The Impact Of Digital Inclusive Financial Development On Farmers’ Income Structure

Since the "12th Five-Year Plan",China’s economy has been developing rapidly,the industrial structure has been optimized,and the relative income gap between urban and rural residents has been narrowing,but the absolute gap has been increasing.How to effectively improve farmers’ income and optimize the income structure of farmers has become the key to solving the current problems of "agriculture","rural areas" and "farmers".In the following years,different documents have put forward different visions on the topic of promoting the development of the "three rural areas",insisting on giving top priority to solving the "three rural areas" problem and comprehensively promoting rural revitalization while solving the "three rural areas" problem.In addition to solving the "three rural issues",the Party and society as a whole will make efforts to enable the majority of farmers to lead a better life.In this context,the economic conditions in rural areas continue to improve,the agricultural industry chain tends to complete,and the source of farmers’ income is changing from the traditional agricultural income to diversified income.Along with the improvement of agricultural industry ecology in rural areas,the current financial services can no longer meet the financial needs of farmers,which also puts forward higher requirements for the financial services in rural areas.However,the financial development in rural areas is still the most basic and weakest link in the overall financial development of China,which is characterized by the imbalance between financial supply and demand,the mismatch between capital supply and capital demand,the coexistence of idle resources and shortage,as well as the low efficiency and high threshold of financial services,and the development of "three rural areas" is greatly restricted,and financing is difficult and expensive.The problem is still difficult to solve.Inclusive finance has effectively solved these problems by breaking through financial boundaries,lowering the threshold of financial services and improving the efficiency of financial services,which has a positive effect on alleviating the financial constraints of farmers,reducing financial exclusion in rural areas and improving the dual structure of urban and rural areas.At the same time,digital inclusive finance is gradually replacing traditional finance as an important supplement to finance in the context of rapid development of mobile Internet.Compared with traditional inclusive finance,digital inclusive finance overcomes its shortcomings,eliminates spatial barriers to farmers’ access to financial services,further reduces financial transaction costs,expands the scope of financial use,and plays a significant role in raising farmers’ income and optimizing their income structure.By combining the existing rural financial development theories and income distribution theories,we analyze the mechanism of digital inclusive finance affecting farmers’ itemized income,and form the research hypothesis of this paper accordingly,and study the mechanism of digital inclusive finance development affecting farmers’ itemized income by building a model.This paper explores the impact of digital inclusive finance on farmers’ itemized income with a spatial lag model based on the spatial correlation test between farmers’ itemized income data and digital inclusive finance index using farmers’ itemized income and digital inclusive finance data from 30 provinces between 2011 and 2020,and further investigates the regional spatial spillover effect of farmers’ itemized income by dividing into four regions: East,Central,West and Northeast.The following conclusions are drawn: First,at the overall level,digital inclusive finance contributes positively to farmers’ per capita business income and negatively to farmers’ annual per capita wage and property income.Second,from the perspective of spatial spillover effects,digital inclusive finance has the same growth-promoting effect on farmers’ operating income in both the region and neighboring regions.For farmers’ wage income and property income,digital inclusion has a significant negative effect on both the region and the neighboring regions.Third,from a sub-regional perspective,in the eastern region,digital inclusive finance shows a significant negative effect on all three per capita incomes of farmers;in the western region,the development of digital inclusive finance shows a significant positive contribution to both farmers’ wage income and business income;in the northeastern region,farmers’ business income is significantly influenced by digital inclusive finance,but has a significant inhibitory effect on the increase of property income;and In contrast,in the central region,all the effects of digital inclusive finance on farmers’ sub-income have positive effects,but none of them is significant.From the above empirical results,it can be concluded that digital inclusive finance has significant effects on farmers’ wage,business and property incomes,and at the same time,these effects show different characteristics depending on the regions.In view of the above empirical analysis,the following four suggestions are made to further promote the development of digital inclusive finance and strengthen its role in promoting farmers’ income and optimizing their income structure: First,continue to deepen the development of digital inclusive finance.Second,optimize the spatial layout of financial resources.Third,enhance farmers’ awareness of financial risk prevention.Fourth,strengthen financial supervision in rural areas.