A Study On The Impact Of Digital Inclusive Finance On Farm Credit

Along with the rapid development of the global economy,China’s overall economic development level has steadily improved in recent years,with the second highest GDP in the ranking.Meanwhile,in China,the booming development of technologies such as big data and the Internet is driving the digitization process of the financial industry and promoting the development of inclusive finance in a longitudinal and deeper way.However,the lack of sound financial market operation mechanism and excessive government intervention have led to the uneven and unreasonable distribution of financial resources in rural areas,which in turn has restricted farmers’ credit.The development of digital inclusive finance on the basis of inclusive finance enables farmers to more easily access the convenience and enjoy the services brought by digital inclusive finance,which has opened up a new way for China’s rural financial This opens up a new path for the development of rural finance in China.At the theoretical level,this paper firstly defines the concepts of digital inclusive finance and farmer credit,using the "financial exclusion theory","financial development theory","inclusive growth theory ","theory of farmers’ borrowing behavior" and "theory of farmers’ credit subsidies" as the theoretical basis,and analyzed the current situation of digital inclusive finance and farmers’ credit development,analyzed the correlation between them,and put forward the research On this basis,we propose the influence mechanism of digital inclusive finance on farmers’ credit and theoretically explore the development of digital inclusive finance and farmers’ credit.At the empirical level,this paper uses the digital inclusive finance development index of 31 provinces in China from 2011 to 2020 as the explanatory variables,the scale of loans to farmers from 2011 to 2020 as the explanatory variables,and the government’s share of agriculture-related expenditures,residents’ rural income,economic level development,rural employment level,and urbanization as the control variables,and adopts a fixed-effects panel regression model to analyze and study from an inter-provincial perspective The impact of digital inclusive finance on the credit development of farmers and the mechanism test with the urban-rural income gap as the mediating variable.Conclusions are obtained from the analysis,and the results show that,firstly,there is a significant positive relationship between digital inclusive finance and the development level of farm credit.Second,dividing China into three regions,namely,the middle,east and west,the impact of digital inclusive finance on the credit level of farm households in these three regions varies significantly,especially for the eastern region.Third,digital inclusive finance can promote the access to credit for farm households by narrowing the urban-rural income gap.Finally,by analyzing and summarizing the empirical results,we put forward policy suggestions for the development of digital inclusive finance in China: first,deepen the reform of digital inclusive finance;second,improve the ecological environment of digital inclusive finance;third,promote the knowledge of digital inclusive finance in science and technology.