Abstract
This paper examines the impact of rural e-commerce development on rural households’ digital credit behavior at the micro-level by using a multivariate Probit model and propensity score matching method with rural residents in the China Family Panel Studies (CFPS) database. Specifically, we examine the complementary or substitution relationship between digital credit and traditional bank credit and the impact of participation in e-commerce on the scale of digital credit of rural households. The empirical results show that there is a substitution relationship between digital credit and traditional bank credit. Participation in e-commerce has a positive impact on the scale of digital credit and the full scale of credit obtained by farmers, with an increase of $0.922 million and $37.49 million in the scale of digital credit and real credit received by farmers who participate in e-commerce, respectively, compared with those who do not participate in e-commerce. Further tests revealed that the difference in capital endowment was an essential reason for the disparity in the size of digital credit received among e-commerce farmers.
Highlights
Developing inclusive finance in rural areas has long been the focus and difficulty of research in the field of rural finance
While farmers engaged in rural e-commerce operations are the first to leave their digital footprints on digital platforms, do they positively impact their digital credit access? To address the above issues, this paper empirically investigates rural residents in the China Family Panel Studies (CFPS) database based on 246 sample areas with a total of 26,275 valid questionnaires, using survey data for four years from 2017 to 2020
This paper examines the impact of rural e-commerce development on rural households’ digital credit behavior at the micro-level using a multivariate Probit model and propensity score matching method with rural residents in the China Family Panel Studies (CFPS) database
Summary
Developing inclusive finance in rural areas has long been the focus and difficulty of research in the field of rural finance. Rural E-Commerce development and farmers’ digital credit behavior: Evidence from China family panel studies problem of complex financing for farmers [6, 7]. Fintech can use digital information such as sales data and payment records left by farmers on e-commerce platforms to transform into credit scores and create prediction models and risk control strategies through big data technology to effectively reduce information asymmetry and transaction costs in credit transactions, thereby improving the level of credit supply and the efficiency of financial services. This paper examines the impact of rural e-commerce development on rural households’ digital credit behavior at the micro-level using a multivariate Probit model and propensity score matching method with rural residents in the China Family Panel Studies (CFPS) database. This paper has both theoretical and practical marginal contributions to the existing literature
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
