Rural residents' income is one of the core issues of rural economic development, and digital financial inclusion is one of the important influencing factors of rural residents' income. Especially under the background of the implementation of digital financial technology, the relationship between the two has become more complex. Based on the panel data set of 1624 counties in Chinese mainland in the past 2014–2019 years, the paper uses panel regression models to study the impact of digital financial inclusion on rural residents' income. Further, by analyzing the industrial structure, education level and financial development level, the following conclusions are drawn. First, digital financial inclusion significantly promotes the increase of rural residents' income, but there are differences in regional level and different quantiles of rural residents' income. At the regional level, the promotion of control effect at the provincial level is stronger than that at the county level; in different quantiles of residents' income, with the increase of residents' income quantile, the promoting effect is gradually enhanced. Second, the heterogeneous impact of digital financial inclusion on rural residents' income is reflected in three aspects: regional development, education level and financial development level. Third, industrial structure, education level and financial development level will enhance the promotion effect of digital financial inclusion on rural residents' income, but there are significant differences in the intensity of the regulatory effect of the three variables.
Citation: Tinghui Li, Jiehua Ma. Does digital finance benefit the income of rural residents? A case study on China[J]. Quantitative Finance and Economics, 2021, 5(4): 664-688. doi: 10.3934/QFE.2021030
Rural residents' income is one of the core issues of rural economic development, and digital financial inclusion is one of the important influencing factors of rural residents' income. Especially under the background of the implementation of digital financial technology, the relationship between the two has become more complex. Based on the panel data set of 1624 counties in Chinese mainland in the past 2014–2019 years, the paper uses panel regression models to study the impact of digital financial inclusion on rural residents' income. Further, by analyzing the industrial structure, education level and financial development level, the following conclusions are drawn. First, digital financial inclusion significantly promotes the increase of rural residents' income, but there are differences in regional level and different quantiles of rural residents' income. At the regional level, the promotion of control effect at the provincial level is stronger than that at the county level; in different quantiles of residents' income, with the increase of residents' income quantile, the promoting effect is gradually enhanced. Second, the heterogeneous impact of digital financial inclusion on rural residents' income is reflected in three aspects: regional development, education level and financial development level. Third, industrial structure, education level and financial development level will enhance the promotion effect of digital financial inclusion on rural residents' income, but there are significant differences in the intensity of the regulatory effect of the three variables.
| [1] |
Aisaiti G, Liu L, Xie J, et al. (2019) An empirical analysis of rural farmers' financing intention of inclusive finance in China The moderating role of digital finance and social enterprise embeddedness. Ind Manage Data Syst 119: 1535–1563. doi: 10.1108/IMDS-08-2018-0374
|
| [2] |
Ao G, Liu Q, Qin L, et al. (2021) Organization model, vertical integration, and farmers' income growth: Empirical evidence from large-scale farmers in Lin'an, China. PLoS One 16: e0252482. doi: 10.1371/journal.pone.0252482
|
| [3] | Chen B, Ni Y (2018) Study on the Influence of Inclusive Finance Development Level on Urban-Rural Income Gap in Guizhou Province. Proceedings of the 3rd International Seminar on Education Innovation and Economic Management (SEIEM 2018). Available from: https://doi.org/10.2991/seiem-18.2019.144. |
| [4] | Fan Q, Wang X (2013) An Empirical Analysis of the Relationship between the Residents's Education Years and Income, In: Q. Luo & T. Zhang (Eds. ), 2013 International Conference on Education and Educational Research, 2: 524–528. |
| [5] |
Geng Z, He G (2021) Digital financial inclusion and sustainable employment: Evidence from countries along the belt and road. Borsa Istan Rev 21: 307–316. doi: 10.1016/j.bir.2021.04.004
|
| [6] | Guo F, Wang J, Wang F, et al. (2020) Measuring China's digital financial inclusion: Index Compilation and Spatial Characteristics. China Econ Q 19: 1401–1418. |
| [7] |
Gorelick J, Walmsley N (2020) The greening of municipal infrastructure investments: technical assistance, instruments, and city champions. Green Financ 2: 114–134. doi: 10.3934/GF.2020007
|
| [8] |
Han W, Wei Y, Cai J, et al. (2021) Rural nonfarm sector and rural residents' income research in China. An empirical study on the township and village enterprises after ownership reform (2000–2013). J Rural Stud 82: 161–175. doi: 10.1016/j.jrurstud.2021.01.001
|
| [9] |
Kawabata T (2020) Private governance schemes for green bond standard: influence on public authorities' policy making. Green Financ 2: 35–54. doi: 10.3934/GF.2020003
|
| [10] |
Kemfert C, Schmalz S (2019) Sustainable finance: political challenges of development and implementation of framework conditions. Green Financ 1: 237–248. doi: 10.3934/GF.2019.3.237
|
| [11] |
Li J, Wu Y, Xiao JJ (2020) The impact of digital finance on household consumption: Evidence from China. Econ Model 86: 317–326. doi: 10.1016/j.econmod.2019.09.027
|
| [12] | Li K, Zhao H, Liu X (2017) The Impact of Rural Financial Development on the Income Gap of Rural Residents in China: An Empirical Analysis Based on Semi-parametric Additive Model, In: Y. Hou & W. Zheng (Eds. ), Proceedings of the 2017 3rd International Conference on Economics, Social Science, Arts, Education and Management Engineering, 119: 1650–1655. |
| [13] |
Li T, Liao G (2020a) The Heterogeneous Impact of Financial Development on Green Total Factor Productivity. Front Energy Res 8: 29. doi: 10.3389/fenrg.2020.00029
|
| [14] |
Li T, Li X (2020b) Does structural deceleration happen in China? Evidence from the effect of industrial structure on economic growth quality. Natl Account Rev 2: 155–173. doi: 10.3934/NAR.2020009
|
| [15] | Li W, Wu P, Destech Publicat I (2018) Rural Financial Development, Agricultural Fiscal Investment and Rural Residents' Income, In 2018 International Conference on Economic Management Science and Financial Innovation, 198–204. |
| [16] | Li Y (2020) Empirical analysis of the impact of financial development on the income gap between urban and rural residents in the context of large data using fuzzy Kmeans clustering algorithm. Int J Electr Eng Educ, 0020720920936837. |
| [17] |
Li Y, Zhong Q, Xie L (2020) Has Inclusive Finance Narrowed the Income Gap between Urban and Rural Areas? An Empirical Analysis Based on Coastal and Noncoastal Regions' Panel Data. J Coastal Res, 305–308. doi: 10.2112/SI106-071.1
|
| [18] |
Li Z, Chen L, Dong H (2020a) What are bitcoin market reactions to its-related events? Int Rev Econ Financ 73: 1–10. doi: 10.1016/j.iref.2020.12.020
|
| [19] | Li Z, Dong H, Floros C, et al. (2021) Re-examining Bitcoin Volatility: A CAViaR-based Approach. Emerg Mark Financ Trade, 1–19. |
| [20] |
Li Z, Liao G, Albitar K (2019) Does corporate environmental responsibility engagement affect firm value? The mediating role of corporate innovation. Bus Strat Environ 29: 1045–1055. doi: 10.1002/bse.2416
|
| [21] |
Li Z, Wang Y, Huang Z (2020b) Risk connectedness heterogeneity in the cryptocurrency markets. Front Phys 8: 243. doi: 10.3389/fphy.2020.00243
|
| [22] | Li Z, Zou F, Tan Y, et al. (2021) Does Financial Excess Support Land Urbanization-An Empirical Study of Cities in China. Land 10. |
| [23] | Liu G (2009) Analysis of Economic Factors on Restricting Consumption of Rural Residents in China, Proceedings of 2009 International Conference on Management Science and Engineering, 1016–1020. |
| [24] |
Liu T, He G, Turvey CG (2021) Inclusive Finance, Farm Households Entrepreneurship, and Inclusive Rural Transformation in Rural Poverty-stricken Areas in China. Emerg Mark Financ Trade 57: 1929–1958. doi: 10.1080/1540496X.2019.1694506
|
| [25] | Liu X, Mu Q, ChenY (2021) Reform and Improvement in China's Rural Financial Sector Based on Internet Technology. Paper presented at the 2021 2nd International Conference on E-Commerce and Internet Technology (ECIT). |
| [26] | Liu Y, Li Z, Xu M (2019) The Influential Factors of Financial Cycle Spillover: Evidence from China. Emerg Mark Financ Tr, 1–15. |
| [27] |
Liu Y, Liu C, Zhou M (2021) Does digital financial inclusion promote agricultural production for rural households in China? Research based on the Chinese family database (CFD). China Agric Econ Rev 13: 475–494. doi: 10.1108/CAER-06-2020-0141
|
| [28] | Liu Z, Wei Y, Li Q, et al. (2021) The Mediating Role of Social Capital in Digital Information Technology Poverty Reduction an Empirical Study in Urban and Rural China. Land 10. |
| [29] |
Luo Y, Peng Y, Zeng L (2020) Digital financial capability and entrepreneurial performance. Int Rev Econ Financ 76: 55–74. doi: 10.1016/j.iref.2021.05.010
|
| [30] |
Matei I (2020) Is financial development good for economic growth? Empirical insights from emerging European countries. Quant Financ Econ 4: 653–678. doi: 10.3934/QFE.2020030
|
| [31] |
Pan H, Liu Y, Gao H (2012) Impact of agricultural industrial structure adjustment on energy conservation and income growth in Western China: a statistical study. Ann Oper Res 228: 23–33. doi: 10.1007/s10479-012-1291-2
|
| [32] | Rahman MM, Guan F, Ara LA (2019) Nonlinear Dynamics in the Finance-Inequality Nexus in China-CHNS Data. Sustainability 11. |
| [33] |
Ren B, Li L, Zhao H, et al. (2018) The Financial Exclusion in The Development of Digital Finance— A Study Based on Survey Data in The Jingjinji Rural Area. Singap Econ Rev 63: 65–82. doi: 10.1142/S0217590818500017
|
| [34] | Song Q, Li J, Wu Y, et al. (2020) Accessibility of financial services and household consumption in China: Evidence from micro data. North Am J Econ Financ, 53. |
| [35] |
Sukharev OS (2020) Structural analysis of income and risk dynamics in models of economic growth. Quant Financ Econ 4: 1–18. doi: 10.3934/QFE.2020001
|
| [36] | Tan Y, Yuan Y (2013) Agricultural Insurance and the Urban-Rural Income Gap—Based on a Dynamic Panel Model of the GMM Estimation, Proceedings of 2013 China International Conference on Insurance and Risk Management, 215–224. |
| [37] | Tong G, Li C (2011) An Empirical Analysis on Effecting Factor of Urban-Rural Income Disparity in Heilongjiang Province, In: M. L. Dai (Ed. ), Innovative Computing and Information, 2011, Pt Ii 232: 499–509. |
| [38] |
Wang J, Hu Y (2018) The impact of trade liberalization on poverty reduction in rural China. China Agric Econ Rev 10: 683–694. doi: 10.1108/CAER-01-2018-0019
|
| [39] | Wang X, Chen M, He X, et al. (2018) Credit Constraint, Credit Adjustment, and Sustainable Growth of Farmers' Income. Sustainability 10. |
| [40] | Wang X, He G (2020) digital financial inclusion and Farmers' Vulnerability to Poverty: Evidence from Rural China. Sustainability 12. |
| [41] | Wang X, Liu L (2016) How County-Level Agricultural Loans and Fiscal Expenditure Impact Rural Residents' Income in China-An Empirical Study of the Hierarchical Effect by Quantile Regression. Front Econ China 11: 302–320. |
| [42] |
Xie W, Wang T, Zhao X (2020) Does Digital financial inclusion Promote Coastal Rural Entrepreneurship? J Coastal Res, 240–245. doi: 10.2112/SI103-052.1
|
| [43] | Yang M, Wang S (2012) Empirical Study on Financial Development and the Income of Urban Residents in China—Example as Our Countries Data. Contemp Innovation Dev Stat Sci 2012: 684–689. |
| [44] | Yang Y, Fu C (2019) Inclusive Financial Development and Multidimensional Poverty Reduction: An Empirical Assessment from Rural China. Sustainability 11. |
| [45] | Yu LL, Zhao DY, Xue ZH, et al. (2020) Research on the use of digital finance and the adoption of green control techniques by family farms in China. Technol Society 62. |
| [46] | Yu N, Wang Y (2021) Can Digital financial inclusion Narrow the Chinese Urban–Rural Income Gap? The Perspective of the Regional Urban–Rural Income Structure. Sustainability 13. |
| [47] |
Zhang H, Xiong X (2019) Is financial education an effective means to improve financial literacy? Evidence from rural China. Agric Financ Rev 80: 305–320. doi: 10.1108/AFR-03-2019-0027
|
| [48] | Zhao P, Yu Z (2021) Rural poverty and mobility in China: A national-level survey. J Transp Geogr 93. |
| [49] | Zhong J, Li T (2020) Impact of Financial Development and Its Spatial Spillover Effect on Green Total Factor Productivity: Evidence from 30 Provinces in China. Math Probl Eng, 1–11. |
| [50] | Zhou Y, She D, Cai Y (2015) An Empirical Study of the Effect of Financial Development on the Urban-Rural Residents Income Gap in China, Proceedings of 2015 International Symposium—Open Economy & Financial Engineering, 67–71. |
Tinghui Li, Jiehua Ma. Does digital finance benefit the income of rural residents? A case study on China[J]. Quantitative Finance and Economics, 2021, 5(4): 664-688. doi: 10.3934/QFE.2021030
DownLoad: