IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i19p8927-d1766828.html

Research on the Mechanism of Digital Skills for Enhancing Farmers’ Participation in Formal Financial Markets

Author

Listed:
  • Jiayan Zhang

    (Overseas Chinese College, Capital University of Economics and Business, Beijing 100070, China)

  • Chenxi Zhang

    (School of Finance, Capital University of Economics and Business, Beijing 100070, China)

  • Huilian Yang

    (School of Economics, Capital University of Economics and Business, Beijing 100070, China)

Abstract

Exploring the factors and mechanisms influencing farmers’ participation behavior in formal financial markets is of great significance for improving the rural financial service system and comprehensively promoting the development of rural inclusive finance. Based on the data from the 2020 China Rural Revitalization Survey (CRRS), this paper explores the impact and mechanism of digital skills on farmers’ participation in formal financial markets through the theories of feasibility information, social capital, and technology acceptance. The research results show that digital skills significantly promote farmers’ likelihood and extent of participation in formal financial markets, including stocks, bonds, and wealth management products. This is because digital skills enhance farmers’ information acquisition and online transaction capabilities and broaden their social networks. Heterogeneity analysis reveals that digital skills exert a greater influence on both the likelihood and extent of participation of farmers with lower educational level, farmers in the middle-aged and elderly cohorts, and farmers with low income in formal financial markets. Further research reveals that participating in formal financial markets can significantly increase farmers’ annual income. Therefore, training should be strengthened to enhance farmers’ digital skills. Open information platforms should be established to broaden channels, gradually enabling farmers to freely acquire information, reducing the cost of maintaining social networks for farmers, and improving the convenience of farmers’ online transactions. In addition, efforts should be made to promote the development of inclusive finance, focus on the differentiation issues of farmers in information and wealth, and thereby more widely enhance farmers’ participation in formal financial markets.

Suggested Citation

  • Jiayan Zhang & Chenxi Zhang & Huilian Yang, 2025. "Research on the Mechanism of Digital Skills for Enhancing Farmers’ Participation in Formal Financial Markets," Sustainability, MDPI, vol. 17(19), pages 1-22, October.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:19:p:8927-:d:1766828
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/19/8927/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/19/8927/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fu, Changluan & Sun, Xinyue & Guo, Mengting & Yu, Chenyang, 2024. "Can digital inclusive finance facilitate productive investment in rural households?–An empirical study based on the China Household Finance Survey," Finance Research Letters, Elsevier, vol. 61(C).
    2. Gutsche, Gunnar & Wetzel, Heike & Ziegler, Andreas, 2023. "Determinants of individual sustainable investment behavior - A framed field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 491-508.
    3. Wozniak, Gregory D, 1993. "Joint Information Acquisition and New Technology Adoption: Late versus Early Adoption," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 438-445, August.
    4. Qing Wang & Chengjun Liu & Sai Lan, 2023. "Digital literacy and financial market participation of middle-aged and elderly adults in China," Economic and Political Studies, Taylor & Francis Journals, vol. 11(4), pages 441-468, October.
    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. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    2. Wang, Pengcheng & Yang, Xuelin, 2024. "Social trust and household financial decision-making: An empirical study based on the usage of household financial technology," Finance Research Letters, Elsevier, vol. 70(C).
    3. Shen, Lin & Zhang, Wen & Ma, Dan, 2025. "ESG practices and financing constraints of Chinese high-carbon enterprises under carbon reduction pressure: The role of credit financing and corporate reputation," Economic Modelling, Elsevier, vol. 152(C).
    4. Shoumin Yue & Ying Xue & Jie Lyu & Kangkang Wang, 2023. "The Effect of Information Acquisition Ability on Farmers’ Agricultural Productive Service Behavior: An Empirical Analysis of Corn Farmers in Northeast China," Agriculture, MDPI, vol. 13(3), pages 1-26, February.
    5. Gleue, Marvin & Luigs, Theresa & Ziegler, Andreas, 2025. "The relevance of non-state climate protection activities as motivation for individual climate protection: Results from a framed field experiment," Resource and Energy Economics, Elsevier, vol. 81(C).
    6. Zeng, Yuan & Yang, Yusen & Wang, Chun & Zou, Jianke, 2025. "Exploring the digital divide–poverty link: Roles of education and family dependency," Finance Research Letters, Elsevier, vol. 85(PC).
    7. Dai, Wensheng, 2025. "Belt and Road Initiative: Driving innovation in tech enterprises through global value chains," Finance Research Letters, Elsevier, vol. 74(C).
    8. Aidi Xu & Jie Zhang, 2024. "Utilizing virtual arts in reforming market players’ behavior to invest in sustainability projects," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.
    9. Aristei, David & Gallo, Manuela & Vannoni, Valeria, 2024. "Preferences for ethical intermediaries and sustainable investment decisions in micro-firms: The role of financial literacy and digital financial capability," Research in International Business and Finance, Elsevier, vol. 71(C).
    10. Chen, Chuna & Tan, Zhuomin & Liu, Song, 2024. "How does financial literacy affect households’ financial fragility? The role of insurance awareness," International Review of Economics & Finance, Elsevier, vol. 95(C).
    11. Waters, James, 2013. "The influence of information sources on inter- and intra-firm diffusion: evidence from UK farming," MPRA Paper 50955, University Library of Munich, Germany.
    12. Meyer, Julia, 2024. "Do sustainably managed pension savings foster sustainable investments? Evidence from a field experiment," Journal of Behavioral and Experimental Finance, Elsevier, vol. 44(C).
    13. Chaofeng Li & Yasir Ahmed Solangi & Sharafat Ali, 2023. "Evaluating the Factors of Green Finance to Achieve Carbon Peak and Carbon Neutrality Targets in China: A Delphi and Fuzzy AHP Approach," Sustainability, MDPI, vol. 15(3), pages 1-21, February.
    14. Lidia Dandedjrohoun & Aliou Diagne & Gauthier Biaou & Simon N’cho & Soul-Kifouly Midingoyi, 2012. "Determinants of diffusion and adoption of improved technology for rice parboiling in Benin," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 93(2), pages 171-191.
    15. Ali Hassan & Jean-Baptiste Hasse & Christelle Lecourt, 2025. "Is Impact Investor Behavior Different ?," AMSE Working Papers 2521, Aix-Marseille School of Economics, France.
    16. Yihan Chen & Wen Xiang & Minjuan Zhao, 2024. "Impacts of Capital Endowment on Farmers’ Choices in Fertilizer-Reduction and Efficiency-Increasing Technologies (Preferences, Influences, and Mechanisms): A Case Study of Apple Farmers in the Provinces of Shaanxi and Gansu, China," Agriculture, MDPI, vol. 14(1), pages 1-25, January.
    17. Elliott, Lisa & Parcell, Joe & Patterson, David & Smith, Michael F. & Poock, Scott, . "Factors Influencing Beef Reproductive Technology Adoption," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2013, pages 1-20.
    18. Abdulai, Awudu & Huffman, Wallace, 1998. "An Examination of Profit Inefficiency of Rice Farmers in Northern Ghana," Staff General Research Papers Archive 1380, Iowa State University, Department of Economics.
    19. Li Yu & Peter F. Orazem, 2014. "O-Ring production on U.S. hog farms: joint choices of farm size, technology, and compensation," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 431-442, July.
    20. Marszk, Adam & Lechman, Ewa, 2024. "What drives sustainable investing? Adoption determinants of sustainable investing exchange-traded funds in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 63-82.

    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:gam:jsusta:v:17:y:2025:i:19:p:8927-:d:1766828. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.