Research On The Influence Of Digital Financial Inclusion On The Entrepreneurship Decision Of Returned Migrant Workers

At present,China’s economic development has entered a new normal.How to make up for the weaknesses of "agriculture,rural areas and farmers" and balance urban and rural development is the essence of China’s economic sustainable and healthy development,building a well-off society in an all-round way and building a socialist modern country in an all-round way.As the endogenous power of economic development,entrepreneurship is a major measure to stabilize growth,increase employment,and promote high-quality economic transformation.The entrepreneurship of returned migrant workers can provide a path for the rural labor force to obtain employment nearby and boost the rural economy,which can effectively promote rural revitalization.In 2015,the State Council issued the Opinions on Supporting the Returned Migrant Workers and Other Personnel to Home for Entrepreneurship,which clearly proposed using finance to serve for "agriculture,rural areas and farmers" to support the returned migrant workers and other personnel for entrepreneurship.However,the returned migrant workers are vulnerable groups.They are faced with serious financial exclusion under the traditional financial model,and financing difficulties have significantly restricted their entrepreneurship.How to alleviate the financing difficulties and effectively support them to start businesses has become an urgent problem to eliminate the rural hollowing and boost the rural economy.In order to enable rural groups to enjoy financial services equally,in January 2016,the State Council issued the "Plan for Promoting Financial Inclusion Development(2016-2020)",which pointed out that the financial support for rural initial entrepreneurs should be significantly improved,and various financial inclusion institutions should use modern information technology such as the Internet to extend the breadth and depth of financial services.In February 2019,the People’s Bank of China,the Ministry of Agriculture and Rural Affairs and other five departments jointly released the "Guiding Opinions on Financial Services for Rural Revitalization",which proposed to popularize digital financial inclusion in rural areas,satisfy the financial needs of agriculture and rural areas,and empower rural revitalization with digital financial inclusion.Is the development of digital financial inclusion an effective way to alleviate the financial exclusion of migrant workers and promote the entrepreneurship of returned migrant workers? Few relevant studies have answered it.In view of this,this paper focuses on the impact of digital financial inclusion on the returned migrant workers’ choice of entrepreneurship.This paper selects the Peking University Digital Financial Inclusion Index of China,matches it with the China Labor-force Dynamics Survey,and constructs the CRE-Probit Model for empirical analysis to test whether the digital financial inclusion affects the returned migrant workers’ choice of entrepreneurship and the heterogeneity of its impact.The research results show that: first,the overall development level and depth of use of digital financial inclusion can significantly promote the entrepreneurship of returned migrant workers,while the coverage is not.Second,the impact is regionally heterogeneous.The significant effect is only reflected in the western region,not in the central and eastern regions.Third,the heterogeneity is also reflected in family income.The effect is only significant in the low-income families,not in the high-income families.The policy implications are as follows: First,further perfect the rural digital financial inclusion system,accelerate the risk prevention and credit system construction,to strengthen the support role of digital financial inclusion for returned migrant workers’ entrepreneurship.Second,promote the deep integration of digital technology and financial services,and persistently explore the functions of digital financial inclusion in credit,payment,insurance,investment,monetary fund and other aspects.Third,increase the policy preference for the western region and low-income groups,make up for the deficiency of digital financial inclusion in the western region,and reduce the use cost of digital inclusive financial services for low-income returned migrant workers,to make the digital financial inclusion realize the real inclusive value.Fourth,comprehensively improve the quality level of returned migrant workers in terms of financial literacy,digital literacy and entrepreneurial skills.