Abstract
In developing countries, household credit constraints are determining factors affecting the efficient allocation of land resources. Digital financial inclusion is a new type of digital financial business by providing financial services through Internet technology. It broadens the information dissemination channels, provides more nonagricultural employment opportunities, and lowers the household credit constraint. By using data from Chinese farm households, we find that digital inclusive finance affects income of renting out households and expenditure of renting in households through credit mechanisms. Developing digital inclusive finance is a method to promote market-oriented land transfer and the effective utilization of land resources.
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