Financial Development and Farmers'Leverage Ratio Fluctuations
Rural digital finance is changing farmers'financial behaviors,which may therefore influence the stability of financial market.Using data from the Digital Financial Inclusion Index(2011-2015)and the Household Finance Survey(2015-2019),the long-term impact of digital financial development on the leverage ratio of farm households is explored at the provincial level.The study finds that digital finance can significantly reduce the long-term leverage of farm households by increasing household income and promoting reasonable consumption.The effect of digital finance in boosting industrial and commercial income,agricultural production and operational income and non-farm employment income diminishes,and the role of the three types of income in reducing the leverage ratio of farm households increases.Sur-vival and developmental consumption can enhance the endogenous development capacity of households,while improving their economic situation and reducing their debt burden.When the supply of digital financial resources is greater than the need;the long-term leverage of poor farm households increases rather than decreases.Lagging public services for employment and entrepreneurship in rural areas and the ineffective use of digital finance will push up the leverage ratio of poor farmers.
digital inclusive financepeasant householdfinancial supplyemployment and entrepre-neurship services
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