Digital finance and agricultural entrepreneurship

Using Chinese prefecture-level panel data (2011–2022), we demonstrate that digital finance significantly stimulates agricultural entrepreneurship. This effect is driven by usage depth and digitization level, not mere coverage breadth. While payments and insurance act as catalysts, direct credit exhibits a crowding-out effect. The entrepreneurial boost is concentrated in eastern and e-commerce-rich regions, highlighting a persistent digital divide. Dynamically, digital finance induces Schumpeterian ‘creative destruction’ by accelerating both firm entry and exit. This study contributes to the literature in two main ways. First, it identifies the substantive boundaries of financial inclusion. We show that genuine inclusion relies on functional usage instead of nominal coverage. Second, the research empirically captures a process of ‘creative destruction’ within the agricultural sector. Digital finance directly drives this market dynamic. Our findings underscore the critical distinction between nominal financial access and substantive inclusion.

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Publication Details

Journal
Applied Economics Letters
Published
2026-10-29
DOI
https://doi.org/10.1080/13504851.2026.2754280
Primary Topic
FinTech, Crowdfunding, Digital Finance
Type
article
Field-Weighted Citation Impact
0.00
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article

Digital finance and agricultural entrepreneurship

Qianxiao Zhang, Runze Liu, Yuan Hao
3 links
Applied Economics Letters
FinTech, Crowdfunding, Digital Finance
article

Digital finance and agricultural entrepreneurship

Qianxiao Zhang, Runze Liu, Yuan Hao
article en

Abstract

Using Chinese prefecture-level panel data (2011–2022), we demonstrate that digital finance significantly stimulates agricultural entrepreneurship. This effect is driven by usage depth and digitization level, not mere coverage breadth. While payments and insurance act as catalysts, direct credit exhibits a crowding-out effect. The entrepreneurial boost is concentrated in eastern and e-commerce-rich regions, highlighting a persistent digital divide. Dynamically, digital finance induces Schumpeterian ‘creative destruction’ by accelerating both firm entry and exit. This study contributes to the literature in two main ways. First, it identifies the substantive boundaries of financial inclusion. We show that genuine inclusion relies on functional usage instead of nominal coverage. Second, the research empirically captures a process of ‘creative destruction’ within the agricultural sector. Digital finance directly drives this market dynamic. Our findings underscore the critical distinction between nominal financial access and substantive inclusion.

Applied Economics Letters
Xi'an Jiaotong University (CN)
Decent work and economic growth, Zero hunger
Openalex Percentile: Top 6%
FinTech, Crowdfunding, Digital Finance
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