The impact of Digital Inclusive Finance on China’s agricultural trade

Abstract

In October 2022, the Party's 20 National Congress report clearly proposed to promote rural revitalization in an all-round way. It will need to speed up digital transformation so that digital inclusive finance can serve the high-quality development of China's agriculture. Based on this, this paper uses the panel data of 31 provinces from 2011 to 2020 to investigate the impact of digital financial inclusion on the scale of agricultural trade. The results show that digital inclusive finance can promote the trade of agricultural products, and the level of economic development is a favorable factor to promote the trade of agricultural products, while foreign investment level, traditional financial level, government intervention level and urbanization level hinder the development of agricultural products trade to a certain extent. Accordingly, relevant policy suggestions are given. First, local government needs to combine the current development of agricultural products and vigorously develop digital inclusive finance. Second, use the financial advantage of digital inclusive finance to improve the scientific and technological content of agricultural products. Third, the government needs to control the degree of intervention in agricultural trade. Fourth, increase investment in new rural infrastructure to boost trade in agricultural products.