Research On The Impact Of Digital Inclusive Finance On Farmers’ Entrepreneurship

The report of the 20 th Party Congress emphasizes the importance of implementing the employment priority strategy,proposes to strengthen the construction of the social security system,improve and perfect various employment and entrepreneurship systems,and effectively place the promotion of employment and entrepreneurship in a more prominent position.Farmer entrepreneurship has become an important way to optimize the structure of the rural economy and cultivate new momentum for agricultural and rural development.Digital inclusive finance is a new type of financial service that integrates digital technology with inclusive finance in a deeper way,which expands the coverage of traditional financial services,alleviates the problem of financial exclusion,effectively reduces the cost of services and information collection,increases the enthusiasm of farmers to carry out entrepreneurial activities,and is of great significance to promote the rural revitalization strategy.Based on four periods of unbalanced panel data from the China Household Financial Survey(CHFS)for 2013,2015,2017,and 2019,this paper empirically investigates the impact effect,impact mechanism,and heterogeneity of digital inclusive finance on farmers’ entrepreneurship in combination with regional digital inclusive finance indices,and obtains the following research conclusions:(1)Digital inclusive finance significantly promotes farmers’ entrepreneurship.To overcome the potential endogeneity problem,the estimation results of the IV-Probit and 2SLS models still provide consistent findings using the spherical distance between the farmer’s household location and Hangzhou as the instrumental variable of digital inclusive finance.(2)Different dimensions of digital inclusive finance have differential effects on farmers’ entrepreneurship,except for the insignificant effect of digitization,the breadth of coverage and depth of use and the tertiary indicators of payment services,credit services and money fund services all play a significant role in promoting farmers’ entrepreneurship.(3)In terms of the impact mechanism,digital inclusive finance mainly promotes farmers’ entrepreneurship by improving their financial literacy,alleviating the credit constraints faced by farmers,and strengthening their social trust.(4)Further study found that there is heterogeneity in the impact of the development of digital inclusive finance on farmers’ entrepreneurship.The analysis of heterogeneity of entrepreneurship types shows that digital inclusive finance is more helpful to promote opportunity-based entrepreneurship;the analysis of regional heterogeneity shows that digital inclusive finance has a greater effect on promoting farmers’ entrepreneurship in eastern regions than in central and western regions;the analysis of heterogeneity of education levels shows that digital inclusive finance has a more significant effect on promoting entrepreneurship in farmers’ households with higher education levels of household heads;the analysis of heterogeneity of income levels shows that digital inclusive The analysis of income level heterogeneity shows that digital inclusive finance has a stronger impact on entrepreneurship of high-income farmers’ households;the analysis of heterogeneity of households of different ages shows that digital inclusive finance has a stronger effect on entrepreneurship promotion of middle-aged and young households.Based on the above findings,this paper puts forward the following policy recommendations: First,increase the policy inclination and support for farmers’ entrepreneurship and employment,and optimize the ecology of innovation and entrepreneurship.Second,improve the construction of rural digital information infrastructure and continue to innovate diversified financial products.Third,strengthen financial knowledge and education popularization in rural areas,and improve farmers’ financial literacy level and risk management ability.