Analysis of the Impact of Digital Inclusive Finance on Farmers’ Income Growth - An Empirical Analysis Based on 31 Provinces in China

Digital inclusive finance can alleviate financial hardship in rural areas and is an essential way for finance to consolidate the achievements of poverty eradication, promote rural revitalization, and facilitate the attainment of shared prosperity. This paper selects panel data from 31 provinces in China between 2016 and 2020 and investigates the impact of digitally inclusive finance on the total income of farm households and their various income sources. The results indicate that, first, digital inclusive finance has a significant impact on agricultural households’ total income. Second, digital inclusive finance has a boosting effect on farmers’ wage income, production and business income, property income and transfer income. The impact on transfer income is the most significant. Thirdly, the effects of digital inclusive finance on different sources of regions differ between eastern, central and western regions. The paper concludes with policy recommendations for the development of digitally inclusive finance to increase the income of Chinese farmers in various regions.