IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v61y2024ics1544612324000643.html
   My bibliography  Save this article

Can digital inclusive finance facilitate productive investment in rural households?–An empirical study based on the China Household Finance Survey

Author

Listed:
  • Fu, Changluan
  • Sun, Xinyue
  • Guo, Mengting
  • Yu, Chenyang

Abstract

Encouraging rural households to increase their own financial investment in agriculture is necessary for agricultural productivity. Digital inclusive finance can help rural households access financial resources and increase productive investments. This paper employs data from the CHFS to conduct an empirical analysis. The findings indicate that digital inclusive finance significantly enhances rural household productive investment. The expansion of rural household social networks and the improvement of financial literacy both have a positive influence on this effect. Based on these conclusions, this paper suggests increasing support for rural digital inclusive finance as a means to enhance rural household productive investment.

Suggested Citation

  • Fu, Changluan & Sun, Xinyue & Guo, Mengting & Yu, Chenyang, 2024. "Can digital inclusive finance facilitate productive investment in rural households?–An empirical study based on the China Household Finance Survey," Finance Research Letters, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000643
    DOI: 10.1016/j.frl.2024.105034
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324000643
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105034?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pengpeng Yue & Aslihan Gizem Korkmaz & Zhichao Yin & Haigang Zhou, 2022. "The rise of digital finance: Financial inclusion or debt trap," Papers 2201.09221, arXiv.org.
    2. Yang Liu & Chunyu Liu & Mi Zhou, 2021. "Does digital inclusive finance promote agricultural production for rural households in China? Research based on the Chinese family database (CFD)," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 13(2), pages 475-494, January.
    3. Carter, Michael R. & Tjernström, Emilia & Toledo, Patricia, 2019. "Heterogeneous impact dynamics of a rural business development program in Nicaragua," Journal of Development Economics, Elsevier, vol. 138(C), pages 77-98.
    4. Zhang, Jian & Mishra, Ashok K. & Zhu, Peixin & Li, Xiaoshun, 2020. "Land rental market and agricultural labor productivity in rural China: A mediation analysis," World Development, Elsevier, vol. 135(C).
    5. Yu, Chenyang & Moslehpour, Massoud & Tran, Trung Kien & Trung, Lam Minh & Ou, Jenho Peter & Tien, Nguyen Hoang, 2023. "Impact of non-renewable energy and natural resources on economic recovery: Empirical evidence from selected developing economies," Resources Policy, Elsevier, vol. 80(C).
    6. Morshadul Hasan & Thi Le & Ariful Hoque, 2021. "How does financial literacy impact on inclusive finance?," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-23, December.
    7. Schuetz, Sebastian & Venkatesh, Viswanath, 2020. "Blockchain, adoption, and financial inclusion in India: Research opportunities," International Journal of Information Management, Elsevier, vol. 52(C).
    8. Nguyen, Duc Loc & Grote, Ulrike & Nguyen, Trung Thanh, 2019. "Migration, crop production and non-farm labor diversification in rural Vietnam," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 175-187.
    9. Yang Liu & Chunyu Liu & Mi Zhou, 2021. "Does digital inclusive finance promote agricultural production for rural households in China? Research based on the Chinese family database (CFD)," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 13(2), pages 475-494, January.
    10. Hajdu, Flora & Granlund, Stefan & Neves, David & Hochfeld, Tessa & Amuakwa-Mensah, Franklin & Sandström, Emil, 2020. "Cash transfers for sustainable rural livelihoods? Examining the long-term productive effects of the Child Support Grant in South Africa," World Development Perspectives, Elsevier, vol. 19(C).
    11. Li, Jie & Wu, Yu & Xiao, Jing Jian, 2020. "The impact of digital finance on household consumption: Evidence from China," Economic Modelling, Elsevier, vol. 86(C), pages 317-326.
    12. Emily Breza & Arun G. Chandrasekhar, 2019. "Social Networks, Reputation, and Commitment: Evidence From a Savings Monitors Experiment," Econometrica, Econometric Society, vol. 87(1), pages 175-216, January.
    13. Michael Bailey & Ruiqing Cao & Theresa Kuchler & Johannes Stroebel, 2018. "The Economic Effects of Social Networks: Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 126(6), pages 2224-2276.
    14. Chamberlin, Jordan & Jayne, T.S., 2020. "Does farm structure affect rural household incomes? Evidence from Tanzania," Food Policy, Elsevier, vol. 90(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mingyi Yan & Xizi Cao, 2024. "Digital Economy Development, Rural Land Certification, and Rural Industrial Integration," Sustainability, MDPI, vol. 16(11), pages 1-27, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Yuyu & Zhao, Zengli & Lu, Chen, 2024. "Does digital inclusive finance increase land rent? Evidence from rural China," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1025-1043.
    2. Song, Yunxing & Gong, Yuanyuan & Song, Yan & Chen, Xiaohui, 2024. "Exploring the impact of digital inclusive finance on consumption volatility: Insights from household entrepreneurship and income volatility," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    3. Lu, Xiaomeng & Zhang, Xianjun & Guo, Jiaojiao & Yue, Pengpeng, 2024. "Digital finance era: Will individual investors become better players?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    4. Yue, Sishi & Yang, Mo & Dong, Dayong, 2024. "Do enterprises adopting digital finance exhibit higher values? Based on textual analysis," The North American Journal of Economics and Finance, Elsevier, vol. 73(C).
    5. Ye, Xiang & Yue, Pengpeng, 2024. "What matters to reshaping consumption patterns in China? Digital inclusion and supply chain," Finance Research Letters, Elsevier, vol. 59(C).
    6. Wenjun Ge & Siyuan Wu & Derong Yang, 2024. "Who are the genuine contributors to economic development under environmental regulation? Evidence from total factor productivity in the three industries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 22801-22838, September.
    7. Lee, Chien-Chiang & Lou, Runchi & Wang, Fuhao, 2023. "Digital financial inclusion and poverty alleviation: Evidence from the sustainable development of China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 418-434.
    8. Wang, Jianqiu & Yin, Zhichao & Jiang, Jialing, 2023. "The effect of the digital divide on household consumption in China," International Review of Financial Analysis, Elsevier, vol. 87(C).
    9. Wu, Fan & Cui, Fengxiang & Liu, Tao, 2023. "The influence of digital inclusive finance on household wealth: A study based on CHFS data," Finance Research Letters, Elsevier, vol. 58(PC).
    10. Yangjie Liao & Xiaokun Zhou, 2023. "Can Digital Finance Contribute to Agricultural Carbon Reduction? Evidence from China," Sustainability, MDPI, vol. 15(22), pages 1-20, November.
    11. Xu, Dandan & Guo, Dongli & Yue, Pengpeng & Li, Mengshi, 2024. "Household green consumption: Does digital inclusion matter?," International Review of Financial Analysis, Elsevier, vol. 91(C).
    12. Guo, Xiaoxin & Zhong, Shihu, 2023. "Unintended consequences: How does digital inclusive finance affect migrants' urban settlement intentions?," International Review of Financial Analysis, Elsevier, vol. 89(C).
    13. Xing, Qiuhang & Xu, Gaoshuang & Wang, Yanping, 2024. "Open government data and the cost of debt," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    14. Hu, Debao & Zhai, Chenzhe & Zhao, Sibo, 2023. "Does digital finance promote household consumption upgrading? An analysis based on data from the China family panel studies," Economic Modelling, Elsevier, vol. 125(C).
    15. Yuting Shi & Qiuwang Cheng & Yizhen Wu & Qiaohua Lin & Anxin Xu & Qiujin Zheng, 2023. "Promoting or Inhibiting? Digital Inclusive Finance and Cultural Consumption of Rural Residents," Sustainability, MDPI, vol. 15(3), pages 1-21, February.
    16. Yang Jingyi & Guo Xiaoyang & Zhang Xiuwu, 2024. "Analysis of the Effect of Digital Financial Inclusion in Promoting Inclusive Growth: Mechanism and Statistical Verification," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-18.
    17. Xilong Jiang & Guanyi Yin & Yi Lou & Shuai Xie & Wei Wei, 2021. "The Impact of Transformation of Farmers’ Livelihood on the Increasing Labor Costs of Grain Plantation in China," Sustainability, MDPI, vol. 13(21), pages 1-18, October.
    18. Zhao, Tianrui & Chen, Kezheng & Wang, Qian & Luo, Chunyang, 2023. "Financial literacy, liquidity constraits and household risk asset allocation," Finance Research Letters, Elsevier, vol. 58(PC).
    19. Wei Yu & Huiqin Huang & Keying Zhu, 2023. "Enhancing Construction Enterprise Financial Performance through Digital Inclusive Finance: An Insight into Supply Chain Finance," Sustainability, MDPI, vol. 15(13), pages 1-16, June.
    20. Yue, Pengpeng & Korkmaz, Aslihan Gizem & Yin, Zhichao & Zhou, Haigang, 2022. "The rise of digital finance: Financial inclusion or debt trap?," Finance Research Letters, Elsevier, vol. 47(PA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000643. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.