Research On The Impact Of Digital Inclusive Finance On Farmers’ Income In China

In 2021,the No.1 Document of the CPC Central Committee once again raised the importance of"agriculture,rural areas and farmers",which is the 18^thtime that this issue has appeared in the No.1 Document of the CPC Central Committee.The document emphasizes the need to actively solve the problems existing in agriculture,rural areas and farmers,accelerate the revitalization of rural areas,do our best to accelerate the process of agricultural and rural modernization,and strive to enable farmers to live a happy and harmonious life as soon as possible.The proposal of inclusive finance in 2005 injected new vitality into the realization of rural poverty alleviation and income increase.The state has issued a number of policies to support Inclusive Finance,hoping to achieve rapid and high-quality development.This measure does play a great role in revitalizing the rural economy.However,with the development of Inclusive Finance,the problems of high cost and low operation efficiency are becoming increasingly prominent.There is an urgent need to innovate Inclusive Finance.Coupled with the progress of Internet technology,the"digital"+"inclusive finance"model has gradually been attached importance to.In 2016,the G20summit was held in Hangzhou,at which the concept of digital Inclusive Finance was put forward,hoping to provide financial services for financial vulnerable groups by combining front-end technologies such as big data and artificial intelligence with traditional finance.Firstly,based on the current situation of social development,this paper introduces many relevant studies at home and abroad to help understand the impact of Inclusive Finance on Farmers’income before the emergence of digital Inclusive Finance,the introduction of Inclusive Finance,digital Inclusive Finance and the influencing factors of farmers’income,which also paves the way for the subsequent research of this paper.Secondly,it introduces the theories related to digital Inclusive Finance and farmers’income,and studies the changes of scholars’views on financial development and farmers’income.Two research hypotheses of this paper are introduced from the aspects of direct mechanism and indirect mechanism.Then it introduces that the development of digital Inclusive Finance has roughly experienced four stages and five development modes.At present,with the promotion of digital Inclusive Finance,there are some problems,such as limited financial coverage,lack of reasonable supervision and management,loopholes in the credit investigation system and so on.Then,the"Peking University Digital inclusive finance index"is introduced and the inclusive finance index is constructed.According to the collected data,the model is constructed and the corresponding empirical analysis is carried out.The results show that there is a certain gap in the development level of digital Inclusive Finance in the eastern,central and Western regions.Digital inclusive finance plays a role in promoting farmers’income,but there are regional heterogeneity and double threshold values.When the digital inclusive financial index is less than 28.4,the effect of increasing farmers’income is the best;When the digital inclusive financial index is between 28.4 and 45.56,the effect of increasing farmers’income will be reduced;When the digital inclusive financial index is greater than 45.56,the effect of income increase is the smallest.Finally,according to the theoretical analysis and empirical results,it is proposed to advocate the role of government guidance and incentive,strengthen the publicity and learning of relevant theoretical knowledge,improve the innovation level of financial institutions and network coverage in rural areas,promote the construction of rural payment system and credit investigation system,strengthen supervision,protect consumers’rights and interests,and realize the balanced development of digital Inclusive Finance.