The Impact of Digital Finance Usage on Farmers' Agricultural Investment and Its Mechanism of Action
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The Impact of Digital Finance Usage on Farmers' Agricultural Investment and Its Mechanism of Action
MA Yafei1, MI Yunsheng1, MA Dingchou2, LI Deli1
1. School of Economic and Management, South China Agricultural University, Guangzhou 510642, China; 2. College of Finance & Economics, Gansu Agricultural University, Lanzhou 730070, China
Abstract Using large-sample household survey data from across China in 2021, this study constructs atheoretical analytical framework of “digital finance usage-transmission mechanism-agricultural investment” to empirically examine the impact of digital finance usage on farmers' agricultural investment and its underlying mechanisms. The results show that the use of digital finance has a significant promoting effect on agriculturalinvestment by farmers. After endogeneity analysis and robustness tests, the above conclusion still holds.The mechanism test reveals that easing financing constraints, broadening information access channels,enhancing financial literacy and raising risk preference levels are the important mechanisms through which the use of digital finance promotes agricultural investment by farmers. Further analysis indicates that digital finance usage significantly boosts both general and specific agricultural investments, with a stronger impact on the latter. Moreover, the impact of digital finance usage on farmers' agricultural investment exhibits a pronounced Matthew effect. Based on above findings, it is suggested that the agricultural digital financial service system be furtherimproved and the financial literacy of farmers be strengthened.
MA Yafei,MI Yunsheng,MA Dingchou et al. The Impact of Digital Finance Usage on Farmers' Agricultural Investment and Its Mechanism of Action. Economic Survey, 2025, 42(6): 031.
2025, Vol. 42 
