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Rural finance, scale management and rural industrial integration

Author

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  • Xiujuan Tian
  • Manhua Wu
  • Lin Ma
  • Ning Wang

Abstract

Purpose - The purpose of this paper is to empirically investigate the effect of rural finance on industrial integration of rural primary, secondary and tertiary industries. Design/methodology/approach - Using household-level data collected by Third National Agricultural Census and the provincial-level data collected from Wind database, the authors estimated the impacts of rural finance on rural industrial integration using Logit and Probit regression models. Further, the authors examined how the effect of rural finance varies with the age and education of householders, and with household and provincial characteristics by investigating the moderating effect. Findings - The findings show that rural finance has a significant and positive effect on promoting farmers’ participation in new agricultural management organizations. This effect is more obvious in families whose householders are 40–50 years old, or families that have more educated members. This is because the middle-aged or educated people are more willing to accept and take part in industrial integration. The results further indicate that rural finance has a greater effect on industrial integration in provinces with a high degree of marketization, and in provinces with the high output value of industries and services in agricultural intermediate input. Originality/value - The authors investigated the impact of rural finance on rural industrial integration empirically, and this topic is rarely covered before. The findings of this study also enrich the literature on financial development and economic growth as well as provide policy suggestions on how to promote rural industrial integration.

Suggested Citation

  • Xiujuan Tian & Manhua Wu & Lin Ma & Ning Wang, 2020. "Rural finance, scale management and rural industrial integration," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 12(2), pages 349-365, January.
  • Handle: RePEc:eme:caerpp:caer-07-2019-0110
    DOI: 10.1108/CAER-07-2019-0110
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    Citations

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    Cited by:

    1. Yafei Wang & Huanhuan Huang & Jing Liu & Jin Ren & Tingting Gao & Xinrui Chen, 2023. "Rural Industrial Integration’s Impact on Agriculture GTFP Growth: Influence Mechanism and Empirical Test Using China as an Example," IJERPH, MDPI, vol. 20(5), pages 1-21, February.
    2. Xiaowenxu Yue & Yanyan Li & Li Zhou, 2023. "The Impact of Empowerment Practice on the Rural Collective Economy: Empirical Evidence from Rural Communities in China," Land, MDPI, vol. 12(4), pages 1-20, April.
    3. Han Zhang & Dongli Wu, 2023. "The Impact of Rural Industrial Integration on Agricultural Green Productivity Based on the Contract Choice Perspective of Farmers," Agriculture, MDPI, vol. 13(9), pages 1-20, September.
    4. Zirui Zhan & Jeremy Cenci & Jiazhen Zhang, 2022. "Frontier of Rural Revitalization in China: A Spatial Analysis of National Rural Tourist Towns," Land, MDPI, vol. 11(6), pages 1-21, May.
    5. Yiqin Hu & Huyue Yu & Qiaoyu Chen, 2023. "Digitalization Driving High-Quality Converged Development of Rural Primary, Secondary, and Tertiary Industries: Mechanisms, Effects, and Paths," Sustainability, MDPI, vol. 15(15), pages 1-23, July.
    6. Gantian Zheng & Weiwei Wang & Chang Jiang & Fan Jiang, 2023. "Can Rural Industrial Convergence Improve the Total Factor Productivity of Agricultural Environments: Evidence from China," Sustainability, MDPI, vol. 15(23), pages 1-20, November.
    7. Qian, Zongxin & Tu, Yonghong & Zhou, Zinan, 2022. "The impact of financial development on the income and consumption levels of China’s rural residents," Journal of Asian Economics, Elsevier, vol. 83(C).
    8. Han Zhang & Dongli Wu, 2022. "The Impact of Transport Infrastructure on Rural Industrial Integration: Spatial Spillover Effects and Spatio-Temporal Heterogeneity," Land, MDPI, vol. 11(7), pages 1-18, July.

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