An Empirical Study On The Impact Of Digital Financial Inclusion On Farmers’ Income

The No.1 Document issued by the Central Committee in February 2023 stressed the need to firmly adhere to the bottom line of ensuring national food security and preventing the return to poverty on a scale,to innovate ways for farmers to get rich and increase income,to promote farmers’ employment and income,to improve agricultural operation efficiency,and to grant farmers more full property rights and interests.Therefore,how to increase farmers’ income and prevent the scale of poverty is an issue that our country needs to focus on at present."Digital inclusive finance",which deeply integrates digital technology and inclusive finance,provides a new solution to this problem.Compared with traditional financial services,digital inclusive finance has lower transaction cost,lower financial threshold and wider coverage.It can enable farmers to access affordable financial services and thus broaden the channels for farmers to increase their income.Therefore,under the above background,it is of great theoretical and practical significance to study the impact of the development of digital inclusive finance on farmers’ income.Based on the trickle-down effect theory,the Long tail theory and other relevant theories,this paper empironally studies the impact of digital inclusive finance on farmers’ income at the prefecture-level city level.Firstly,it analyzes the relevant theories of digital inclusive finance affecting farmers’ income,and analyzes the influence mechanism of digital inclusive finance on farmers’ income from both direct and indirect perspectives.Secondly,the paper visually describes the development status of digital inclusive finance and farmers’ income in recent ten years by means of graphic combination,and focuses on analyzing the correlation between digital inclusive finance and farmers’ income.Finally,in the empirical analysis part,the panel data of 202 prefecture-level cities from 2011 to 2020 are selected to empirically test the impact of digital inclusion finance development on farmers’ income by using the fixed effect model,including the direct impact and intermediary effect of digital inclusion finance development on farmers’ income as well as the heterogeneity test of different dimensions and levels of farmers’ income.Through the above research,this paper mainly draws the following conclusions: From the empirical results,the development of digital inclusive finance can promote the increase of farmers’ income,and the regression results are significant;From different dimensions,both coverage breadth and use depth can significantly promote farmers’ income increase,and the coverage breadth of digital inclusive finance has the strongest effect.For farmers of different income levels,the development of digital inclusive finance plays a stronger role in boosting the income of low-income farmers.In the intermediary effect,digital financial inclusion can indirectly affect farmers’ income through promoting agricultural technology progress and improving the level of digital infrastructure.Finally,based on the above empirical results and research conclusions,this paper finally puts forward some suggestions,such as innovating financial products,enhancing the construction of rural digital infrastructure and improving the regulatory system of digital inclusive finance.