Research On The Influence Of Digital Inclusive Finance On Financing Constraints Of Agriculture-related Smes

Rural revitalization and agricultural and rural modernization are important for China to achieve high-quality development,and agriculture-related SMEs play an important role in China’s rural revitalization and agricultural and rural modernization.However,due to the weakness of agriculture and the relative weakness of enterprises,agriculture-related SMEs often face difficulties in financing and expensive financing when carrying out financing activities,which seriously restrict the development of agriculture-related SMEs.Therefore,it is important to study the financing characteristics of agriculture-related SMEs,analyze the causes of their financing difficulties,and find countermeasures for them to solve their financing problems in order to help them develop with high quality.In recent years,China’s digital inclusive finance has made rapid development,which is reflected in the rapid increase of its coverage,depth of use and digitalization.The development of digital inclusive finance can effectively alleviate financial exclusion and reduce information asymmetry,providing a new solution for agriculture-related SMEs to alleviate financing constraints.Based on this,this paper investigates the effects and mechanisms of digital inclusive finance on financing constraints of agriculture-related SMEs,and further makes a heterogeneous study of them.This paper is divided into three main parts: theory,empirical evidence,and conclusion.First,in the theoretical part,the background of the study is described to illustrate the practical significance of the study,and then the relevant literature is organized and summarized,and the theoretical significance of the study is elaborated.On this basis,concept definition and theoretical analysis are conducted to sort out the theoretical logic of the article writing and to propose research hypotheses.In the empirical part,the development status of digital inclusive finance and the current financing situation of agriculture-related SMEs are analyzed first,and then the2011-2020 agriculture-related SME data are used to measure the degree of financing constraints of agriculture-related SMEs by calculating the SA index,and the 2011-2020 Peking University Digital Inclusive Finance Index is combined with the hybrid OLS model to verify the impact of digital inclusive finance on agriculture-related SMEs financing constraints,followed by the application of the instrumental variables method to alleviate the possible endogeneity problem,and finally the heterogeneity analysis from three perspectives: the nature of enterprise property rights,the region where they are located and the nature of the industry.The conclusion section mainly summarizes the findings of this paper and proposes policy recommendations accordingly.The main findings of this paper are:(1)China’s digital inclusive finance in general as well as the breadth of coverage,depth of use,and digitalization of inclusive finance are developing rapidly,but the overall growth rate is slowing down,while there is a development imbalance between regions.In addition,provinces in coastal areas have seen faster development of digital inclusive finance.(2)There is a large financing constraint for agriculture-related SMEs in China.This is mainly reflected in the low level of agriculture-related loans,the weakness of agriculture and the weakness of enterprises themselves.(3)Digital inclusive finance has a mitigating effect on the financing constraints of agriculture-related SMEs in China.Through theoretical analysis,digital inclusive finance can mitigate the financing constraints of agriculture-related SMEs by reducing financial exclusion and information asymmetry.(4)There is heterogeneity in the alleviation effect of digital inclusive finance on the financing constraints of rural SMEs in China.This is reflected in the stronger effect of agricultural SMEs on alleviating the financing constraints of non-state,central and western regions and agricultural and manufacturing SMEs.Based on the above findings,this paper puts forward the following policy recommendations:(1)Continue to promote the healthy development of digital inclusive finance.(2)Continue to promote the high-quality development of agriculture.(3)Enhance the quality of agricultural financial services and improve the agricultural financial system.(4)Strengthen the construction of enterprises themselves and pay attention to their differentiated development.