Agricultural transformation in the digital age: Digital inclusive finance and the development of new agricultural business entities

Fangfang Su, Sumin Tao and Ruiyao Ying

Finance Research Letters, 2025, vol. 72, issue C

Abstract: Capital and land are two critical production factors for the development of new agricultural business entities. However, existing research has paid relatively little attention to the impact of capital on the development of these entities. This paper integrates survey data from the Chinese Thousand Villages Survey (CTVS) with the Digital Financial Inclusion Index to examine the effects of digital financial inclusion on the development of new agricultural business entities. The study finds that the improvement in digital financial inclusion significantly promotes the development of new agricultural business entities, and digital inclusive finance has a significantly positive effect on family farms, while it does not exert a significant influence on the development of specialized large households or farmers' cooperatives. The mechanism analysis reveals that digital financial inclusion alleviates farmers' credit constraints and increases the availability of both formal and informal financial services, thus fostering the development of new agricultural business entities.

Keywords: Digital financial inclusion; New agricultural business entities; Credit constraints; Financial Service Accessibility; Agricultural Transformation (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:72:y:2025:i:c:s154461232401643x

DOI: 10.1016/j.frl.2024.106614

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