Study On The Impact Of Digital Inclusive Finance On Farmers’ Y In Sichuan Province

It has always been an important strategic policy of China to pay attention to the "three rural issues," which have always been at the center of the government’s work,with "Document No.1" putting the three rural issues at the forefront every year.Only by solving the problems of the three rural areas can we ensure the continued development of our economy.With the continuous development of the market economy and the emergence of various economic forms,Internet technology is constantly being updated and iterated,supporting the continuous development of inclusive digital finance in China.Some scholars have shown that digital inclusive finance can reduce financial exclusion and expand the reach of financial services,enabling most rural areas to access financial services,supporting the economic development of rural areas and promoting the income level of farmers.Due to the unbalanced development among China’s regions,the eastern region is currently more developed,while the central and western regions are developing slowly.Sichuan Province is located in southwest China and is a large agricultural province;the impact of digital inclusive finance on farmers’ income in Sichuan Province is representative through analysis and provides new ideas and methods for financial poverty reduction.Based on the above background,this paper first clarifies the significance and research background,specifies the research content and research methods,composes the relevant literature,and summarizes the impact of digital inclusive finance on farmers’ income from different aspects.Relevant concepts and theoretical foundations are organized to analyze the direct and indirect mechanisms of digital inclusive finance on farmers’ income,so as to lay a good foundation for the theoretical and empirical analyses below.Then,we reviewed the data and used graphical analysis to visually demonstrate the current situation of farmers’ income and the development of digital inclusive finance in Sichuan Province.Then,using the data of 21 prefectures and municipalities in Sichuan Province from 2012 to 2020,the explanatory variable digital inclusive finance index,farmers’ income in Sichuan Province as the explanatory variable,industrial structure(ind),education expenditure(edu),agricultural support expenditure(agro),government expenditure scale(gov),and credit constraint(credit)as the control variables,using Stata software,and applying empirical analysis,regression analysis was conducted to prove whether digital inclusive finance can improve farmers’ income,and then,the impact on farmers’ income was analyzed in three dimensions(breadth of coverage,depth of use,and degree of digital support services).The empirical results show that the empirical results derived from the fixed-effects model are that digital inclusive finance has a positive effect on the increase of farmers’ income,followed by three methods to carry out robustness tests: shortening the time window,changing the measurement method,and replacing the explanatory variables,and the coefficients of the explanatory variables are found to be always positive,indicating that the model is robust and the empirical results are valid.The article concludes with relevant policy recommendations based on the results,including improving financial-related laws and regulations on the macro level,strengthening the construction of rural digital financial infrastructure on the micro level,promoting financial knowledge in rural areas,and alleviating the shortage of rural financial talents.