IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v13y2023i7p1429-d1197831.html
   My bibliography  Save this article

Can Digital Finance Improve China’s Agricultural Green Total Factor Productivity?

Author

Listed:
  • Huiquan Li

    (School of Business Administration, South China University of Technology, Guangzhou 510641, China
    These authors contributed equally to this work.)

  • Qingning Lin

    (Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences, Beijing 100081, China
    These authors contributed equally to this work.)

  • Yan Wang

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

  • Shiping Mao

    (Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences, Beijing 100081, China)

Abstract

The improvement of agricultural green total factor productivity (AGTFP) is crucial to achieve sustainable agricultural development. By matching China’s provincial digital financial inclusion index and agricultural production data from 2011 to 2020, and on the basis of using the DEA–Malmquist productivity index to measure AGTFP, the fixed effect model and Mesomeric effect model are used to empirically test the impact and mechanism of digital financial development on China’s AGTFP. Our research found that from 2011 to 2020, China experienced consistent improvement in AGTFP, which was largely attributed to advancements in technology. Interestingly, the AGTFP in non-major grain-producing areas surpassed that in major grain producing areas. Additionally, digital finance has proven to be an effective tool in boosting China’s AGTFP, the coverage subdimension, the depth of use subdimension and the digitization subdimension all significantly promote the AGTFP. Digital finance can significantly promote the efficiency and progress of agricultural green technology, which shows that digital finance promotes AGTFP in a “dual wheel” driven manner. However, the impact of digital finance on agricultural green technology efficiency and progress is more pronounced in major grain-producing areas than in non-major areas. The impact mechanism demonstrates that digital finance has the potential to stimulate AGTFP in two key ways. First, it can improve the mismatch of agricultural production resources; second, it can promote agricultural technology innovation. Therefore, it is necessary to further promote the rapid development of digital finance, optimize the rational allocation of financial resources, and formulate tailored digital finance development strategies to promote green development of agriculture.

Suggested Citation

  • Huiquan Li & Qingning Lin & Yan Wang & Shiping Mao, 2023. "Can Digital Finance Improve China’s Agricultural Green Total Factor Productivity?," Agriculture, MDPI, vol. 13(7), pages 1-19, July.
    • Handle: RePEc:gam:jagris:v:13:y:2023:i:7:p:1429-:d:1197831
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/13/7/1429/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/13/7/1429/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pan, Wenrong & Xie, Tao & Wang, Zhuwang & Ma, Lisha, 2022. "Digital economy: An innovation driver for total factor productivity," Journal of Business Research, Elsevier, vol. 139(C), pages 303-311.
    2. Uras, R.B. & Wang, P., 2014. "Techniques Choice, Misallocation and Total Factor Productivity," Other publications TiSEM 5a3d8436-c929-49f3-a990-3, Tilburg University, School of Economics and Management.
    3. Eric LABAYE & Jaana REMES, 2015. "Digital Technologies and the Global Economy's Productivity Imperative," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(100), pages 47-64, 4th quart.
    4. Jenny C. Aker, 2011. "Dial “A” for agriculture: a review of information and communication technologies for agricultural extension in developing countries," Agricultural Economics, International Association of Agricultural Economists, vol. 42(6), pages 631-647, November.
    5. Tim J. Coelli & D. S. Prasada Rao, 2005. "Total factor productivity growth in agriculture: a Malmquist index analysis of 93 countries, 1980–2000," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 115-134, January.
    6. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1403-1448.
    7. Hsu, Po-Hsuan & Tian, Xuan & Xu, Yan, 2014. "Financial development and innovation: Cross-country evidence," Journal of Financial Economics, Elsevier, vol. 112(1), pages 116-135.
    8. Zhanqiang Zhou & Yuehua Zhang & Zhongbao Yan, 2022. "Will Digital Financial Inclusion Increase Chinese Farmers’ Willingness to Adopt Agricultural Technology?," Agriculture, MDPI, vol. 12(10), pages 1-21, September.
    9. Li, Chengming & Wang, Yilin & Zhou, Zhihan & Wang, Zeyu & Mardani, Abbas, 2023. "Digital finance and enterprise financing constraints: Structural characteristics and mechanism identification," Journal of Business Research, Elsevier, vol. 165(C).
    10. Bronwyn H. Hall & Pietro Moncada-Paternò-Castello & Sandro Montresor & Antonio Vezzani, 2016. "Financing constraints, R&D investments and innovative performances: new empirical evidence at the firm level for Europe," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(3), pages 183-196, April.
    11. Jingdong Li & Qingning Lin, 2022. "Can the Adjustment of China’s Grain Purchase and Storage Policy Improve Its Green Productivity?," IJERPH, MDPI, vol. 19(10), pages 1-24, May.
    12. Gong, Binlei, 2020. "Agricultural productivity convergence in China," China Economic Review, Elsevier, vol. 60(C).
    13. Mingyong Hong & Mengjie Tian & Ji Wang, 2022. "Digital Inclusive Finance, Agricultural Industrial Structure Optimization and Agricultural Green Total Factor Productivity," Sustainability, MDPI, vol. 14(18), pages 1-18, September.
    14. Li Wang & Jinyang Tang & Mengqian Tang & Mengying Su & Lili Guo, 2022. "Scale of Operation, Financial Support, and Agricultural Green Total Factor Productivity: Evidence from China," IJERPH, MDPI, vol. 19(15), pages 1-18, July.
    15. Yang Shen & Xiaoyang Guo & Xiuwu Zhang, 2023. "Digital Financial Inclusion, Land Transfer, and Agricultural Green Total Factor Productivity," Sustainability, MDPI, vol. 15(8), pages 1-25, April.
    16. Jenny C. Aker, 2011. "Dial “A” for Agriculture: A Review of Information and Communication Technologies for Agricultural Extension in Developing Countries - Working Paper 269," Working Papers 269, Center for Global Development.
    17. Uras, Burak R., 2014. "Corporate financial structure, misallocation and total factor productivity," Journal of Banking & Finance, Elsevier, vol. 39(C), pages 177-191.
    18. Ozili, Peterson K, 2021. "Digital finance, green finance and social finance: is there a link?," MPRA Paper 110151, University Library of Munich, Germany.
    19. Benhabib, Jess & Spiegel, Mark M, 2000. "The Role of Financial Development in Growth and Investment," Journal of Economic Growth, Springer, vol. 5(4), pages 341-360, December.
    20. Xiuxiu Jiang & Xia Wang & Jia Ren & Zhimin Xie, 2021. "The Nexus between Digital Finance and Economic Development: Evidence from China," Sustainability, MDPI, vol. 13(13), pages 1-17, June.
    21. Xinxin Zhou & Tong Chen & Bangbang Zhang, 2023. "Research on the Impact of Digital Agriculture Development on Agricultural Green Total Factor Productivity," Land, MDPI, vol. 12(1), pages 1-20, January.
    22. Juan Aparicio & José Ruiz & Inmaculada Sirvent, 2007. "Closest targets and minimum distance to the Pareto-efficient frontier in DEA," Journal of Productivity Analysis, Springer, vol. 28(3), pages 209-218, December.
    23. Zhuohui Yu & Shiping Mao & Qingning Lin, 2022. "Has China’s Carbon Emissions Trading Pilot Policy Improved Agricultural Green Total Factor Productivity?," Agriculture, MDPI, vol. 12(9), pages 1-21, September.
    24. Junhao Zhong & Tinghui Li, 2020. "Impact of Financial Development and Its Spatial Spillover Effect on Green Total Factor Productivity: Evidence from 30 Provinces in China," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-11, January.
    25. Zhuohui Yu & Qingning Lin & Changli Huang, 2022. "Re-Measurement of Agriculture Green Total Factor Productivity in China from a Carbon Sink Perspective," Agriculture, MDPI, vol. 12(12), pages 1-26, November.
    26. Heping Ge & Bowen Li & Decai Tang & Hao Xu & Valentina Boamah, 2022. "Research on Digital Inclusive Finance Promoting the Integration of Rural Three-Industry," IJERPH, MDPI, vol. 19(6), pages 1-18, March.
    27. Sasidharan, Subash & Jijo Lukose, P.J. & Komera, Surenderrao, 2015. "Financing constraints and investments in R&D: Evidence from Indian manufacturing firms," The Quarterly Review of Economics and Finance, Elsevier, vol. 55(C), pages 28-39.
    28. L. G. Pee, 2016. "Customer co-creation in B2C e-commerce: does it lead to better new products?," Electronic Commerce Research, Springer, vol. 16(2), pages 217-243, June.
    29. Elitsa R Banalieva & Charles Dhanaraj, 2019. "Internalization theory for the digital economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(8), pages 1372-1387, October.
    30. Jian Han & Yanzhi Shen, 2015. "Financial Development and Total Factor Productivity Growth: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(S1), pages 261-274, January.
    31. Ron Adner & Phanish Puranam & Feng Zhu, 2019. "What Is Different About Digital Strategy? From Quantitative to Qualitative Change," Strategy Science, INFORMS, vol. 4(4), pages 253-261, December.
    32. Feng, Suling & Zhang, Rong & Li, Guoxiang, 2022. "Environmental decentralization, digital finance and green technology innovation," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 70-83.
    33. Daniela Gabor & Sally Brooks, 2017. "The digital revolution in financial inclusion: international development in the fintech era," New Political Economy, Taylor & Francis Journals, vol. 22(4), pages 423-436, July.
    34. Vu, Khuong M., 2013. "Information and Communication Technology (ICT) and Singapore’s economic growth," Information Economics and Policy, Elsevier, vol. 25(4), pages 284-300.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Yang & Yang, Shengping & Li, Quan, 2022. "How does the development of digital financial inclusion affect the total factor productivity of listed companies? Evidence from China," Finance Research Letters, Elsevier, vol. 47(PB).
    2. Yang Shen & Xiaoyang Guo & Xiuwu Zhang, 2023. "Digital Financial Inclusion, Land Transfer, and Agricultural Green Total Factor Productivity," Sustainability, MDPI, vol. 15(8), pages 1-25, April.
    3. Yan Liu & Ya Deng & Binyao Peng, 2023. "The Impact of Digital Financial Inclusion on Green and Low-Carbon Agricultural Development," Agriculture, MDPI, vol. 13(9), pages 1-21, September.
    4. Jin, Laiqun & Dai, Jiaying & Jiang, Weijie & Cao, Kairui, 2023. "Digital finance and misallocation of resources among firms: Evidence from China," The North American Journal of Economics and Finance, Elsevier, vol. 66(C).
    5. Kun Wang & Bing Chen & Yuhong Li, 2024. "Technological, process or managerial innovation? How does digital transformation affect green innovation in industrial enterprises?," Economic Change and Restructuring, Springer, vol. 57(1), pages 1-32, February.
    6. Quan Xiao & Yu Wang & Haojie Liao & Gang Han & Yunjie Liu, 2023. "The Impact of Digital Inclusive Finance on Agricultural Green Total Factor Productivity: A Study Based on China’s Provinces," Sustainability, MDPI, vol. 15(2), pages 1-19, January.
    7. Zhuohui Yu & Qingning Lin & Changli Huang, 2022. "Re-Measurement of Agriculture Green Total Factor Productivity in China from a Carbon Sink Perspective," Agriculture, MDPI, vol. 12(12), pages 1-26, November.
    8. Michalô °€ Brzozowski, 2020. "Impact of Credit Market Development and Stability on Productivity: New Evidence from the Industry Level," Annals of Economics and Finance, Society for AEF, vol. 21(1), pages 111-129, May.
    9. Hua Zhang & Ying Li & Hanxiaoxue Sun & Xiaohui Wang, 2023. "How Can Digital Financial Inclusion Promote High-Quality Agricultural Development? The Multiple-Mediation Model Research," IJERPH, MDPI, vol. 20(4), pages 1-19, February.
    10. Pengju Liu & Yitong Zhang & Shengqi Zhou, 2023. "Has Digital Financial Inclusion Narrowed the Urban–Rural Income Gap? A Study of the Spatial Influence Mechanism Based on Data from China," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    11. Emmanuel Olatunbosun Benjamin & Oreoluwa Ola & Hannes Lang & Gertrud Buchenrieder, 2021. "Public-private cooperation and agricultural development in Sub-Saharan Africa: a review of Nigerian growth enhancement scheme and e-voucher program," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(1), pages 129-140, February.
    12. World Bank, 2020. "Sudan Agriculture Value Chain Analysis," World Bank Publications - Reports 34103, The World Bank Group.
    13. George W. Norton & Jeffrey Alwang, 2020. "Changes in Agricultural Extension and Implications for Farmer Adoption of New Practices," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(1), pages 8-20, March.
    14. Chris Knudson & Zack Guido, 2019. "The missing middle of climate services: layering multiway, two-way, and one-way modes of communicating seasonal climate forecasts," Climatic Change, Springer, vol. 157(1), pages 171-187, November.
    15. Rongwu Zhang & Wenqiang Fu & Yingxu Kuang, 2022. "Can Digital Economy Promote Energy Conservation and Emission Reduction in Heavily Polluting Enterprises? Empirical Evidence from China," IJERPH, MDPI, vol. 19(16), pages 1-21, August.
    16. repec:pcz:journl:v:6:y:2012:i:1:p:151-161 is not listed on IDEAS
    17. Feng, Wei & Sun, Shujun & Yuan, Hang, 2023. "Research on the efficiency of factor allocation in the pilot free trade zones," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 727-745.
    18. Anderson Jock R. & Birner Regina & Nagarajan Latha & Naseem Anwar & Pray Carl E., 2021. "Private Agricultural R&D: Do the Poor Benefit?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 19(1), pages 3-14, May.
    19. Sekabira, Haruna & Qaim, Matin, 2017. "Can mobile phones improve gender equality and nutrition? Panel data evidence from farm households in Uganda," Food Policy, Elsevier, vol. 73(C), pages 95-103.
    20. Francesco Aiello & Graziella Bonanno & Stefania P. S. Rossi, 2020. "How firms finance innovation. Further empirics from European SMEs," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 689-714, November.
    21. Kondylis, Florence & Mueller, Valerie, 2012. "Seeing is Believing? Evidence from a Demonstration Plot Experiment in Mozambique:," MSSP working papers 1, International Food Policy Research Institute (IFPRI).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:13:y:2023:i:7:p:1429-:d:1197831. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.