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Can Digital Finance Promote Rice Production? Evidence from Sichuan Province, China

Author

Listed:
  • Wenjing Li

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Gege Lin

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Qingqing Dou

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Abbas Ali Chandio

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Shahbaz Ali Larik

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

  • Yan Liu

    (College of Economics, Sichuan Agricultural University, Chengdu 611130, China)

Abstract

The rapid development of digital finance has effectively reduced financial challenges in rural regions and created new prospects for agricultural production. This article examines the impact of digital financial development on rice production in Sichuan Province using the 2011–2021 Peking University Digital Financial Inclusion Index and data from 20 prefecture-level cities, as well as a fixed effects model. The mechanism of action is also discussed. The findings reveal that the advancement of digital finance plays an important role in boosting the expansion of rice production, and that digital finance influences rice output by increasing farmers’ willingness to participate in insurance and increasing the availability of credit. A heterogeneity analysis reveals that digital finance has a substantial effect on mountainous and economically poor areas. As a result, this article suggests that the breadth and depth of usage of rural digital finance, as well as the development of rural digital financial services in underdeveloped areas, should be expanded.

Suggested Citation

  • Wenjing Li & Gege Lin & Qingqing Dou & Abbas Ali Chandio & Shahbaz Ali Larik & Yan Liu, 2024. "Can Digital Finance Promote Rice Production? Evidence from Sichuan Province, China," Agriculture, MDPI, vol. 14(6), pages 1-22, June.
    • Handle: RePEc:gam:jagris:v:14:y:2024:i:6:p:965-:d:1418371
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    References listed on IDEAS

    as
    1. Chandio, Abbas Ali & Ozdemir, Dicle & Jiang, Yuansheng, 2023. "Modelling the impact of climate change and advanced agricultural technologies on grain output: Recent evidence from China," Ecological Modelling, Elsevier, vol. 485(C).
    2. Cyn-Young Park & Rogelio Mercado, 2018. "Financial Inclusion, Poverty, And Income Inequality," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(01), pages 185-206, March.
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