The Impact Of Fin Tech Development On The Entrepreneurship Of Migrant Workers Returning To Their Hometowns

Fin Tech is reconstructing the new pattern of financial development.Different from traditional finance,Fin Tech has unique advantages in optimizing the allocation of financial resources and promoting the development of inclusive finance.Fin Tech plays an important role in serving long-tail customers,improving rural financial environment and helping rural revitalization by leveraging technological advantages such as the internet,artificial intelligence,big data,cloud computing,and blockchain.The rural revitalization is the next rural strategy of China,and how to use Fin Tech to achieve strategy implementation is a crucial aspect.As an important part of promoting rural revitalization and realizing modernization of agricultural and rural,entrepreneurship of migrant workers returning to their hometowns has been developed rapidly in recent years and there has been a "return wave" of migrant workers.By the end of 2021,11.2million people had returned to their hometowns to start businesses.As the combination of rural and urban economy,county economic growth and environment of entrepreneurship and employment play a key role in promoting rural revitalization and realizing common prosperity,and provide fertile soil for entrepreneurship of migrant workers returning to their hometowns.In addition,the China Labor Force Dynamics Survey conducted by Sun Yat-sen University every two years has accumulated relevant data.Therefore,this paper attempts to study the impact and mechanism of Fin Tech development on the entrepreneurship of migrant workers returning to their hometowns from the county data level,hoping to further enrich the research content in the fields related to rural finance,farmers’ entrepreneurship,and rural revitalization.In order to test the relationship between the development level of Fin Tech and entrepreneurship of migrant workers returning to their hometowns,this paper selects the cross-sectional data of sample individuals at the county level in 2018 and measures the development level of local Fin Tech using the “Peking University Inclusive Finance Index” at the country level.In addition,the impact of Fin Tech development level on the entrepreneurship of migrant workers returning to their hometowns and effect mechanism have been investigated using probit model and mediating effect model.Through empirical research,this paper finds that there is a significant positive correlation between the level of Fin Tech development and the entrepreneurship of migrant workers returning to their hometowns.The regression results of the mediating effect model show that,on the one hand,the development of Fin Tech can improve the financial literacy and entrepreneurial literacy of migrant workers by increasing their frequency of internet use,thus promoting migrant workers to start their own businesses back home.On the other hand,the development of Fin Tech promotes migrant workers to start businesses in their hometowns by easing the degree of financing constraints and releasing more credit conducive to them.Finally,the impact of the development level of different sub-indicators of Fin Tech on the entrepreneurship of migrant workers returning to their hometowns shows heterogeneity.There is a significant positive correlation between the coverage breadth and use degree of migrant workers returning home to start businesses,while the degree of digitization is not.The conclusion of this paper has theoretical value for reference in analyzing the correlation between the development of Fin Tech and entrepreneurship of migrant workers returning to their hometowns.Meanwhile,based on the conclusion,this paper puts forward relevant policy suggestions for the government to guide Fin Tech in promoting the return of migrant workers to start businesses in their hometowns and rural revitalization,which has reference significance for the implementation of the strategy of rural revitalization assisted by Fin Tech.It will provide reference for the subsequent scholars in this field.