IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v86y2025icp1801-1819.html

Digital financial development, farmers' digital financial behavior, and relative poverty: An empirical analysis based on data from farmers in Yongzhou City

Author

Listed:
  • Zhu, Danyang

Abstract

The development of digital finance has provided new, sustainable technological conditions for improving rural households' affluence and living standards in China. This paper conducts field research on 850 rural households in Yongzhou City, using logit models to empirically analyze the sustainable impact of rural households' digital financial behavior. It examines the magnitude of influence from various factors and explores the impact mechanisms and mediating effects of farmers' digital financial behaviors, specifically focusing on digital payments, internet wealth management, and internet credit. The marginal contributions of this study are: (1) First-hand data from rural Yongzhou, providing accurate, reliable, and practical microdata that better reflect local farmers' ability and willingness to engage in digital financial behavior; (2) Practical classification of explanatory variables based on Yongzhou farmers’ conditions, exploring how income, age, and education level affect farmers' use of digital financial services; (3) Constructing a farmer affluence index system incorporating housing conditions, living standards, and access to public services, and analyzing the mediating effect of relative poverty on digital financial behavior. The findings suggest that household income and education level have positive, sustainable impacts on digital financial behavior, while age has a negative correlation. Factors such as ownership of a commercial house or car have no significant impact. Relative poverty shows a weak negative impact on the use of digital payment but has a small, sustained negative effect on the mediating role of internet lending behavior, with no significant impact observed for internet wealth management behavior. The paper concludes with recommendations to optimize farmers' digital financial behavior from the perspectives of individual farmers, financial institutions, and government support.

Suggested Citation

  • Zhu, Danyang, 2025. "Digital financial development, farmers' digital financial behavior, and relative poverty: An empirical analysis based on data from farmers in Yongzhou City," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 1801-1819.
    • Handle: RePEc:eee:ecanpo:v:86:y:2025:i:c:p:1801-1819
    DOI: 10.1016/j.eap.2025.05.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592625001717
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2025.05.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Xuanming Ji & Kun Wang & He Xu & Muchen Li, 2021. "Has Digital Financial Inclusion Narrowed the Urban-Rural Income Gap: The Role of Entrepreneurship in China," Sustainability, MDPI, vol. 13(15), pages 1-18, July.
    2. Thakor, Anjan, 2020. "Corrigendum to: Fintech and Banking: What Do We Know?," Journal of Financial Intermediation, Elsevier, vol. 43(C).
    3. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2010. "Are Risk Aversion and Impatience Related to Cognitive Ability?," American Economic Review, American Economic Association, vol. 100(3), pages 1238-1260, June.
    4. Badi H. Baltagi, 2021. "Econometric Analysis of Panel Data," Springer Texts in Business and Economics, Springer, edition 6, number 978-3-030-53953-5, January.
    5. Daniel Fernandes & John G. Lynch & Richard G. Netemeyer, 2014. "Financial Literacy, Financial Education, and Downstream Financial Behaviors," Management Science, INFORMS, vol. 60(8), pages 1861-1883, August.
    6. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 522-550, June.
    7. Pedroni, Peter, 2004. "Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis," Econometric Theory, Cambridge University Press, vol. 20(3), pages 597-625, June.
    8. Decerf, Benoit, 2017. "Why not consider that being absolutely poor is worse than being only relatively poor?," Journal of Public Economics, Elsevier, vol. 152(C), pages 79-92.
    9. Yonghu Zhang & Yifeng Zhang, 2024. "The Influence of Digital Literacy on the Phenomenon of Deviation between Farmers’ E-Commerce Sales Willingness and Behavior: Evidence from Rural China," Sustainability, MDPI, vol. 16(7), pages 1-22, April.
    10. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    11. Peterson K. Ozili, 2018. "Impact of digital finance on financial inclusion and stability," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 18(4), pages 329-340, December.
    12. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
    13. Dean Karlan & Aishwarya Lakshmi Ratan & Jonathan Zinman, 2014. "Savings by and for the Poor: A Research Review and Agenda," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 36-78, March.
    14. Dean Karlan & Aishwarya Lakshmi Ratan & Jonathan Zinman, 2014. "Savings by and for the Poor: A Research Review and Agenda," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 36-78, March.
    15. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    16. Jenny C. Aker, 2010. "Information from Markets Near and Far: Mobile Phones and Agricultural Markets in Niger," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 46-59, July.
    17. Feng Guo & Sherry Tao Kong & Jingyi Wang, 2016. "General patterns and regional disparity of internet finance development in China: Evidence from the Peking University Internet Finance Development Index," China Economic Journal, Taylor & Francis Journals, vol. 9(3), pages 253-271, September.
    18. Zhe Liu & Zhenhong Qi & Qingsong Tian & John Stephen Clark & Zeyu Zhang, 2024. "The Impact of Digital Finance on Farmers’ Adoption of Eco-Agricultural Technology: Evidence from Rice-Crayfish Co-Cultivation Technology in China," Agriculture, MDPI, vol. 14(4), pages 1-20, April.
    19. Kim, Dai-Won & Yu, Jung-Suk & Hassan, M. Kabir, 2018. "Financial inclusion and economic growth in OIC countries," Research in International Business and Finance, Elsevier, vol. 43(C), pages 1-14.
    20. Duflo, Esther & Saez, Emmanuel, 2002. "Participation and investment decisions in a retirement plan: the influence of colleagues' choices," Journal of Public Economics, Elsevier, vol. 85(1), pages 121-148, July.
    21. Ozili, Peterson Kitakogelu, 2018. "Impact of Digital Finance on Financial Inclusion and Stability," MPRA Paper 84771, University Library of Munich, Germany.
    22. Associate & Yanling Wang & Yan Yuan & Ping Gao, 2012. "Farmers' financial choices and informal credit markets in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 4(2), pages 216-232, May.
    23. Rui Chen & Fei Zhang & Ngai Weng Chan & Yishan Wang, 2023. "Multidimensional poverty measurement and spatial–temporal pattern analysis at county level in the arid area of Xinjiang, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(12), pages 13805-13824, December.
    24. Friederike Welter, 2011. "Contextualizing Entrepreneurship—Conceptual Challenges and Ways Forward," Entrepreneurship Theory and Practice, , vol. 35(1), pages 165-184, January.
    25. Park, Albert & Ren, Changqing, 2001. "Microfinance with Chinese Characteristics," World Development, Elsevier, vol. 29(1), pages 39-62, January.
    26. Biyun Ren & Liuying Li & Hongmei Zhao & Yunbo Zhou, 2018. "The Financial Exclusion In The Development Of Digital Finance — A Study Based On Survey Data In The Jingjinji Rural Area," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(01), pages 65-82, March.
    27. Yao Li & Haiming Long & Jiajun Ouyang, 2022. "Digital Financial Inclusion, Spatial Spillover, and Household Consumption: Evidence from China," Complexity, John Wiley & Sons, vol. 2022(1).
    28. Yan Yuan & Ping Gao, 2012. "Farmers' financial choices and informal credit markets in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 4(2), pages 216-232, May.
    29. Li, Xia & Gan, Christopher & Hu, Baiding, 2011. "Accessibility to microcredit by Chinese rural households," Journal of Asian Economics, Elsevier, vol. 22(3), pages 235-246, June.
    30. Long Chen, 2016. "From Fintech to Finlife: the case of Fintech Development in China," China Economic Journal, Taylor & Francis Journals, vol. 9(3), pages 225-239, September.
    31. Nishijima, Marislei & Ivanauskas, Terry Macedo & Sarti, Flavia Mori, 2017. "Evolution and determinants of digital divide in Brazil (2005–2013)," Telecommunications Policy, Elsevier, vol. 41(1), pages 12-24.
    32. Kidwell, Blair & Turrisi, Robert, 2004. "An examination of college student money management tendencies," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 601-616, October.
    33. Daniel Hoechle, 2007. "Robust standard errors for panel regressions with cross-sectional dependence," Stata Journal, StataCorp LLC, vol. 7(3), pages 281-312, September.
    34. Yuan, Yan & Xu, Lihe, 2015. "Are poor able to access the informal credit market? Evidence from rural households in China," China Economic Review, Elsevier, vol. 33(C), pages 232-246.
    35. Xiaohui Sun & Zhijian Cai & Chongyu Wang & Jing Wang, 2024. "The Impact of Digital Inclusive Finance on Residents’ Cultural Consumption in China: An Urban-Rural Difference Perspective," Sustainability, MDPI, vol. 16(24), pages 1-18, December.
    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. Fang Wang & Xixi Zhang & Chuwen Ye & Qihua Cai, 2024. "The Household Multidimensional Poverty Reduction Effects of Digital Financial Inclusion: A Financial Environment Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 172(1), pages 313-345, March.
    2. Rayenda Khresna Brahmana & Maria Kontesa & Josephine Tan-Hwang Yau, 2024. "Does information seeking moderate the relationship between financial loan inclusion and Fintech P2P lending?," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 171-185, March.
    3. Anushka Verma & Arun Kumar Giri & Byomakesh Debata, 2025. "ICT Diffusion, Financial Instability, and Shadow Economy: Panel Evidence from SAARC Economies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 12595-12616, September.
    4. Md Qamruzzaman, 2023. "Does financial innovation foster financial inclusion in Arab world? examining the nexus between financial innovation, FDI, remittances, trade openness, and gross capital formation," PLOS ONE, Public Library of Science, vol. 18(6), pages 1-28, June.
    5. repec:bcp:journl:v:9:y:2025:i:10:p:9777-9793 is not listed on IDEAS
    6. Yanfang Wang & Bin Zhang & Haifeng Hu, 2026. "How does FinTech development impact technological progress? A theoretical framework and empirical evidence," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 12(1), pages 1-46, December.
    7. Jiyuan Zhang & Shirong Zhao & Guangshun Qiao, 2026. "Fintech and bank efficiency: a robust nonparametric approach for Chinese commercial banks," Journal of Productivity Analysis, Springer, vol. 65(1), pages 1-21, March.
    8. Lanxin Sun & Zhenting Lin & Baowei Lai, 2025. "Examining the Impact of Digital Inclusive Finance on Urban and Rural Consumption Patterns: Insights from China Household Finance Survey in 11 Coastal Regions," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 12809-12842, September.
    9. Deng, Jiapin & Liu, Yanchu, 2022. "Does digital finance reduce the employment in the finance industry? Evidence from China," Finance Research Letters, Elsevier, vol. 48(C).
    10. Shreya Pal & Indranil Bandyopadhyay, 2022. "Impact of financial inclusion on economic growth, financial development, financial efficiency, financial stability, and profitability: an international evidence," SN Business & Economics, Springer, vol. 2(9), pages 1-29, September.
    11. Ma, Yechi & Ding, Yibing & Bu, Ziwen & Li, Suyang, 2024. "Political freedom and financial inclusion: Unraveling social trust and political rent-seeking," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 46-65.
    12. repec:ers:journl:v:xxiv:y:2021:i:special1:p:459-467 is not listed on IDEAS
    13. Mateusz Folwarski, 2021. "The FinTech Sector and Aspects on the Financial Inclusion of the Society in EU Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 459-467.
    14. Yi Yang & Shuhe Shi & Jingjing Wu, 2022. "Digital Financial Inclusion to Corporation Value: The Mediating Effect of Ambidextrous Innovation," Sustainability, MDPI, vol. 14(24), pages 1-23, December.
    15. Sujeeth Ungratwar & Dipasha Sharma & Satish Kumar, 2025. "Mapping the digital banking landscape: a multi-dimensional exploration of fintech, digital payments, and e-wallets, with insights into current scenarios and future research," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-22, December.
    16. Jamil, Abd Rahim Md. & Law, Siong Hook & Mohamad Khair-Afham, M.S. & Trinugroho, Irwan, 2023. "Financial inclusion and economic uncertainty in developing countries: The role of digitalisation," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 786-806.
    17. Mitch Kunce, 2022. "The Tenuous Ecological Divorce and Unemployment Link with Suicide: A U.S. Panel Analysis 1968-2020," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 11(3), pages 1-2.
    18. Rui Ding & Siwei Shen & Yuqi Zhu & Linyu Du & Shihui Chen & Juan Liang & Kexing Wang & Wenqian Xiao & Yuxuan Hong, 2023. "Evolution, Forecasting, and Driving Mechanisms of the Digital Financial Network: Evidence from China," Sustainability, MDPI, vol. 15(22), pages 1-18, November.
    19. Ghannouchi, Imen, 2023. "Examining the dynamic nexus between industry 4.0 technologies and sustainable economy: New insights from empirical evidence using GMM estimator across 20 OECD nations," Technology in Society, Elsevier, vol. 75(C).
    20. Davidoff, Thomas & Gerhard, Patrick & Post, Thomas, 2017. "Reverse mortgages: What homeowners (don’t) know and how it matters," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 151-171.
    21. Dierk Herzer & Holger Strulik & Sebastian Vollmer, 2012. "The long-run determinants of fertility: one century of demographic change 1900–1999," Journal of Economic Growth, Springer, vol. 17(4), pages 357-385, December.
    22. Steinert, Janina I. & Zenker, Juliane & Filipiak, Ute & Movsisyan, Ani & Cluver, Lucie D. & Shenderovich, Yulia, 2018. "Do saving promotion interventions increase household savings, consumption, and investments in Sub-Saharan Africa? A systematic review and meta-analysis," World Development, Elsevier, vol. 104(C), pages 238-256.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:eee:ecanpo:v:86:y:2025:i:c:p:1801-1819. 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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    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.