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Does financial development matter the accomplishment of rural revitalization? Evidence from China

Author

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  • Fan, Shuaishuai
  • Jiang, Meihui
  • Sun, Daoyuan
  • Zhang, Shunkai

Abstract

Finance is an indispensable part of economic development. Financial development not only supports the implementation of China's Rural Revitalization strategy but also determines the development of economic growth. For this reason, it is important to explore the impact financial development has on rural revitalization. Using panel data taken from thirty provinces in China, during the period of 2011–2020, this paper analyzes the intermediary effect and the relationship between three factors: financial development, agricultural development, and rural revitalization. The paper's findings demonstrate, firstly, that rural revitalization is a long-term and sustainable process, and the development of rural revitalization in the current period will be affected by the previous development level of rural finance but, nevertheless, urbanization development and the tourism development have significantly inhibited the promotion of the rural revitalization. Secondly, financial development could promote rural revitalization, which differs significantly between different regions, and the allocation and the structure of financial resources need to be optimized further. Thirdly, financial development would directly promote rural revitalization and development, and the impacts financial development has on the five components of rural revitalization are different. Then lastly, financial development can indirectly promote rural revitalization and development by improving agricultural production levels. Agricultural modernization plays a crucial “bridge” here. This paper concludes with several policy suggestions for optimizing the allocation of financial resources, improving the financial system, and improving the level of agricultural development for furthering rural revitalization. This paper's study significantly furthers the understanding and the literature on the rural economy, rural revitalization, and sustainable development in China.

Suggested Citation

  • Fan, Shuaishuai & Jiang, Meihui & Sun, Daoyuan & Zhang, Shunkai, 2023. "Does financial development matter the accomplishment of rural revitalization? Evidence from China," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 620-633.
    • Handle: RePEc:eee:reveco:v:88:y:2023:i:c:p:620-633
    DOI: 10.1016/j.iref.2023.06.041
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    3. Cao, Jiawei & Tang, Haibin & Zhou, Yang, 2025. "Pathways of artificial intelligence applications, financial resilience, and rural revitalization," Finance Research Letters, Elsevier, vol. 85(PB).
    4. Xiaqun Liu & Yaming Zhuang & Xiaoyue Qiu, 2025. "Financial Support Efficiency of Rural Revitalization: Based on Three-Stage DEA Model and Malmquist Index Model," Sustainability, MDPI, vol. 17(3), pages 1-15, January.
    5. Tao Luo & Bo Shen & Zili Mei & Anders Hove & Keyi Ju, 2024. "Unlocking the potential of biogas systems for energy production and climate solutions in rural communities," Nature Communications, Nature, vol. 15(1), pages 1-10, December.
    6. Zhenhua Zhang & Chao Hua & Marshall S. Jiang & Jianjun Miao, 2024. "The spatial spillover effect of financial growth on high-quality development: Evidence from Yellow River Basin in China," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    7. Jiang, Youxue, 2024. "Public service equalization, digital financial inclusion and the rural revitalization: Evidence from Chinese 283 prefecture-level cities," International Review of Economics & Finance, Elsevier, vol. 96(PB).
    8. Chen, Tianqing & Zhang, Liangang & Wen, Mei & Yuan, Wei & Lin, Wenyue, 2025. "Can the development of agricultural insurance promote the resilience of agricultural economy? The dynamic mechanisms of the digital economy development," International Review of Economics & Finance, Elsevier, vol. 103(C).
    9. Zhao, Qiao & Wang, Wangqing, 2025. "Digital transformation and rural financial development," Finance Research Letters, Elsevier, vol. 84(C).
    10. Chandio, Abbas Ali & Ozdemir, Dicle & Vigne, Samuel A. & Du, Anna Min, 2024. "Towards sustainable agricultural development and food security in East Asia: The role of broad money and banking credits," International Review of Economics & Finance, Elsevier, vol. 96(PB).
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