E-Commerce and Preferential Credit to Enable Farmers’ Cooperative Financing

Abstract

ABSTRACT Agricultural cooperatives are pivotal in promoting agricultural industrialization but face capital shortages, needing strategic financing selection between bank loans and e-commerce. This paper uses Stackelberg game theory to examine cooperatives’ and enterprises’ optimal decision-making and motivations under different financing. It scrutinizes preferences for financing methods and explores bank credit policies and e-commerce interest rates in channel selection. Findings suggest that developing favorable policies, like encouraging green credit and e-commerce support for farmers, could significantly improve cooperatives’ financing. Expanding digital initiatives in supply chains could also enable more sustainable models. This research illuminates cooperatives’ complex decision-making and offers insights to bolster agricultural finance systems.