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Assessing the impact of digital financial inclusion on agricultural total factor productivity in China

In: International Food and Agribusiness Management Review
Authors:
Shixian Zhai Associate Professor, Administration and Management Institute, Ministry of Agriculture and Rural Affairs, 209 Huangping Road, Changping District, Beijing, 102208, China P.R.
Associate Research Fellow, Rural Development Institute, Yan’an University, Public School North Road, Baota District, Yan’an, Shaanxi, 716000, China P.R.

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Chao Peng Professor, Administration and Management Institute, Ministry of Agriculture and Rural Affairs, 209 Huangping Road, Changping District, Beijing, 102208, China P.R.
Research Fellow, Rural Development Institute, Yan’an University, Public School North Road, Baota District, Yan’an, Shaanxi, 716000, China P.R.

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Yu Sheng Professor, School of Advanced Agriculture Sciences, Peking University, 5 Summer Palace Road, Haidian District, Beijing, 100080, China P.R.

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Open Access

Based on panel data from the National rural fixed point survey from 2011 to 2018 and the Peking University digital financial inclusion (DFI) index data, this article uses the dynamic panel fixed effect model to analyze the effect of access to digital inclusive financing platforms on agricultural total factor productivity (TFP) and its contributing factors at the household level. The results show that DFI have a significant hysteresis positive impact on agricultural TFP and its two components, agricultural technical progress and agricultural technical efficiency change. And the usage depth of financial services has the greatest effect in three dimensions of DFI index.

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