The impact of the inclusive financial development index on farmer entrepreneurship

Abstract

Based on the calculation of the inclusive financial development level of 22 provinces and 4 municipalities in China from 2004 to 2017, this paper uses the Kernel density estimation method to further analyze the evolution of the inclusive financial index. Based on the above analysis, we make empirical analysis of the impact of China's inclusive financial inclusion development index on farmers' entrepreneurship using static panel and dynamic panel estimation method. The empirical conclusions show that there are certain differences in inclusive financial inclusion development level in various provinces in China. Improving the inclusion development level of inclusive finance can better promote farmers' entrepreneurship. Urbanization level, economic openness and regional economic development level have a significant positive effect on farmers' entrepreneurship, while farmers' income and education level have a significant negative effect on farmers' entrepreneurship. It is possible to promote farmers' entrepreneurship by improving the inclusive development level of inclusive finance, combining urbanization, increasing government investment in productive fixed assets, increasing economic openness and improving regional economic development.

Financial inclusion in Africa: does it promote entrepreneurship?

“…This means that financial inclusion can improve the level of firm creation, which has been one of the area of policy concern to every government of every nation because of its impact on job creation, economic growth, empowerment and poverty reduction (Fareed et al, 2017;Sethi and Acharya, 2018;Inoue, 2019). It is against this background that researchers show interest in investigating the possible relationship between financial inclusion and entrepreneurship (Wang and Tan, 2017;Jiang et al, 2019;Goel and Madan, 2019). While there are few evidences that focus on this phenomenon, there is no such evidence on it within our selected country data set.…”

“…Theoretically, finance is one of the business fundamentals that can enhance entrepreneurial effectiveness and ensure alignment of goals with the economic development of a country (Schumpeter, 1934). In this case, financial inclusion is a concept that brings all groups into the financial net in such a way that they enjoy fair and sustainable financial services, especially low-income groups and vulnerable groups with financing difficulties (Jiang et al, 2019). Inclusive finance is a formal way of getting access to formal financial services including credit, remittance, insurance and saving opportunities, which has been regarded as a critical engine of entrepreneurial activities through value creation and innovative finance (Claessens and Perotti, 2007;Sethi and Acharya, 2018).…”

“…Based on the calculation of financial inclusion of 22 provinces and 4 municipalities in China from 2004 to 2017, Jiang et al (2019) use the Kernel density estimation method to further analyze the evolution of the financial inclusion index. The results show that there are certain differences in financial inclusion development level in various provinces in China.…”

“…Financial inclusion can provide suitable financial services to vulnerable groups including micro-enterprises, poor farmers and other low-income groups. It provides equal financial opportunities to all economic agents in an economy (Jiang et al, 2019).…”

The Measurement of Green Finance Development Index and Its Poverty Reduction Effect: Dynamic Panel Analysis Based on Improved Entropy Method

“…is paper tries to measure the GFI by the entropy weight method. e entropy method has been widely used in financial research [18][19][20][21][22][23][24][25] Compared with existing research, we find that there is very little literature analyzing the relationship between green finance development and poverty alleviation, but more research studies examine that financial development does matter on poverty alleviation. Most scholars align themselves with one or more of the following representative views.…”