Spatial Spillover Effect and Threshold Effect of Digital Financial Inclusion on Farmers' Income Growth-Based on Provincial Data of China

The effect of digital financial inclusion on farmers' income growth is worth theoretical discussion and empirical testing. Based on the sample data of 30 provinces in the Chinese mainland from 2011 to 2019, this paper adopted the spatial Durbin model and the panel threshold model to empirically study the impact of digital financial inclusion on the growth of farmers' income; furthermore, the heterogeneity of the impact was studied in terms of the difference of provincial economic development level. The results showed that: first, digital financial inclusion can significantly promote farmers' income growth; second, digital financial inclusion has a positive spatial spillover effect on farmers' income growth; third, the impact of digital financial inclusion on farmers' income growth has a double threshold effect: farmers' income growth increases with the development of digital financial inclusion; and fourth, the impact of digital financial inclusion on farmers' income growth is heterogeneous in terms of provincial economic development level.

Automated summary

This paper empirically investigates the impact of digital financial inclusion on farmers' income growth and finds that it significantly promotes farmers' income growth. It also has a positive spatial spillover effect. The impact of digital financial inclusion on farmers' income growth is also heterogeneous in terms of provincial economic development level.