10.57647/amc.2026.100108

Human Capital Thresholds and the International Absorption of Agricultural Technology: Evidence from Emerging Economies

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  • Mohsen Mohammadi Khyareh*1,
  1. Department of Economics and Administrative Science, Gonbad Kavous University, Gonbad Kavous, Iran

Received: 2026-01-25

Revised: 2026-02-25

Accepted: 2026-03-03

Published in Issue 2026-06-30

Copyright (c) 2026 Mohsen Mohammadi Khyareh (Author)

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This work is licensed under a Creative Commons Attribution 4.0 International License.

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Mohammadi Khyareh, M. (2026). Human Capital Thresholds and the International Absorption of Agricultural Technology: Evidence from Emerging Economies. Agricultural Marketing and Commercialization, 10(1). https://doi.org/10.57647/amc.2026.100108
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Abstract

The international absorption of agricultural technology (agri-tech) is essential for enhancing agricultural productivity and ensuring global food security, particularly in emerging economies. Despite increasing flows of Foreign Direct Investment (FDI) and growing international collaboration in agricultural innovation, the effectiveness of these channels remains uneven. This study examines whether human capital quality (HCQ) constitutes a critical threshold condition for the effective absorption of foreign agricultural technologies. Using an unbalanced panel of 30 emerging economies over the period 2002–2023, the study employs a dynamic panel data framework. System Generalized Method of Moments (System-GMM) is applied to address endogeneity, persistence, and unobserved heterogeneity. To capture potential non-linearities, a Panel Threshold Regression (PTR) model is used to identify regime shifts in the relationship between external technology inflows and domestic agricultural innovation outcomes. The results indicate that human capital quality significantly enhances the absorptive capacity for agricultural technology transmitted through both FDI and international co-patenting networks. However, these effects are highly non-linear. Meaningful spillovers to agricultural productivity and patenting emerge only once HCQ exceeds a critical threshold, estimated at a human capital index value of approximately 0.55. Below this threshold, FDI-related technology spillovers are statistically insignificant. The findings highlight the existence of human capital thresholds in international agri-tech diffusion. Policies aimed solely at attracting FDI or promoting international collaboration are insufficient unless accompanied by sustained investments in education quality and skill formation.

Keywords

  • Human capital thresholds,
  • Agricultural technology absorption,
  • International knowledge spillovers,
  • foreign direct investment,
  • emerging economies
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