Inclusive finance, industrial structure upgrading and farmers’ income: Empirical analysis based on provincial panel data in China

Abstract

This paper empirically studies the relationship among inclusive finance, industrial structure upgrading and farmers’ income, using the panel data of 28 provinces in China from 2006 to 2016.The research finds that inclusive finance can significantly promote the increase of farmers’ income. Moreover, the Upgrading of Industry Structure (UIS) is the intermediary mechanism of inclusive finance to promote the increase of farmers’ income, and this intermediary mechanism is heterogeneous among farmers with different income levels. Finally, the promotion effect of the UIS on farmers’ income is affected by the threshold effect of inclusive finance. Compared with the development level of low inclusive finance, the promotion effect of the UIS on farmers’ income is stronger under the development level of high inclusive finance. According to the results of empirical analysis, we suggest that the development strategy of inclusive finance should aim at the industrial development in rural areas, promote the organic connection between farmers and modern agricultural industry, and drive farmers to increase their income through the transformation and upgrading of rural industries.

Spatial Spillover Effect and Threshold Effect of Digital Financial Inclusion on Farmers’ Income Growth—Based on Provincial Data of China

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Impact of Digital Financial Inclusion on Rural Revitalization in Tanzania

“…Tanzania's number one objective in its list of sustainable development goals is to end poverty in all its displays [30]. Financial inclusion can significantly help farmers' incomes rise [31]. The growth of digital inclusive finance has considerably aided the modernization of the region's industrial structure and has a favorable overall impact on that modernization [32].…”

Study on Sustainable Development Strategy of Rural E-Commerce in the Northeast of China—A Case Study of 11 Villages, 11 Towns and 4 Counties

“…Some villages have successfully explored innovative models of rural e-commerce in the form of collective economy, which has led to further expansion of the collective village economy while improving rural habitat conditions and infrastructure [6]. Research between rural e-commerce development and farming subjects has been more extensive, and scholars have not only found that individual characteristics such as prior experience [8], social capital [9], perceived value [10], information literacy [11] and risk preference [12] have significant effects on farming households' willingness to participate in e-commerce, participation behavior and participation level, but also there is a general consensus that participation in rural e-commerce can promote farming households' income growth [13][14][15][16], increased employment opportunities [16][17][18] and increased entrepreneurship, and the sense of entrepreneurship [19,20] formed a general consensus, which was confirmed by crosssectional or panel data from multiple provinces and regions. These studies show that rural e-commerce is not only an important force for promoting rural economic development, but also an important driving force for transforming traditional farmers into new farmers.…”