Digital inclusive finance, local entrepreneurial dynamism, and farmers’ income: Evidence from China

Although fintech has been widely recognized as a driver of rural income improvement, the mediating role of local entrepreneurial dynamism as a core transmission channel has not been fully explored.

Using data from the 2014–2016 China Labor-force Dynamics Survey (CLDS), the study investigated the impact of digital inclusive finance on farmers’ income in China.

The results indicate that digital inclusive finance contributes to farmers’ income growth, and this relationship is amplified by improved local entrepreneurial dynamism. Heterogeneity analysis further reveals that the inclusiveness of digital inclusive finance remains limited, as its income-enhancing effects are mainly observed among farmers with higher digital literacy and non-poor households.

These findings shed light on the micro-level mechanisms through which fintech promotes rural income growth and offer important policy implications for improving the inclusiveness of digital financial development.