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Agricultural transformation in the digital age: Digital inclusive finance and the development of new agricultural business entities

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  • Su, Fangfang
  • Tao, Sumin
  • Ying, Ruiyao

Abstract

Capital and land are two critical production factors for the development of new agricultural business entities. However, existing research has paid relatively little attention to the impact of capital on the development of these entities. This paper integrates survey data from the Chinese Thousand Villages Survey (CTVS) with the Digital Financial Inclusion Index to examine the effects of digital financial inclusion on the development of new agricultural business entities. The study finds that the improvement in digital financial inclusion significantly promotes the development of new agricultural business entities, and digital inclusive finance has a significantly positive effect on family farms, while it does not exert a significant influence on the development of specialized large households or farmers' cooperatives. The mechanism analysis reveals that digital financial inclusion alleviates farmers' credit constraints and increases the availability of both formal and informal financial services, thus fostering the development of new agricultural business entities.

Suggested Citation

  • Su, Fangfang & Tao, Sumin & Ying, Ruiyao, 2025. "Agricultural transformation in the digital age: Digital inclusive finance and the development of new agricultural business entities," Finance Research Letters, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:finlet:v:72:y:2025:i:c:s154461232401643x
    DOI: 10.1016/j.frl.2024.106614
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    References listed on IDEAS

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