Research On The Impact Of Digital Inclusive Finance On The Credit Demand Of Rural Households

The rural financial market is an important basis for the development economy in China’s rural area.Effective use of the rural financial market can improve the income and welfare level of farmers.Although national policies have paid more and more attention to the development of rural financial markets in recent years,in the process of development,it is still unable to overcome the difficulties such as the lack of rural credit data system and credit data mismatch.However,the booming digital inclusive finance in recent years has gradually begun to affect the economic entities in rural areas and changed their credit demand structure.Therefore,this paper aims to study the impact of digital inclusive finance on rural households’ credit demand,and its underlying impact mechanism,so as to provide reference for rural financial reform from the demand side perspective,so that digital inclusive finance can play a greater role in serving rural finance.In order to study the different impacts of digital inclusive finance on different types of credit needs of rural households,this paper first identifies and classifies the credit needs of rural households through the research status at home and abroad,and excavates the methods to measure credit needs with the China Household Finance Survey(CHFS)questionnaire.Secondly,according to the purposes and channels of loans,credit demand is divided into four categories: productive formal credit demand,productive informal credit demand,consumer formal credit demand and consumer informal credit demand.Then,based on the characteristics of the research questions and the consideration of control variables and other factors,20668 sample data in 2013,2015 and 2017 were used to construct panel data,and the IV Probit model was used for empirical analysis.Then,the mechanism of digital inclusive finance affecting different credit needs was discussed by introducing interactive items and sub samples.Finally,from household income,regional differences Heterogeneity analysis was conducted from the perspective of household head age.The empirical results of this paper mainly include:(1)The development of digital inclusive finance will have a significant negative impact on rural households’ demand for productive formal credit,but a significant positive effect on their demand for consumer informal credit;(2)As the higher the education level,the higher the recognition and acceptance of digital inclusive finance,the more obvious the change of productive formal credit demand;(3)The higher the liquidity constraints of rural households,the more obvious the role of digital inclusive finance in promoting their consumer informal credit demand;(4)For the low age and low-income groups,the impact of digital inclusive finance on the demand for productive formal credit and consumer informal credit is greater than that of the high age and high-income groups;In the eastern region,the negative effect of digital inclusive finance on the demand for productive formal credit is more obvious;In the central and western regions,the positive effect of digital inclusive finance on the demand for consumer informal credit is more obvious.The above research conclusions show that in the process of continuous development of digital inclusive finance,the credit structure of rural households has also been deeply affected and changed.Therefore,this paper puts forward the following policy recommendations: First,formulate relevant rural financial reform policies from the perspective of demand side;Second,strengthen the popularization,promotion and guidance of financial knowledge in rural areas;Third,we should attach importance to the diversified needs of rural households’ consumer lending,and pay attention to the development of informal finance in rural areas,correctly guide its development and strengthen supervision;Fourth,seize the opportunity of digital inclusive financial development and take more targeted measures for different income and regional groups.