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

Promoting farmers’ income growth is both the focus of the three rural issues and a key part of achieving rural revitalisation and common prosperity.Financial exclusion is a major dilemma for farmers to increase their income.Under the traditional financial model,financial services in rural areas are costly and farmers find it difficult to access financial services due to the constraints of service costs and service radius.With the help of digital technologies such as big data and the Internet,digital inclusive finance has expanded the coverage of financial services,improved the efficiency of capital allocation,and provided a new path for farmers’ entrepreneurship,rural industrial development and farmers’ income increase.Given this background,this paper focuses on exploring and answering the following questions: Firstly,does digital inclusive finance affect farmers’ income? Secondly,does this impact vary heterogeneously by region,income source and income group? Third,does the upgrading of industrial structure play a mediating role in the impact of digital inclusive finance on farmers’ income?Based on this,this paper examines the impact of digital inclusive finance on farmers’ income from both theoretical and empirical perspectives.From the theoretical perspective,this paper clarifies the impact mechanism of digital inclusive finance and farmers’ income based on the generalization and mathematical reasoning of relevant literature,and innovates according to the shortcomings of existing literature.From an empirical perspective,this paper first uses inter-provincial panel data of 31 provinces(municipalities)across China from 2011-2020 and uses empirical research to construct a panel model to analyse the overall impact of digital inclusive finance on farmers’ income;then on this basis,the rural industrial structure is incorporated into the research framework to explore the mediating effect of the upgrading of rural rural industrial structure in the impact of digital inclusive finance on farmers’ income;finally,from Finally,we further explore the heterogeneous impact of digital inclusive finance on farmers’ income,starting from regional heterogeneity,income source heterogeneity and income group heterogeneity.The main findings of this paper are as follows: First,the development of digital inclusive finance can significantly improve farmers’ income,and all dimensions can lead to the growth of farmers’ income.Secondly,industrial upgrading plays a partly mediating role in the process of digital inclusive finance promoting farmers’ income growth.Thirdly,there is regional heterogeneity,income source heterogeneity and income group heterogeneity in the impact of digital inclusive finance on farmers’ income.Finally,in response to the findings of the study,this paper puts forward recommendations to accelerate the development of digital inclusive finance in rural areas,strengthen farmers’ quality education,promote the satisfaction of multi-level demand,and promote the development of digital inclusive finance in accordance with local conditions.