Can Digital Finance Promote Rice Production? Evidence from Sichuan Province, China

Wenjing Li, Gege Lin, Qingqing Dou, Abbas Ali Chandio, Shahbaz Ali Larik and Yan Liu ()
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Wenjing Li: College of Economics, Sichuan Agricultural University, Chengdu 611130, China
Gege Lin: College of Economics, Sichuan Agricultural University, Chengdu 611130, China
Qingqing Dou: College of Economics, Sichuan Agricultural University, Chengdu 611130, China
Abbas Ali Chandio: College of Economics, Sichuan Agricultural University, Chengdu 611130, China
Shahbaz Ali Larik: College of Economics, Sichuan Agricultural University, Chengdu 611130, China
Yan Liu: College of Economics, Sichuan Agricultural University, Chengdu 611130, China

Agriculture, 2024, vol. 14, issue 6, 1-22

Abstract: The rapid development of digital finance has effectively reduced financial challenges in rural regions and created new prospects for agricultural production. This article examines the impact of digital financial development on rice production in Sichuan Province using the 2011–2021 Peking University Digital Financial Inclusion Index and data from 20 prefecture-level cities, as well as a fixed effects model. The mechanism of action is also discussed. The findings reveal that the advancement of digital finance plays an important role in boosting the expansion of rice production, and that digital finance influences rice output by increasing farmers’ willingness to participate in insurance and increasing the availability of credit. A heterogeneity analysis reveals that digital finance has a substantial effect on mountainous and economically poor areas. As a result, this article suggests that the breadth and depth of usage of rural digital finance, as well as the development of rural digital financial services in underdeveloped areas, should be expanded.

Keywords: digital finance; agricultural output; mechanism of action (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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