Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Does digital inclusive finance promote agricultural production for rural households in China? Research based on the Chinese family database (CFD)

Does digital inclusive finance promote agricultural production for rural households in China?... The development of digital inclusive finance appears to be able to solve the difficulty of traditional finance, which cannot completely cover agriculture and farmers and provides better financial services and products to Chinese farmers. Thus, it improves the farmers' enthusiasm for agricultural production. The purpose of this paper is to clarify whether this goal is indeed being achieved.Design/methodology/approachThis paper theoretically analyzes the mechanism that influences the effect of digital inclusive finance on rural households' agricultural production decisions and conducts an empirical study based on a sample from the Chinese family database (CFD).FindingsFirst, the development of digital financial inclusion in general can encourage rural households to reduce agricultural production. Second, the negative effect of digital inclusive finance on households' agricultural output is realized by widening the gap between the efficiency of non-agricultural economic activities and the efficiency of agricultural production. The wider the gap is, the lower the enthusiasm of households for agricultural production. Third, the mediating effect of “digital financial inclusion – difference in efficiency – agricultural output” has a significant negative effect on households with low agricultural production efficiency, but not households with high agricultural production efficiency. Digital inclusive finance has no significant effect on the difference in efficiency between the two economic activities of high-efficiency households, but a greater difference in efficiency between the two economic activities corresponds to higher enthusiasm of households for agricultural production.Originality/valueTo the best of our knowledge, this paper is the first to analyze the impact of digital financial inclusion on Chinese farmers' agricultural production. The findings of this study can provide policy-related insights to help local governments promote the development of digital finance in China's agricultural economy. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png China Agricultural Economic Review Emerald Publishing

Does digital inclusive finance promote agricultural production for rural households in China? Research based on the Chinese family database (CFD)

Liu, Yang; Liu, Chunyu; Zhou, Mi
China Agricultural Economic Review , Volume 13 (2): 20 – Jun 1, 2021
Download PDF
20 pages

Loading next page...
 
/lp/emerald-publishing/does-digital-inclusive-finance-promote-agricultural-production-for-Nhmco0jpEL
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1756-137X
DOI
10.1108/caer-06-2020-0141
Publisher site
See Article on Publisher Site

Abstract

The development of digital inclusive finance appears to be able to solve the difficulty of traditional finance, which cannot completely cover agriculture and farmers and provides better financial services and products to Chinese farmers. Thus, it improves the farmers' enthusiasm for agricultural production. The purpose of this paper is to clarify whether this goal is indeed being achieved.Design/methodology/approachThis paper theoretically analyzes the mechanism that influences the effect of digital inclusive finance on rural households' agricultural production decisions and conducts an empirical study based on a sample from the Chinese family database (CFD).FindingsFirst, the development of digital financial inclusion in general can encourage rural households to reduce agricultural production. Second, the negative effect of digital inclusive finance on households' agricultural output is realized by widening the gap between the efficiency of non-agricultural economic activities and the efficiency of agricultural production. The wider the gap is, the lower the enthusiasm of households for agricultural production. Third, the mediating effect of “digital financial inclusion – difference in efficiency – agricultural output” has a significant negative effect on households with low agricultural production efficiency, but not households with high agricultural production efficiency. Digital inclusive finance has no significant effect on the difference in efficiency between the two economic activities of high-efficiency households, but a greater difference in efficiency between the two economic activities corresponds to higher enthusiasm of households for agricultural production.Originality/valueTo the best of our knowledge, this paper is the first to analyze the impact of digital financial inclusion on Chinese farmers' agricultural production. The findings of this study can provide policy-related insights to help local governments promote the development of digital finance in China's agricultural economy.

Journal

China Agricultural Economic Review – Emerald Publishing

Published: Jun 1, 2021

Keywords: Digital inclusive finance; Rural families; Agricultural output; Production decision

References

  • Macroeconomics of unbalanced growth: the anatomy of urban crisis
    Baumol, W.J.
  • A more complete conceptual framework for SME finance
    Berger, A.N.; Udell, G.F.
  • Internet access and farm household income–empirical evidence using a semi‐parametric assessment in taiwan
    Chang, H.H.; Just, D.R.
  • Rural development finance in Vietnam: a microeconometric analysis of household surveys
    Duong, P.B.; Izumida, Y.
  • Digital finances heterogeneous effects on rural financial demand: evidence from China household finance survey and inclusive digital finance index
    Fu, Q.Z.; Huang, Y.P.
  • Serving smallholder farmers: recent developments in digital finance
    Grossman, J.; Tarazi, M.
  • Measuring China's digital finance inclusion: index compilation and spatial characteristics
    Guo, F.; Wang, J.Y.; Wang, F.; Kong, T.; Zhang, X.; Cheng, Z.Y.
  • Can online social interaction improve the digital finance participation of rural households?
    He, J.; Li, Q.H.
  • Digital economy and tourism impacts, influences and challenges
    Hojeghan, S.B.; Esfangareh, A.N.
  • Financing model innovation of new agricultural management entities under the background of Internet banking in China
    Jiang, W.G.; Li, L.Q.
  • The measurement of the development level of digital inclusive finance in rural areas and its influencing factors
    Jiang, Q.Z.; Li, H.; Liu, X.T.
  • Digital financial inclusion and urban-rural income gap: a literature based analysis
    Li, M.; Feng, S.X.
  • Economic growth effects of population migration of China's provinces:an empirical analysis of endogenous growth
    Lu, J.; Zhou, H.M.
  • Digital finance for all: powering inclusive growth in emerging economies
    Manyika, J.; Lund, S.; Singer, M.; White, O.; Berry, C.
  • Collective action for smallholder market access
    Markelova, H.; Meinzen-Dick, R.; Hellin, J.; Dohrn, S.
  • Agricultural productivity, comparative advantage, and economic growth
    Matsuyama, K.
  • Extraction and upgrading of key links in agricultural industry chain under the background of ‘Internet+’
    Meng, L.P.; Dong, B.M.
  • What will technology do to financial structure? (No. w6892)
    Mishkin, F.S.; Strahan, P.E.
  • The dynamics of crowdfunding: an exploratory study
    Mollick, E.
  • Financial inclusion, poverty, and income inequality
    Park, C.Y.; Mercado, R.
  • Crowdfunding: a new innovative model of providing funding to projects and businesses
    Pierrakis, Y.; Collins, L.
  • The future of small farms: new directions for services, institutions, and intermediation
    Poulton, C.; Dorward, A.; Kydd, J.
  • Does digital inclusion finance promote inclusive growth in rural areas?--a study on the survey data from 2114 rural residents in Beijing, Tianjin and Hebei provinces
    Ren, B.Y.; Li, L.Y.
  • Direct and indirect effects in linear structural equation models
    Sobel, M.E.
  • Empirical analysis of digital inclusive finance bridging the urban-rural residents' income gap
    Song, X.L.
  • The evolution of China's floating population and its impact on urbanization: a comparative analysis based on inter-and intra-provincial perspectives
    Wang, X.X.; Gao, X.D.
  • Research on the innovative model of ‘agricultural value chain + Internet finance’: taking Nongfu loan and Beijing agricultural loan as examples
    Wang, G.Z.; Jiang, G.H.
  • Research on the factors of poverty subjects' acquired sense under the background of e-commerce poverty alleviation
    Wang, X.T.; Kang, C.P.; Wang, X.D.
  • The future of small farms
    Wiggins, S.; Kirsten, J.; Llambí, L.
  • An empirical analysis of factors influencing the development of digital inclusive finance -- based on the test of spatial panel model
    Wu, J.W.; Guo, F.C.; Gu, Z.Y.
  • Can digital finance promote entrepreneurship?--evidence from China
    Xie, X.L.; Shen, Y.; Zhang, H.X.
  • Measurement of rural financial inclusion and analysis of influencing factors -- taking Xinjiang as an example
    Xu, M.
  • Research on innovation of financing mode of small and micro enterprises based on internet finance
    Xu, X.X.; Lin, D.J.
  • Financial development, technological innovation and industrial structure transformation: the theoretical framework of multi-sector endogenous growth
    Yi, X.; Liu, F.L.
  • Does digital financial inclusion significantly influence household consumption? Evidence from household survey data in China
    Yi, X.J.; Zhou, L.
  • An analysis of the rural inclusive finance and its determinants: an empirical analysis based on data collected from 107 rural credit cooperatives in Shaanxi province
    Zhang, H.; Luo, J.C.; Hao, Y.F.
  • Digital economy, financial inclusion, and inclusive growth
    Zhang, X.; Wan, G.H.; Zhang, J.J.
  • The status, obstacles and countermeasures of internet financial innovation in rural area from the inclusive finance perspective
    Zhao, Y.
  • Reconsidering baron and Kenny: myths and truths about mediation analysis
    Zhao, X.; Lynch, J.G.; Chen, Q.
  • Rural digital inclusive finance: development model and typical cases
    Zheng, M.H.
  • The mechanism and empirical analysis of the integration of agriculture and tourism to promote the optimization and upgrading of rural industrial structure: a case study of national demonstration counties of leisure agriculture and rural tourism
    Zhong, Y.P.; Tang, L.R.; Hu, P.B.
  • Finance and inequality: theory and evidence
    Asli, D.K.; Levine, R.