Abstract
The effect of digital financial inclusion on farmers’ income growth is worth theoretical discussion and empirical testing. Based on the sample data of 30 provinces in the Chinese mainland from 2011 to 2019, this paper adopted the spatial Durbin model and the panel threshold model to empirically study the impact of digital financial inclusion on the growth of farmers’ income; furthermore, the heterogeneity of the impact was studied in terms of the difference of provincial economic development level. The results showed that: first, digital financial inclusion can significantly promote farmers’ income growth; second, digital financial inclusion has a positive spatial spillover effect on farmers’ income growth; third, the impact of digital financial inclusion on farmers’ income growth has a double threshold effect: farmers’ income growth increases with the development of digital financial inclusion; and fourth, the impact of digital financial inclusion on farmers’ income growth is heterogeneous in terms of provincial economic development level.
Highlights
Academic Editors: GrigoriosThe growth of farmers’ income is of great practical significance to the development of rural economy and the stability of farmers’ lives
The data of farmers’ income and digital financial inclusion are based on the data of 30 Provinces in China from 2011 to 2019 (Tibet was excluded because serious data were missing)
In order to comprehensively study the impact of digital financial inclusion on farmers’ income growth, this paper considered the spatial spillover effect of digital financial inclusion and selected the spatial Durbin model for empirical analysis by referring to the research on the spatial spillover effect of digital financial inclusion [21,42]
Summary
The growth of farmers’ income is of great practical significance to the development of rural economy and the stability of farmers’ lives. Digital financial inclusion promotes economic growth in rural areas and increases farmers’ income. The development of inclusive finance has narrowed the income gap between urban and rural areas while raising farmers’ income. Yu and Wang found that inclusive finance can reduce wage income, promote the growth of farmers’ income, and narrow the income gap between urban and rural areas [15]. Digital financial inclusion reduces the income gap between urban and rural areas and contributes to farmers’. From the perspective of space, this paper empirically tested the spatial spillover effect of digital financial inclusion on farmers’ income growth using the spatial Durbin model. From the angle of nonlinear impact, this paper constructed a panel threshold model and took digital financial inclusion as the threshold variable to test its threshold effect on farmers’ income growth.
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