An Empirical Test of the Impact of Sci-Tech Finance Development on Rural Industrial Convergence

This study examines the impact of Sci-tech Finance on rural industrial integration in China. Findings indicate that Sci-tech Finance has a significant positive effect on rural industrial integration. Additionally, impulse response analysis reveals that Sci-tech Finance has a more significant long-term positive impact on rural industrial integration. Further variance decomposition demonstrates that, although the variance contribution rate of Sci-tech Finance to rural industrial integration increases during the prediction period, it remains relatively low. This result suggests that while Sci-tech Finance supports rural industrial integration, there is still ample opportunity to improve this influence. The key to improvement lies in enhancing the supply of science and technology finance from the supply side, improving acceptance of rural industrial integration on the demand side, strengthening platform and carrier construction and improving policy guarantee mechanisms. JEL Classification: Q16R&D, Agricultural Technology, Biofuels, Agricultural Extension Services.