The Impact Of Digital Inclusive Financial Development On The Income Of Farmers

Since 2004,the Party Central Committee has included the three rural issues in the No.1 Document of the Central Committee for 16 years.The key of the three rural issues is to solve the problem of farmers' income,while growth of farmers' income is closely related to the development of rural economy.Finance is the lifeblood of rural economy.In recent years,our government has taken developing inclusive finance as a significant means of national poverty alleviation.Inclusive finance has played an important role in precise poverty alleviation.However,there are still some problems can not be solved,such as lack of credit data system,low efficiency of financial services,and difficulties in farmers' financing.With the development of financial science and technology,digital inclusive finance makes up for the deficiencies of traditional finance and becomes a new direction to develop inclusive finance.With the development of big data,artificial intelligence and Internet,financial services break the constraints of time and region.Besides,transaction costs less,financial services become easier to get in more places.China has always been the leader in the field of mobile payment and e-commerce.There is a congenital advantage to increase farmers' income through the development of digital inclusive finance.Due to the time that digital inclusive finance was proposed late,there are only a few researches about the impact of digital inclusive financial development on the income of farmers.The core value of digital inclusive finance is to help people who are outside formal financial services get access to equitable and affordable financial services.Rural residents in our country are in the long tail market of traditional financial institutions.Therefore,it is of great practical significance to study the impact of digital inclusive financial development on the income of farmers.Firstly,the part of literature review in this paper expounds the promotion of inclusive finance through internet finance and digital technology,and then expounds the impact of inclusive finance and digital inclusive finance on farmers' income.Secondly,based on financial exclusion theory,long tail theory and financial inclusion theory,this paper analyses the influence mechanism of digital Inclusive Finance on farmers' income.In addition,it combs the development situation of digital inclusive finance in China.Finally,the empirical study in this paper uses the micro-data collected by China Family Finance Survey and Research Center of Southwest University of Finance and Economics in 2015,as well as the digital inclusive financial index compiled mainly by Peking University Digital Finance Research Center,to analyze the impact of digital inclusive finance on farmers' income through empirical research.Empirical results show that the development of digital inclusive finance has significantly promoted the increase of farmers' income.It is worth noting that 12.29% of the promotion of digital inclusive finance on farmers' income is through business operations.The development of digital inclusive finance has broadened the channels of farmers' income growth,thus bringing about the increase of farmers' income.Although digital inclusive finance has significantly increased the income of rural households,it has a greater impact on families with better education,higher income or in better social capital.For rural family in a disadvantaged position,it has less benefit from the development of digital inclusive finance.Therefore,although digital inclusive finance has promoted the increase of farmers' income,it has also further pulled larger income gap in rural areas.The empirical results of this paper give important policy recommendations: 1.Policymakers should further promote and strengthen the financial knowledge education in rural areas in order to improve the ability of(vulnerable)families to use financial services.2.We should speed up the infrastructure construction of digital inclusive finance and the popularization of rural financial services.3.wo should speed up the improvement of the digital inclusive financial supervision system and promote the healthy development of digital financial services.