The Impact Of Digital Financial Inclusion On Farmers’ Access To Formal Credit

Keeping the basic plate of "agriculture,rural areas and farmers" cannot be separated from the "difficult loan" problem faced by farmers.As the main body of microeconomy in rural areas,farmers should have certain capital constraints in production,consumption,investment and other aspects.Whether it is to expand production and investment,or to ease temporary living difficulties,they need financial support.At present,the development of rural finance in China is relatively backward,and the credit demand of rural families is not fully met,mainly due to information asymmetry and high transaction costs.However,with the rise of digital inclusive finance,it seems to bring new hope for the rural credit market.In this paper,the China Family Finance Survey data(CHFS)in 2015,2017 and 2019 were matched with the data corresponding to the Peking University Digital Financial inclusion Index,and the samples were matched to more micro county-level rural households,increasing the variability of the data.The impact of inclusive finance on formal loans of rural residents was studied empirically by using the panel Logit model.Through robustness testing,endogeneity discussion,heterogeneity analysis,and mechanistic analysis,The following basic conclusions are obtained: first,the digital financial inclusion index and its secondary index coverage breadth and use depth index can significantly improve the participation degree of farmers in formal loans at the significance level of 10% or more,In addition,the instrument variable of "the spherical distance between the family and Zhejiang Province" multiplied by the "National County Digital Financial Inclusion General Index" is constructed,After performing a series of robustness tests,It is found that the development of digital inclusive finance has an obvious positive effect on the acquisition of farmers’ formal loans.Second,after the heterogeneity analysis of the sample peasant households,it is found that the development of digital inclusive finance has a significant positive effect on the formal credit at the 5% level,while the impact on the low education households is not significant;the probability of obtaining formal credit in the eastern and central households is significantly positive at the 5% level,but the marginal effect of the peasant households in the west is positive but not significant.Third,through mechanism analysis,from empirical and theoretical research,it is found that digital inclusive finance has a significant positive effect on farmers’ formal credit by improving the risk tolerance of farmers.Based on the above conclusions,this paper puts forward the relevant policy suggestions for the formal credit of farmers under the development of digital inclusive finance in the new era: first,it is necessary to continuously promote the development of digital inclusive finance,promote the digital inclusive finance infrastructure,establish the digital financial talent training mechanism in rural areas and establish the relevant supervision system;second,strengthen the risk tolerance training for farmers,improve the risk tolerance of farmers through education and training,and always be alert to the credit risk of the "long tail" group.