IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i24p10944-d1543201.html
   My bibliography  Save this article

Can Agricultural Credit Promote the Green Transformation of China’s Agriculture?

Author

Listed:
  • Lei Zhang

    (School of Finance, Nanjing University of Finance and Economics, Nanjing 210023, China)

  • Lili Xu

    (College of Economics and Management, Inner Mongolia Agricultural University, Hohhot 010018, China)

  • Mingzi Gao

    (School of Finance, Nanjing Agricultural University, Nanjing 210095, China)

  • Mingdong Zhou

    (College of Economics and Management, Suqian University, Suqian 223800, China)

Abstract

The key to sustainable agricultural development is the transition to an environmentally friendly economic growth model. The development of agricultural credit (AC) plays an important role in promoting the shift of agricultural economic growth toward a green and low-carbon direction. In this context, a key question that needs to be addressed is the theoretical basis for how AC development affects agricultural green total factor productivity (AGTFP), and whether this relationship can be empirically tested. This article analyzes the impact mechanism of China’s AC development on AGTFP and conducts empirical testing using provincial panel data from 2009 to 2019. The results show that AC development significantly contributes to improving AGTFP. In terms of the underlying mechanism, AC development primarily fosters agricultural green technology innovation, thereby enhancing AGTFP.

Suggested Citation

  • Lei Zhang & Lili Xu & Mingzi Gao & Mingdong Zhou, 2024. "Can Agricultural Credit Promote the Green Transformation of China’s Agriculture?," Sustainability, MDPI, vol. 16(24), pages 1-14, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:24:p:10944-:d:1543201
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/24/10944/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/24/10944/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Qinhang Xu & Peixin Zhu & Liang Tang, 2022. "Agricultural Services: Another Way of Farmland Utilization and Its Effect on Agricultural Green Total Factor Productivity in China," Land, MDPI, vol. 11(8), pages 1-15, July.
    2. Pastor, Jesus T. & Lovell, C.A. Knox, 2005. "A global Malmquist productivity index," Economics Letters, Elsevier, vol. 88(2), pages 266-271, August.
    3. Farrin, Katie & Miranda, Mario J., 2015. "A heterogeneous agent model of credit-linked index insurance and farm technology adoption," Journal of Development Economics, Elsevier, vol. 116(C), pages 199-211.
    4. Matin Qaim, 2020. "Role of New Plant Breeding Technologies for Food Security and Sustainable Agricultural Development," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 129-150, June.
    5. Fang, Zhen, 2023. "Assessing the impact of renewable energy investment, green technology innovation, and industrialization on sustainable development: A case study of China," Renewable Energy, Elsevier, vol. 205(C), pages 772-782.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    7. Yi-feng Zhang & Min-xuan Ji & Xiu-zhi Zheng, 2023. "Digital Economy, Agricultural Technology Innovation, and Agricultural Green Total Factor Productivity," SAGE Open, , vol. 13(3), pages 21582440231, August.
    8. Zhang, Xiaoheng & Hu, Lingxiao & Yu, Xiaohua, 2023. "Farmland Leasing, misallocation Reduction, and agricultural total factor Productivity: Insights from rice production in China," Food Policy, Elsevier, vol. 119(C).
    9. Lingui Qin & Yan Zhang & Yige Wang & Xinning Pan & Zhe Xu, 2024. "Research on the Impact of Digital Green Finance on Agricultural Green Total Factor Productivity: Evidence from China," Agriculture, MDPI, vol. 14(7), pages 1-23, July.
    10. Huiquan Li & Qingning Lin & Yan Wang & Shiping Mao, 2023. "Can Digital Finance Improve China’s Agricultural Green Total Factor Productivity?," Agriculture, MDPI, vol. 13(7), pages 1-19, July.
    11. Deng, Haiyan & Zheng, Wangyi & Shen, Zhiyang & Štreimikienė, Dalia, 2023. "Does fiscal expenditure promote green agricultural productivity gains: An investigation on corn production," Applied Energy, Elsevier, vol. 334(C).
    12. Nihal Ahmed & Zeeshan Hamid & Farhan Mahboob & Khalil Ur Rehman & Muhammad Sibt e Ali & Piotr Senkus & Aneta Wysokińska-Senkus & Paweł Siemiński & Adam Skrzypek, 2022. "Causal Linkage among Agricultural Insurance, Air Pollution, and Agricultural Green Total Factor Productivity in United States: Pairwise Granger Causality Approach," Agriculture, MDPI, vol. 12(9), pages 1-17, August.
    13. Akoété Ega Agbodji & Ablamba Ahoefavi Johnson, 2021. "Agricultural Credit and Its Impact on the Productivity of Certain Cereals in Togo," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(12), pages 3320-3336, September.
    14. Li Wang & Jinyang Tang & Mengqian Tang & Mengying Su & Lili Guo, 2022. "Scale of Operation, Financial Support, and Agricultural Green Total Factor Productivity: Evidence from China," IJERPH, MDPI, vol. 19(15), pages 1-18, July.
    Full references (including those not matched with items on IDEAS)

    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. Linwei Wang & Yixin Hu & Rong Kong, 2023. "The Impact of Bancassurance Interaction on the Adoption Behavior of Green Production Technology in Family Farms: Evidence from China," Land, MDPI, vol. 12(5), pages 1-26, April.
    2. Xinxin Zhou & Tong Chen & Bangbang Zhang, 2023. "Research on the Impact of Digital Agriculture Development on Agricultural Green Total Factor Productivity," Land, MDPI, vol. 12(1), pages 1-20, January.
    3. Xiaocheng Wang & Chenxi Yang & Cuixia Qiao, 2024. "Agricultural Service Trade and Green Development: A Perspective Based on China’s Agricultural Total Factor Productivity," Sustainability, MDPI, vol. 16(18), pages 1-23, September.
    4. Linfang Chen & Huanyu Sun & Shenghui Zhou & Shixing Jiao & Xiao Zhao & Jianmei Cheng, 2024. "Analysis of Resource Misallocation and Total Factor Productivity Losses in Green Agriculture: A Case Study of the North China Region," Sustainability, MDPI, vol. 17(1), pages 1-25, December.
    5. Xuelan Li & Rui Guan, 2023. "How Does Agricultural Mechanization Service Affect Agricultural Green Transformation in China?," IJERPH, MDPI, vol. 20(2), pages 1-23, January.
    6. Feng Zhou & Chunhui Wen, 2023. "Research on the Level of Agricultural Green Development, Regional Disparities, and Dynamic Distribution Evolution in China from the Perspective of Sustainable Development," Agriculture, MDPI, vol. 13(7), pages 1-47, July.
    7. Linlin Fu & Jiajun Min & Cheng Luo & Xiaohong Mao & Ziqi Liu, 2024. "The Impact of Digitalization on Agricultural Green Development: Evidence from China’s Provinces," Sustainability, MDPI, vol. 16(21), pages 1-18, October.
    8. Lingui Qin & Yan Zhang & Yige Wang & Xinning Pan & Zhe Xu, 2024. "Research on the Impact of Digital Green Finance on Agricultural Green Total Factor Productivity: Evidence from China," Agriculture, MDPI, vol. 14(7), pages 1-23, July.
    9. Feng Ye & Zhongna Yang & Mark Yu & Susan Watson & Ashley Lovell, 2023. "Can Market-Oriented Reform of Agricultural Subsidies Promote the Growth of Agricultural Green Total Factor Productivity? Empirical Evidence from Maize in China," Agriculture, MDPI, vol. 13(2), pages 1-20, January.
    10. Danni Lu & Xinhuan Zhang & Degang Yang & Shubao Zhang, 2025. "What Affects Agricultural Green Total Factor Productivity in China? A Configurational Perspective Based on Dynamic Fuzzy-Set Qualitative Comparative Analysis," Agriculture, MDPI, vol. 15(2), pages 1-25, January.
    11. Hu, Yuanhong & Liu, Jing & Zhang, Shuyu & Liu, Yuxin & Xu, Haixin & Liu, Pengling, 2024. "New mechanisms for increasing agricultural total factor productivity: Analysis of the regional effects of the digital economy," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 766-785.
    12. Anca Antoaneta Vărzaru, 2025. "Digital Revolution in Agriculture: Using Predictive Models to Enhance Agricultural Performance Through Digital Technology," Agriculture, MDPI, vol. 15(3), pages 1-31, January.
    13. Liu Wang & Guiyu Zhao, 2025. "A Study on the Impact of New Urbanisation on Green Total Factor Productivity in Agriculture in Jilin Province," Sustainability, MDPI, vol. 17(5), pages 1-21, February.
    14. Mei Zhang & Hanye Zhang & Yun Deng & Chuanqi Yi, 2024. "Effects of Conservation Tillage on Agricultural Green Total Factor Productivity in Black Soil Region: Evidence from Heilongjiang Province, China," Land, MDPI, vol. 13(8), pages 1-23, August.
    15. Feng Ye & Lang Wang & Amar Razzaq & Ting Tong & Qing Zhang & Azhar Abbas, 2023. "Policy Impacts of High-Standard Farmland Construction on Agricultural Sustainability: Total Factor Productivity-Based Analysis," Land, MDPI, vol. 12(2), pages 1-13, January.
    16. Li, Hai-ling & Zhu, Xue-hong & Chen, Jin-yu & Jiang, Fei-tao, 2019. "Environmental regulations, environmental governance efficiency and the green transformation of China's iron and steel enterprises," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    17. Khezrimotlagh, Dariush & Kaffash, Sepideh & Zhu, Joe, 2022. "U.S. airline mergers’ performance and productivity change," Journal of Air Transport Management, Elsevier, vol. 102(C).
    18. Cooray, Arusha, 2011. "The role of the government in financial sector development," Economic Modelling, Elsevier, vol. 28(3), pages 928-938, May.
    19. Zhao, Mingxuan & Lv, Lianhong & Wu, Jing & Wang, Shen & Zhang, Nan & Bai, Zihan & Luo, Hong, 2022. "Total factor productivity of high coal-consuming industries and provincial coal consumption: Based on the dynamic spatial Durbin model," Energy, Elsevier, vol. 251(C).
    20. Campbell, Randall C. & Nagel, Gregory L., 2016. "Private information and limitations of Heckman's estimator in banking and corporate finance research," Journal of Empirical Finance, Elsevier, vol. 37(C), pages 186-195.

    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:gam:jsusta:v:16:y:2024:i:24:p:10944-:d:1543201. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.