Does Digital Inclusive Finance Development Affect the Agricultural Multifunctionality Extension? Evidence from China

Abstract

This paper constructs a comprehensive index system for agricultural multifunctionality extension to measure the agricultural multifunctionality development level in 30 sample provinces in China from 2011 to 2019, builds a model to explain theoretically and test empirically the impact of digital inclusive finance on agricultural multifunctionality extension using Peking University Digital Inclusive Finance Index, and discusses the moderating role of rural human capital in the above process. The main findings include: (1) The rapid increase in the development level of agricultural multifunctionality presents typical regional differences in several regions of China, showing the gradient characteristics of the eastern part higher than the central part and the central part higher than the western part. (2) Digital inclusive finance can significantly promote the agricultural multifunctionality extension, and significantly contribute to the growth of agricultural product supply, economic development and social security functions, while having a particular inhibitory effect on ecological environment function. (3) The width of coverage and depth of use of digital inclusive finance can affect agricultural multifunctionality extension. The digitalization degree inhibits agricultural multifunctionality extension. (4) Rural migratory human, educational human and healthy human capitals are significant positive moderators of the impact of digital inclusive finance on agricultural multifunctionality extension.

Keywords

• digital inclusive finance
• agricultural multifunctionality extension
• rural human capital
• moderating effect