Research On The Effect Of Digital Finance On The Integrated Development Of Rural Industries

In an image metaphor,the economy is the body,and finance is the blood.Under the background of the digital economy,the new development pattern of “dual circulation”development pattern,and the implementation of the rural revitalization strategy,the integrated development of rural industries has become a key link and an important foundation for the domestic economic cycle and the prosperity of rural industries.Finance as a key input factor and leading factor,it plays a vital role in all stages of the formation,development,upgrading and integration of the economy and industry.In particular,the new format of digital financial services based on data,a new factor of production,has brought breakthrough changes to the combination of production factors,and its positive effect on all walks of life is becoming increasingly prominent.Due to information asymmetry,lack of mortgage collateral,and high transaction costs in traditional financial services for the “Agriculture,Rural areas and Farmers”,their function of promoting the integrated development of rural industries have not yet been effectively played.Therefore,does digital finance play a role in promoting the integrated development of rural industries? What is its actual effect? What kind of mechanism innovation is needed in the future? This is an urgent question that needs to be explored and answered both theoretically and practically.Up to now,the theoretical and empirical research on the integration and development of rural industries by digital finance has just started,with only a few qualitative analyses,little empirical research on the relationship between the two,and even less relevant systematic research.Thus this research has based on scientific theories and methods,which mainly follows the logical thinking of problem formulation→ concept analysis→ theoretical framework→ model deduction →macro empirical research→ micro empirical analysis→ case analysis →innovative mechanism construction.This research strives to clarify the relationship principle between digital finance and rural industry integration and development,and through empirical methods combining macro,micro,and typical cases,in order to reveal the practical effects and practical problems of digital finance in promoting the integrated development of rural industries,and put forward corresponding mechanism innovations and policy suggestions from the perspective of system theory accordingly.The main research contents of this research are summarized as follows:First and foremost,guided by China’s real problems,based on the cross-integrate multi-disciplinary and domain knowledge,this research preliminary explored the characteristics as well as the supply and demand development trend of the relationship between digital finance and the integrated development of rural industries,it also expanded the applicability of digital finance to promote the integrated development of rural industries.The integrated development of digital finance and rural industries promotes and develops each other,and it has the characteristics of supply and demand adaptation and dynamic balance.Along with the development of science and technology,especially with the evolution of data as the core production factor,the innovation of digital finance has broadened.The breadth of financial services,the application of digital technology also enhances the depth of financial services and digital finance.As an effective medium,digital finance is conducive to improving the matching efficiency and development momentum of supply and demand sides and is conducive to optimizing the configuration and combination of elements,reducing the corresponding costs,it also helpful to breaks through the limitations of time and space,thereby to meet diversified needs and to promote the integrated development of rural industries.Secondly,through macro-level data analysis,the empirical effect test results show that digital finance can enlarge traditional finance,broaden the boundaries of financial services,ease financing constraints,and then promote the integrated development of rural industries,and this positive impact exists spatial spillover effects in adjacent areas.First,on the basis of constructing an indicator system for the integrated development of rural industries,the principal component analysis method is used to measure the integrated development of rural industries in China at this stage,At the same time,the reasons for the differences in various regions are further analyzed to reflect the provinces more comprehensively.,in order to demonstrate the degree of integration and development of rural industries and their differential characteristics.Second,using analytical tools such as spatial econometric models with different weight matrices,empirically analyze the macro effects of digital finance on the integrated development of rural industries.Furthermore,the robustness test is carried out by combining the four methods of replacing the explained variables and measurement methods,replacing the spatial weight matrix,and adding control variables.The macro level data’s research results all show that digital finance has a significant positive role in promoting the integrated development of rural industries,and there is a positive spatial spillover effect;in addition,the per capita financial support to agriculture,and the improvement of labor productivity also have a positive effect on the integrated development of rural industries.Thirdly,through micro field research and micro empirical effect test,it is confirmed that digital finance can increase the availability of financial resources and services,and the use of digital finance can effectively promote the integrated development of rural industries of new agricultural business entities.First,this research has done field research and questionnaire data analysis by selecting representative West and Central region.Through the analysis of the survey questionnaire data,it is found that the biggest constraint faced by the new agricultural business entities in the process of engaging in the integrated development of rural industries is still existing.Second,cleaning up the collected questionnaires and testing the empirical effect.Through the empirical analysis,this research found that the use of digital finance can effectively promote the integrated development of rural industries of new agricultural business entities.In addition,a new type of agricultural business entity with a higher risk appetite and better financial literacy can also promote the development of their rural industrial integration.Fourthly,through the analysis of typical cases,the results show that digital finance with Chinese characteristics to promote the integrated development of rural industries can form a Chinese model and Chinese wisdom that can be used for reference,replication and promotion around the world.Based on the macroscopic and microscopic empirical effect test,it further conducts a double case analysis through the practice of two typical cases of Guangxi Tiandong and Sichuan Pengzhou.The results of the case analysis found that digital finance is conducive to weakening the traditional financial exclusion phenomenon,breaking the difficulty of information asymmetry,enabling and improving other factors through the new leading production factor of data,thereby attracting more factors to invest in the field of “Agriculture,Rural areas and Farmers”,which can also promote the integrated development of local rural industries.In particular,through the multiintegrated financial development model led by the government and coordinated by the market,the rural inclusive financial service model empowered by credit information big data,and the comprehensive service development practice of digital village stations linked by “Agriculture,Rural areas and Farmers”,etc.,which can gradually have formed the Chinese story of digital finance with Chinese characteristics,and promoting the integrated development of rural industries.On the basis of theoretical analysis,macro and micro effect testing and practical exploration,aim at the practical obstacles and problems that still exist,such as financing for the integrated development of rural industries are difficult,expensive and slow;the financial products are single,and it is difficult to meet the fast and diversified financing needs of new agricultural business entities,the agricultural insurance and guarantee systems are not sufficient,and the role of agricultural-related financial markets and services has not been effectively played,digital talents and high-quality innovative human resources are insufficient,the order of the digital financial industry needs to be further standardized,etc.From the perspective of systems theory,this research further explores diversified and multi-level mechanism innovations,proposes the construction of a multicoordinated financial ecological construction mechanism,a talent cultivation channel expansion mechanism,a public service optimization mechanism,and an institutional legal guarantee mechanism,and proposes corresponding policies suggestion.In summary,the innovation of this research lies in: first,the breakthrough and innovation of research perspective and content.This research starts from the perspectives of agricultural economics,finance,informatics,industrial economics and other disciplines,combined with the actual development trend of “Agriculture,Rural areas and Farmers”,starting from the characteristics and content of digital finance in multiple fields,to analyze and construct the impact of digital finance on rural areas’ scope,effect,mode and mechanism of industrial integration development.This not only qualitatively discusses the mechanism,promotion model and practice analysis of digital finance on the integrated development of rural industries,but also conducts systematic mathematical analysis and empirical research on its corresponding structural changes,temporal and spatial distribution,and impact effects.Second,diversity of research and analysis at the macro and micro levels.This study uses both macro and micro data,and utilizes multiple methods and models to test the same proposition.For instance,use principal component analysis method,entropy method,panel space measurement,instrumental variable method,Probit model,etc.,and by replacing explained variables,adding control variables,replacing measurement methods and spatial weight matrices,and other methods to conduct robustness tests.In this way,the dynamic effects of digital finance on the integrated development of rural industries and their interrelationships are more comprehensively reflected.At the same time,combined with domestic and foreign characteristic typical cases to further supplement the demonstration,the research forms a complete closed-loop from qualitative to quantitative to qualitative,which is more objective and scientific.Third,the systematic construction of the research framework and the extended research of the problem.This study systematically summarizes the research trends of related theories at home and abroad,reveals the relationship mechanism through the combination of induction and deductive reasoning,and deeply analyzes the relationship mechanism between digital finance and rural industry integration and development.From multi-dimensional,multi-perspective and multi-angle,and use a variety of empirical methods,a research framework on the effect of digital finance on the integrated development of rural industries is constructed,and the actual effect between the digital finance and integrated development of rural industries is empirically analyzed.In the meantime,combined with sociology and management analysis paradigms,it conducts a more in-depth analysis and deconstruction,expands the analysis to reveal its operating mechanism,and systematically puts forward the corresponding innovation promotion mechanism.To sum up,the practical exploration of China’s digital finance to promote the integrated development of rural industries has formed Chinese wisdom and Chinese solutions,which is expected to become a breakthrough in solving the worldwide problems of rural finance.In the future,it is urgent to take full advantage of the convenience,efficiency,high penetration,external economy,inclusiveness,and incremental marginal benefits of digital finance to further promote the digital transformation and upgrading of rural financial institutions and digital financial business innovation.Give full play to the functions and effects of digital financial services for the development of “Agriculture,Rural areas and Farmers”,accelerate the integrated development of rural industries,and comprehensively promote rural revitalization.