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

In February this year,the "No.1 Central Document" was released as scheduled,which clearly stated that we should continue to do a good job in the work related to agriculture,rural areas and farmers,and steadily push forward the rural revitalization project.At present,the farmers due to the high transaction costs,such as a variety of reasons,the lack of good collateral is still faced with loans "expensive" and "hard" problem,lack of funds is important factors hindering the development of the farmers improve life and production,therefore,how to improve the rural household of formal credit,improving farmers production and living is one of the important research subject at present.The Inclusive Finance is the powerful fulcrum to solve the problem of "agriculture,rural areas and farmers" in China,but the traditional Inclusive Finance due to high cost,low efficiency,to alleviate phenomenon of farmers’ formal credit constraints presented support the weak,and the Digital Financial Inclusion compared with the traditional Inclusive Finance in the aspect of coverage in rural areas there is a natural advantage,And the rapid development of Internet financial and big data in recent years,under the support of present a rapid development momentum,in such a background,the research the Digital Financial Inclusion model in the new era of development,the Digital Financial Inclusion impact on formal credit for farmers,to solve the problem of farmers’ formal credit constraints provides a new train of thought,is of great significance.On the basis of theoretical analysis,this paper combines the provincial-level data released by The Center for Digital Inclusive Finance of Peking University with the data of Chinese Household Finance Survey(CHFS)in 2015 and2017 to construct short panel data for empirical research.First of all,based on the random effects panel Probit model for the construction of the sample data of benchmark return,the study found that the Digital Financial Inclusion can significantly promote farmers groups get probability of formal credit,further analyzing the three secondary indexes of the Digital Financial Inclusion found that covers the breadth index and digitized degree index also can play a role in promoting,However,the extent of coverage has a greater effect on promoting farmers’ access to formal credit,while the depth index has no significant effect on promoting farmers’ access to formal credit.In order to ensure the robustness of the conclusion,this paper conducted regression again after removing the data of municipalities directly under the Central Government,and found that the result was robust.In addition,the Logit model was replaced for regression,and found that the result was still robust and reliable.In order to solve possible endogeneity problems,this paper also constructed instrumental variables and verified them by IV-Probit model.It was found that the results were still robust after solving possible endogeneity errors.In order to explore the indirect effect of digital inclusive finance on the formal credit of rural residents,this paper further conducts a mechanism analysis.The results show that the Digital Financial Inclusion can improve the financial literacy level of rural residents,so as to improve their access to formal credit possibility.Finally,considering the Digital Financial Inclusion presents different development status in different region,and analyzed the heterogeneity,the results show that the points of,east,west,east and central regions of the Digital Financial Inclusion to play good promoting effect of formal credit and in the western region,the promoting effect is not significant;At the same time,also studied the Digital Financial Inclusion impact on normal credit in terms of total assets of the record of formal schooling and family show heterogeneity,the results show that the Digital Financial Inclusion in low degree and assets less family can play a greater role in promoting,fully shows the Digital Financial Inclusion has inclusive and universality.Based on these results,this paper also investigated how to develop the Digital Financial Inclusion and how to improve the financial literacy of rural residents to provide the corresponding policy Suggestions,hoping to the direct effect and indirect effect through the Digital Financial Inclusion possibilities to improve farmers of formal credit,relieve farmers face a shortage of funds,the specification and support the development of the rural areas of formal credit.