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The impact of digital finance on farmers' consumption decisions: An analysis based on the moderating effect of risk preference

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  • Zhang, Shujun
  • Zhou, Qian

Abstract

This study uses data from the 2015, 2017 and 2019 China Household Finance Survey as a sample to analyze the intrinsic relationship between digital finance and rural household consumption in China based on the moderating effect of risk preference. The empirical results show that the development of digital finance can promote rural household consumption. Further research finds that financial literacy mediates between the two, while risk preference moderates. In addition, the impact of digital finance on rural household consumption in different regions is significantly different. There are also significant differences in the impact of digital finance on rural residents who use the Internet and those who do not. These findings provide an essential basis for understanding how digital finance affects the consumption behavior of rural residents and are of practical significance for formulating targeted rural financial policies and promoting rural consumption growth.

Suggested Citation

  • Zhang, Shujun & Zhou, Qian, 2025. "The impact of digital finance on farmers' consumption decisions: An analysis based on the moderating effect of risk preference," International Review of Financial Analysis, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:finana:v:99:y:2025:i:c:s1057521925000158
    DOI: 10.1016/j.irfa.2025.103928
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