Work

The Protective Effect of Digital Financial Inclusion on Agricultural Supply Chain during the COVID-19 Pandemic: Evidence from China

Year: 2021

Type: article

Abstract: Financial inclusion plays a positive role in protecting agriculture during or after disaster. This paper focuses on the protective effect of digital financial inclusion on the agricultural supply chain and analyzes three mechanisms of the protective effect: financial widening, financial deepening, and financial services digitization. Based on the Gravity Equation, we conduct an empirical study using agricultural logistics and digital financial inclusion data from China. The regression results indicate that a 1% increase in the digital financial inclusion, measured by the Peking University Digital Inclusion Index, increases agricultural trade during the COVID-19 pandemic by approximately 1.6%. Furthermore, heterogeneous protective effects exist between regions in China. Digital financial inclusion is more effective in the Eastern regions in protecting the ASC than in other regions. This paper enriches the understanding of financial inclusion in helping agriculture supply chain recovery.

Source: Journal of theoretical and applied electronic commerce research

DOI: 10.3390/jtaer16070174

Authors: Da Fang, Xiaoke Zhang

Institution: Peking University

Language: English

Topic: Digitalization and Economic Development in Agriculture

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Zero hunger, Decent work and economic growth, Industry, innovation and infrastructure, No poverty

Open Access status: gold

Estimated APC paid: $1,080