Research on the impact of digital inclusive finance on farmers' entrepreneurial decisions

Binyu Yang

doi:10.54097/c2s1h563

Authors

Binyu Yang

DOI:

https://doi.org/10.54097/c2s1h563

Keywords:

DIF(Digital inclusive finance); Chinese farmer; entrepreneurial decisions.

Abstract

This essay explores the relationship between DIF (digital inclusive finance) and farmers' entrepreneurship. This essay points out that DIF improves the financing availability of farmers not covered by non-traditional finance through Internet technology, thereby motivating farmers to start their own business. Based on the CHFS (China Household Finance Survey) data and the Peking University DIF Index, this essay proposes two research questions: first, whether DIF motivates farmers' entrepreneurship, and second, the impact mechanism on farmers' entrepreneurship. Through analysis, the research concludes that the DIF index significantly correlates with farmers' entrepreneurial activities, among which the impact of DIF width of coverage is the main mechanism. The research reveals that width of coverage significantly increases the possibility of farmers' entrepreneurship mainly by increasing the availability of financing channels. In contrast, the depth of coverage has little impact on entrepreneurial decisions. Finally, the research proposed some policy recommendations, such as expanding the coverage of DIF and strengthening farmers' financial awareness education, and emphasizes that in future research, the measurement indicators of DIF should be further optimized, and time series data should be added to deeply analyze its long-term impact on farmers' entrepreneurship.

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