Research On The Impact Of Digital Inclusive Finance On Farmers’ Risk-Bearing Capacity

In the critical period of avoiding large-scale push to poverty in China,cementing the effective combination between the accomplishments of poverty alleviation and rural revitalization,how to improve the risk-bearing capacity of farmers has become a linear task.At present,our national defense return to poverty is still facing many difficulties,the main manifestation is in the unstable income of the people who have been lifted out of poverty,lacking of development ability and motivation,weak risk awareness,etc.In the final analysis,its risk-bearing ability is not strong enough to withstand various risks of returning to poverty.An important reason for these difficulties and pain points is that financial problems cannot be properly solved.For a long time,due to the imperfect development of China’s financial market,it is impossible for people to meet their financial needs and use traditional financial instruments to get rid of the risk of returning to poverty.On the basis of traditional inclusive finance,considered objective needs of economic development,digital inclusive finance uses digital technology to reduce the transaction cost,effectively improve farmer’sassess to financial,and help hoisting the risk-bearing capacity of people who are lifted out of poverty.It is important for China to achieve poverty return to poverty.Strategic significance.Whether farmers,as an important part of vulnerable groups returning to poverty,can use digital inclusive finance to improve their risk-bearing ability and prevent poverty return has become the top priority we should pay attention to.This paper focuses on poverty alleviation farmers,takes the prevention of returning to poverty as the starting point,and studies the impact of digital inclusive finance on farmers’ risk-taking ability according to relevant theories such as financial exclusion theory,inclusive growth theory,feasible ability theory,poverty vicious circle theory,etc.First of all,it explains that digital inclusive finance enhances the availability of financial services in the three channels of credit,savings and insurance,directly promotes the improvement of farmers’ risk-bearing capacity,and reveals the impact mechanism of digital inclusive finance on farmers’ risk-taking through the transmission mechanism that promotes economic growth and improves income distribution.Secondly,through Analyze the development trend of digital inclusive finance and measure the risk-bearing capacity level of farmers,form panel data from 25 provinces across the country,and divide them according to geographical location,dimensions and vulnerability.A two-way fixed effect model is used to analyze the national overall,digital inclusive finance three sub-indexes,eastern and central and western regions,and brittle.The weak or weak groups respectively verify the impact of digital inclusive finance on farmers’ risk-bearing ability.Thirdly,using the intermediary effect model,we will further explore the transmission mechanism of China’s digital inclusive finance to improve the risk-bearing capacity of farmers by promoting regional economic growth and improving the income gap.Finally,according to theoretical study and empirical research results,policy proposals to help farmers achieve the eradication of poverty are put forward.The main findings are as follows:First,theoretical research has found that digital inclusive finance helps farmers improve their risk-bearing ability by directly improving the coverage of credit,savings,insurance and other financial services.Second,across the country and sub-regions,the development level of digital inclusive finance and the risk-bearing capacity of farmers have shown an average trend of increasing year by year.Third,the two-way fixed effect model is used to verify that digital inclusive finance can effectively improve farmers’ risk-bearing ability,and the results have passed the 1% significance level test and robustness test.Fourth,it can be seen from the test results of the intermediary effect model that digital inclusive finance indirectly helps farmers improve their risk-bearing ability through the transmission mechanism that promotes economic growth.Fifth,the impact effect of digital inclusive finance is heterogeneous in dimensions,regions and groups.First,the three sub-indexes of digital inclusive finance have a catalytic role in promoting farmers’ risk absorption.Among them,the use of the depth index has the greatest impact on farmers’ risk absorption,followed by the breadth and the smallest degree of digitization.Second,due to the more complete digital inclusive financial infrastructure in the eastern region,the financial literacy of farmers is better than that in the central and western regions,so its impact is better than that of the central and western regions.Third,the impact of digital inclusive finance on the risk-bearing capacity of vulnerable farmers is higher.This paper attempts to take farmers’ risk-bearing ability as the research object,combined with digital inclusive finance,and analyze the effects of digital inclusive finance affecting farmers’ risk-bearing ability.It is a useful supplement to the relevant research on digital inclusive finance and the prevention of farmers’ return to poverty,and has certain new ideas.At the same time,based on the empirical analysis of the micro-subject of farmers,it not only proves that digital inclusive finance can promote the improvement of farmers’ risk-bearing ability,but also reveals its effective transmission path,providing a decisive decision for the government to promote digital inclusive finance in rural areas,enhance the risk-bearing capacity of farmers.