Abstract
Scarce financial supply and low education level are important factors that inhibit the entrepreneurial behavior of rural residents in China. Based on the Static Career Choice Model, this paper matches the 2016 China Household Finance Survey (CHFS) micro-data with the Peking University Digital Financial Inclusive Index of the previous years to empirically test the impact of digital financial inclusion and academic education, tacit knowledge, and Internet learning on farmers. The direct influence and linkage effect of entrepreneurial behaviors revealed that digital financial inclusion and multidimensional education could significantly promote farmers’ entrepreneurial choices. Digital financial inclusion can relieve the constraints of insufficient academic education on farmers’ entrepreneurial choices, partially replace the tacit knowledge for rural residents, and improve the efficiency of Internet learning, which ultimately enhances the entrepreneurial behavior choices of the farmers. Our results are still significant and robust with respect to the sample data, explained variables, and estimation methods. We also consider the use of instrumental variables to overcome the potential endogeneity issues. Through comparative analysis of different regions, it is found that the performance is particularly obvious in the eastern region.
Highlights
Entrepreneurship of farmers can help improve rural employment and farmers’ incomes, which is an important means to implement the Rural Revitalization Strategy of the Central Government of China. e research on the factors affecting farmers’ entrepreneurship and policies to promote entrepreneurship has aroused extensive discussions in the academic community. e factors affecting farmers’ entrepreneurship, individual education, and the rapid development of digital financial inclusion have played an important supporting role.Education is closely related to the entrepreneurial behavior of farmers
In column (1), only independent variables such as academic education and digital financial inclusion are added. e results show that academic education positively affects the entrepreneurial behavior of the farmers, that is, the increase of academic education will affect the increase in the probability of entrepreneurship
In column (2), we further add the cross-terms. e regression results show that the coefficients of the cross-terms between the index and academic education are negative, that is, digital financial inclusion has a certain supplementary effect on academic education and alleviates the lack of academic education for rural residents’ entrepreneurial choices. e possible explanation is that digital financial inclusion allows rural residents to accumulate more specialized information and knowledge, which will partially supplement the impact of academic education on rural residents’
Summary
Entrepreneurship of farmers can help improve rural employment and farmers’ incomes, which is an important means to implement the Rural Revitalization Strategy of the Central Government of China. e research on the factors affecting farmers’ entrepreneurship and policies to promote entrepreneurship has aroused extensive discussions in the academic community. e factors affecting farmers’ entrepreneurship, individual education, and the rapid development of digital financial inclusion have played an important supporting role. E research on the factors affecting farmers’ entrepreneurship and policies to promote entrepreneurship has aroused extensive discussions in the academic community. E factors affecting farmers’ entrepreneurship, individual education, and the rapid development of digital financial inclusion have played an important supporting role. The use of digital financial inclusion can alleviate credit constraints and is an important way to achieve multidimensional education and improve financial literacy and entrepreneurial capabilities. How does multidimensional education affect farmers’ entrepreneurial behavior in the digital financial inclusion environment? What is the interaction between academic education and digital financial inclusion on entrepreneurial performance? E rest of the paper is organized as follows: In Section 2, we review the related literature and discuss the theoretical justification of our research. E theoretical analysis framework and proposed hypotheses for empirical testing are discussed .
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