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Effects of Farmers’ Participation in Inclusive Finance on Their Vulnerability to Poverty: Evidence from Qinba Poverty-Stricken Area in China

Author

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  • Jinmian Han
  • Jiaqi Wang
  • Xiaoqiang Ma

Abstract

China’s new poverty alleviation strategy has been focusing on the 14 undeveloped poverty-stricken areas including Qinba, which faces frequent natural disasters, fragile ecological environment, and high incidence of poverty. With the government initiation, farmers in Qinba have participated in inclusive financial services. Based on 587 rural household field survey data in Qinba area, this article examines farmers’ participation level in inclusive finance. It uses the VEP model to measure the vulnerability to poverty. Then it empirically analyzes the effects of farmers’ participation in inclusive finance on their vulnerability to poverty. The study finds that: first, inclusive finance impacts farmers’ risk coping ability, thus affecting the vulnerability to poverty. Second, farmers’ participation level of savings, micro-credit, and commercial insurance is 48.55%, 17.89%, and 12.44%, respectively. Third, farmers’ participation in savings and commercial insurance reduces their vulnerability by 0.05 and 0.126, while micro-credit does a not have a significantly positive impact. Last, it puts forward the policy implications.

Suggested Citation

  • Jinmian Han & Jiaqi Wang & Xiaoqiang Ma, 2019. "Effects of Farmers’ Participation in Inclusive Finance on Their Vulnerability to Poverty: Evidence from Qinba Poverty-Stricken Area in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(5), pages 998-1013, April.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:5:p:998-1013
    DOI: 10.1080/1540496X.2018.1523789
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    Citations

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    Cited by:

    1. Shuangming Yin & Xiaojuan Chen & Xiangyu Zhou & Chao Chen & Jianxu Liu, 2023. "Effect of Micro-Credit for Poverty Alleviation on Income Growth and Poverty Alleviation—Empirical Evidence from Rural Areas in Hebei, China," Agriculture, MDPI, vol. 13(5), pages 1-17, May.
    2. Pengju Liu & Yitong Zhang & Shengqi Zhou, 2023. "Has Digital Financial Inclusion Narrowed the Urban–Rural Income Gap? A Study of the Spatial Influence Mechanism Based on Data from China," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    3. Zhengjie Zhang & Jiahao Song & Caixia Yan & Dingde Xu & Wei Wang, 2022. "Rural Household Differentiation and Poverty Vulnerability: An Empirical Analysis Based on the Field Survey in Hubei, China," IJERPH, MDPI, vol. 19(8), pages 1-15, April.
    4. Oladapo, Gidigbi Matthew, 2021. "Specialised Bank’s Credit Provision in Nigeria: Implication on Poverty Reduction," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.
    5. Dong, Jiajia & Dou, Yue & Jiang, Qingzhe & Zhao, Jun, 2022. "Can financial inclusion facilitate carbon neutrality in China? The role of energy efficiency," Energy, Elsevier, vol. 251(C).
    6. Jianling Qi & Huanjiao Li & Wenlong Li & Jing Jin & Feng Ye, 2024. "The Influence of Digital Skills on Farm Households’ Vulnerability to Relative Poverty: Implications for the Sustainability of Farmers’ Livelihoods," Sustainability, MDPI, vol. 16(19), pages 1-18, September.
    7. Muhammad Abrar ul Haq & Jayendira P. Sankar & Farheen Akram & Muhammad Siddique, 2022. "The role of farmers’ attitude towards their resources to alleviate rural household poverty," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2133-2155, August.
    8. Dong, Kangyin & Taghizadeh-Hesary, Farhad & Zhao, Jun, 2022. "How inclusive financial development eradicates energy poverty in China? The role of technological innovation," Energy Economics, Elsevier, vol. 109(C).
    9. Lee, Chien-Chiang & Wang, Chih-Wei & Ho, Shan-Ju & Wu, Ting-Pin, 2021. "The impact of natural disaster on energy consumption: International evidence," Energy Economics, Elsevier, vol. 97(C).
    10. Du, Yanan & Wang, Qingxi & Zhou, Jianping, 2023. "How does digital inclusive finance affect economic resilience: Evidence from 285 cities in China," International Review of Financial Analysis, Elsevier, vol. 88(C).
    11. Shasha Zhang & Qian Liu & Xungang Zheng & Juan Sun, 2023. "Internet Use and the Poverty Vulnerability of Rural Households: From the Perspective of Risk Response," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    12. Xiang Yin & Zhiyi Meng & Xin Yi & Yong Wang & Xia Hua, 2021. "Are “Internet+” tactics the key to poverty alleviation in China’s rural ethnic minority areas? Empirical evidence from Sichuan Province," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-19, December.
    13. Min Zhao & Peipei Chu, 2022. "Does the Inclusive Financial Policy Innovation Promote Rural Revitalization—A Synthetic Control Test of a National Pilot Zone for Inclusive Financial Reform," Sustainability, MDPI, vol. 14(23), pages 1-21, November.
    14. Heping Ge & Lianzhen Tang & Xiaojun Zhou & Decai Tang & Valentina Boamah, 2022. "Research on the Effect of Rural Inclusive Financial Ecological Environment on Rural Household Income in China," IJERPH, MDPI, vol. 19(4), pages 1-16, February.

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