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Digital finance, non-agricultural employment, and the income-increasing effect on rural households

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  • Zhan, Yunqiu
  • Gao, Dongfei
  • Feng, Muzi
  • Yan, Shen

Abstract

This paper explores the impact of digital finance on rural farmers' household income, using data from the China Rural Revitalization Comprehensive Survey and the China Digital Financial Inclusion Index. By employing a multivariate Logit model to analyze 18,684 valid farmer household samples, this study reveals that digital finance and its three key dimensions—breadth of coverage, depth of usage, and level of digitization—all have significant positive effects on rural farmers' per capita income. Moreover, this study elucidates how non-agricultural employment acts as an intermediary factor, emphasizing that digital finance encourages rural farmers to engage in non-agricultural employment, elevating household net per capita income. Furthermore, endogeneity tests, robustness checks, and heterogeneity analyses confirm the positive impact of digital finance on rural farmers' income. Notably, the heterogeneity analysis indicates that digital finance primarily influences the non-agricultural business income of rural farmer households. By providing financing convenience and market information resources, digital finance aids farmers in expanding their business scale, enhancing operational efficiency, and ultimately leading to income growth.

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  • Zhan, Yunqiu & Gao, Dongfei & Feng, Muzi & Yan, Shen, 2025. "Digital finance, non-agricultural employment, and the income-increasing effect on rural households," International Review of Financial Analysis, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:finana:v:98:y:2025:i:c:s1057521924008299
    DOI: 10.1016/j.irfa.2024.103897
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    1. Jingyi Liang & Cuixia Qiao, 2025. "Digital Economy and High-Quality Agricultural Development: Mechanisms of Technological Innovation and Spatial Spillover Effects," Sustainability, MDPI, vol. 17(8), pages 1-28, April.

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