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Research on the Effect of Rural Inclusive Financial Ecological Environment on Rural Household Income in China

Author

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  • Heping Ge

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Lianzhen Tang

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Xiaojun Zhou

    (School of Business, Jiangsu Open University, Nanjing 210005, China)

  • Decai Tang

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China
    China Institute of Manufacturing Development, Nanjing University of Information Science & Technology, Nanjing 210044, China)

  • Valentina Boamah

    (School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China)

Abstract

After a long struggle against poverty, the problem of absolute poverty among Chinese rural residents has been solved, but the problem of relative poverty still exists. With digitalization, the ecological environment of rural inclusive finance has been optimized. This paper empirically tests the individual fixed-effect model and finds that digital inclusive finance has a positive income-increasing effect on rural residents. Wage income, operating income, and transfer income among the income types undergo a certain degree of promotion, while property income is affected to the contrary. In addition, digital inclusive finance has the same effect on farmers’ income increases in the east and central regions of China. However, it has a slightly smaller impact on farmers in the west. This paper uses a spatial econometric model and finds that promoting the development of local digital inclusive finance will enhance the income level of local farmers and increase the income of neighboring farmers. Therefore, this paper proposes to speed up the development of digital inclusive finance, optimize the rural financial ecological environment, strengthen government supervision and other recommendations, further enhance farmers’ income, and achieve common prosperity.

Suggested Citation

  • Heping Ge & Lianzhen Tang & Xiaojun Zhou & Decai Tang & Valentina Boamah, 2022. "Research on the Effect of Rural Inclusive Financial Ecological Environment on Rural Household Income in China," IJERPH, MDPI, vol. 19(4), pages 1-16, February.
    • Handle: RePEc:gam:jijerp:v:19:y:2022:i:4:p:2486-:d:754814
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    References listed on IDEAS

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    Cited by:

    1. Mingzhao Xiong & Wenqi Li & Brian Sheng Xian Teo & Jaizah Othman, 2022. "Can China’s Digital Inclusive Finance Alleviate Rural Poverty? An Empirical Analysis from the Perspective of Regional Economic Development and an Income Gap," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    2. PU, Zhengning & FEI, Jinhua, 2022. "The impact of digital finance on residential carbon emissions: Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 515-527.
    3. 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.
    4. Shang, Rui, 2023. "Divide or dividend: How digital finance impacts educational equality," Finance Research Letters, Elsevier, vol. 55(PA).

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