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The selection of a suitable reform model for provincial rural credit cooperatives unions (PRCCUs) is a pivotal aspect of China's ongoing financial reform endeavors. This involves optimizing internal processes, enhancing efficiency, minimizing operational costs, elevating service quality, strengthening financial innovation capabilities, and promoting the healthy growth of rural financial markets. However, current research on this matter primarily concentrates on qualitative analysis. As of yet, a scientifically grounded decision-making framework from a quantitative standpoint has not been developed. This absence of quantitative analysis results in inaccuracies in research findings, thereby hindering the practical applicability of outcomes. To tackle this formidable challenge, we propose an innovative quantitative analysis framework employing the multi-criteria group decision-making method. This framework, which builds upon the cumulative prospect theory (CPT), the TODIM method, and the most recent advances in type-2 fuzzy numbers (T2FNs), is referred to as the T2FNs-CPT-TODIM. Initially, we define a novel score function, followed by the introduction of a fresh method for computing the distance between the T2FNs. Subsequently, our model pioneers an exclusive weight allocation strategy for decision-makers, grounded in the principles of Dice Similarity. Furthermore, the objective weights of criteria can be computed utilizing the Distance Correlation-based CRITIC approach. We then optimize the rankings by applying the advantage of gains and losses preference in the CPT-TODIM. Ultimately, we apply our proposed model to the practical task of selecting the optimal reform model for a specific PRCCU. Thorough comprehensive sensitivity and comparative analyses, the results validate the theoretical robustness and practical efficacy of our proposed method. • We developed a novel quantitative decision making analysis framework for the PRCCUs. • The new score function, distance measure, and Dice Similarity measure are introduced. • Apply the proposed framework to the selection of a PRCCU's reform models. [ABSTRACT FROM AUTHOR]

Insufficient capital investment coupled with limited land resources significantly limits cultivated land use efficiency (CLUE). China's rural credit policy system is currently growing, yet the impact of farmer-level credit on CLUE remains understudied. Therefore, this study investigated whether rural credit enhances CLUE by using the China Rural Revitalization Survey (CRRS) data. It explored the impact and mechanism of rural credit on CLUE using least squares regression and mediation models. According to our results, the average CLUE level for farmers in the study area was 0.661, which still had much room for improvement compared with Japan, which also has a large population but limited land. In addition, access to rural credit positively affected CLUE, with cultivated land scale-up and technological applications mediating the rural-credit-driven increase in CLUE. Further analyses of the rural credit allocation mode (RCAM) indicated that farmers' use of credit for investment in agricultural production factors boosted CLUE more than non-farming allocation of credit funds. These findings suggest that the government should continue to increase support for rural credit while improving the monitoring mechanism for credit allocation to prevent rural credit de-farming from hindering CLUE improvement. [ABSTRACT FROM AUTHOR]

Although the rural credit cooperatives are the only formal credit providers to millions of households in rural China, empirical evidence suggests that they do not serve the interests of member households very effectively. This study examines how far the recent institutional reforms have addressed the problems of insider control and collective action in corporate governance and reduced local political influence on their operations. It contributes to the currently scant literature on the reasons for the persistence in China of local political interference in loan allocations. This study's findings suggest the need for a re-evaluation of the conventional wisdom that the role of local states in China's development is a positive one. [ABSTRACT FROM AUTHOR]

Examines the role rural credit played in peasant petty commodity production in rural China. Peasant petty commodity production as a combination of subsistence farming, cash crop production and handicraft production; Use of rural credit in sericulture and sericulture-related handicraft production; Consumption credits as an integral part of the production process.

This paper studies the cross-regional variation of interest rates in China in the 1930s. Based on county-level data from the Buck (1941) rural surveys, we examine factors that may have influenced rural interest rates in pre-1949 China. Since the quality of institutions that define property rights and facilitate contract enforcement is important for such transactions as land tenancy arrangements, we treat land tenancy rate (or percentage of owner-farmers) as a proxy for institutional quality. Contrary to the popular belief among historians and economists that usury or high interest rates caused persistent poverty, we find that while the monopoly-exploitation hypothesis has little explanatory power, a region's institutional quality and income level are persistent and significant determinants of interest rates. Thus, poverty is a key driver of high rates of interest. Economic growth and the development of market institutions are crucial for lowering high interest rates and combating usury. [ABSTRACT FROM AUTHOR]

In China's rural credit system, the problem of credit constraints is prominent. Due to the imperfect credit market, a large number of rural residents have credit constraints. Rural credit constraint is a serious problem restricting China's rural economic development. Aimed at solving the rural credit constraints, this paper makes an optimization analysis on the rural credit system and loan decision-making. To more reasonably evaluate customers' borrowing ability, the credit risk based on farmers' data on the big data platform is evaluated in this paper. The stacked denoising autoencoder network is improved by adopting the deep learning framework to improve the accuracy of credit evaluation. For improving the loan decision-making ability of rural credit system, a loan optimization strategy based on multiobjective particle swarm optimization algorithm is proposed. The simulation results show that the optimization ability, speed, and stability of the proposed algorithm have achieved good results in dealing with the loan portfolio decision-making problem. [ABSTRACT FROM AUTHOR]

Ample empirical evidence suggests that Rural Credit Cooperatives (RCCs), which are the core credit institutions in rural China, are not accountable to their member households. This article argues that this conundrum can be explained by an institutional analysis of the credit cooperatives using the multiple principals--agent framework: the credit cooperatives as agents are accountable to multiple heterogeneous principals-with multiple conflicting objectives. The multiple principals are (1) the County RCC Unions, which exercise control using the evaluation criteria on which the remuneration of grassroots RCC officers is assessed; (2) local party secretaries, who exert influence through top personnel appointment and dismissal in the credit cooperatives; and (3) member households, which are a "collective" principal. In a multiple-principals scenario, the "collective" principal has weaker control over the agents due to the "collective action" problem. [ABSTRACT FROM AUTHOR]

This letter examines the state of financial inclusion in rural China. It shows that despite China's efforts at being financially inclusive there is substantial variability across and within provinces. With strong reliance on electronic technologies, China's rural and farm communities use internet technologies only half as much as all users, and less than 2% access credit through the internet. From a policy perspective, China should address problems of financial education and rural credit access. [ABSTRACT FROM AUTHOR]

Five-category loan classification (FCLC) is an international financial regulation approach. Recently, the application and implementation of FCLC in the Chinese microfinance bank has mostly relied on subjective judgment, and it is difficult to control and lower loan risk. In view of this, this paper is dedicated to researching and solving this problem by constructing the FCLC model based on improved particle-swarm optimization (PSO) and the multiclass, least-square, support-vector machine (LS-SVM). First, LS-SVM is the extension of SVM, which is proposed to achieve multiclass classification. Then, improved PSO is employed to determine the parameters of multiclass LS-SVM for improving classification accuracy. Finally, some experiments are carried out based on rural credit cooperative data to demonstrate the performance of our proposed model. The results show that the proposed model makes a distinct improvement in the accuracy rate compared with one-vs.-one (1-v-1) LS-SVM, one-vs.-rest (1-v-r) LS-SVM, 1-v-1 SVM, and 1-v-r SVM. In addition, it is an effective tool in solving the problem of loan-risk rating. [ABSTRACT FROM AUTHOR]

The article investigates the consequences of credit constraints on rural household consumption in China. Based on a unique rural finance and consumption survey, the authors first identify the credit constraint status of rural households from formal financial institutions. Then, they apply an endogenous switching regression model to compare the consumption responses to household production inputs for credit constrained and non-constrained households. The estimation results reveal that the credit constraint could result in the crowding out effect of the aggregate household consumption from its production inputs. Nonetheless, similar to the non-constrained households, the credit constraint households are capable of smoothing their necessary consumption. [ABSTRACT FROM AUTHOR]

In order to solve the predicament of rural economic development, China's rural areas have spontaneously formed a rural financial system with rural characteristics. With the deepening reform of rural finance, Rural Commercial Bank was restructured on the basis of rural credit cooperatives in the past. It can be said that Rural Commercial Bank is a rural financial institution born in rural areas. Therefore, the development of the local rural commercial bank and the development of the local rural economy have been integrated, and the core force in rural finance is the Rural Commercial Bank. It is precisely because of the core position of China's rural commercial banks in rural, when Chinese scholars conduct research on rural finance, they often choose rural commercial banks as the research object. Based on this, when the article studies the impact of rural finance on the rural economy, it also chooses rural commercial banks as the research object. Finance that the rural commercial banks are used as the starting point to carry out the research work on their local rural finance. This article takes D County Rural Commercial Bank as an example to introduce and analyze the development status and development process of D county's rural finance. Using the method of empirical research, this paper studies the impact of the development of agricultural-related business of rural commercial banks on the rural economy. In addition, according to the empirical research results, a set of financial innovation countermeasures to promote rural economic development is proposed. Through the research on the influence of rural financial institutions in D county on the rural economy, it can be seen that providing new directions and new methods for the development of China's rural economy from the perspective of finance. It provides a reference for promoting the stable and effective development of the domestic rural economy. The survey shows that rural deposits have maintained a rapid upward trend. The total amount increased rapidly from 2.219 billion yuan in 2012 to 6.039 billion yuan in 2018, with an average annual increase of 637 million yuan. [ABSTRACT FROM AUTHOR]

"Finance in Rural China" is a book that provides an in-depth review of the marketization reform of China's rural financial system. It focuses on three important reforms implemented at different stages of rural development in China, including the rural credit cooperative reform, the development of inclusive finance, and the integration of digital economy and digital finance. The book discusses the evolution of China's rural financial system, the ownership and governance of financial institutions, and the development of digital inclusive finance. It offers valuable insights into financial reforms in other developing countries and provides background information on China's rural financial system. However, it lacks extensive empirical analysis but offers a wealth of stylized facts. [Extracted from the article]

There are two prevailing perspectives on how China took off. One emphasizes the role of globalization-foreign trade and investments and special economic zones; the other emphasizes the role of internal reforms, especially rural reforms. Detailed documentary and quantitative evidence provides strong support for the second hypothesis. To understand how China's economy took off requires an accurate and detailed understanding of its rural development, especially rural industry spearheaded by the rise of township and village enterprises. Many China scholars believe that township and village enterprises have a distinct ownership structure-that they are owned and operated by local governments rather than by private entrepreneurs. I will show that township and village enterprises from the inception have been private and that China undertook significant and meaningful financial liberalization at the very start of reforms. Rural private entrepreneurship and financial reforms correlate strongly with some of China's best-known achievements-poverty reduction, fast GDP growth driven by personal consumption (rather than by corporate investments and government spending), and an initial decline of income inequality. The conventional view of China scholars is right about one point-that today's Chinese financial sector is completely state-controlled. This is because China reversed almost all of its financial liberalization sometime around the early to mid 1990s. This financial reversal, despite its monumental effect on the welfare of hundreds of millions of rural Chinese, is almost completely unknown in the West. [ABSTRACT FROM AUTHOR]

This article innovatively builds the infrastructure of farmer credit rating index system into a multilevel unidirectional network structure. First, according to the logical structure of the three-level credit rating index system, a four-level unidirectional network is constructed, and the credit rating calculation formulas of all indexes at the four-level network are established. Furthermore, the special cases of the credit rating formula with the first- and second-level farmer credit rating index system are discussed. On this basis, it is extended to a credit rating index system with more than four levels, and the corresponding credit rating formula is established. Finally, the general formula of credit rating formula of the farmer credit rating index system from first level to multilevel is obtained. In order to solve the problem of farmers' credit rating, this paper also designs a linear segmentation classifier to classify the results of multilayer unidirectional network, establishes the rules of farmers' credit rating and the unidirectional network linear segmentation evaluation model of farmers' credit rating, and discusses the properties of bank credit based on farmers' credit rating. Finally, the model established in this paper is applied to the credit rating of farmers in A County, Guangdong Province in China. When the credit rating of 160 farmers is carried out, the evaluation results are in line with the actual credit rating of farmers in A County, with an accuracy of 100%. This research has the maneuverability to carry on the scientific credit rating to the countryside. This study has important method guidance and operability for rural credit rating. [ABSTRACT FROM AUTHOR]

In the field of risk assessment, the traditional econometric models are generally used to assess credit risk. And with the introduction of the "dual-carbon" goals to promote the development of a low-carbon economy, the scale of green credit in China has rapidly expanded. But with the advent of the big data era, due to the poor interpretability of a traditional single machine learning model, it is difficult to capture nonlinear relationships, and there are shortcomings in prediction accuracy and robustness. This paper selects the adjusted ensemble learning model based on the homogeneous and heterogeneous factors for user default prediction, which can efficiently process large quantities of high-dimensional data. This article adjusts each model to adapt to the task and innovatively compares various models. In this paper, the missing value filling method, feature selection, and ensemble model are studied and discussed, and the optimal ensemble model is obtained. When comparing the predictions of single models and ensemble models, the accuracy, sensitivity, specificity, F1-Score, Kappa, and MCC of Categorical Features Gradient Boosting (CatBoost) and Random undersampling Boosting (RUSBoost) all reach 100%. The experimental results prove that the algorithm based on adjusted homogeneous and heterogeneous ensemble learning can predict the user default efficiently and accurately. This paper also provides some references for establishing a risk assessment index system. [ABSTRACT FROM AUTHOR]

Digital finance plays a crucial role in enhancing financial inclusion and decreasing income inequality within developing countries. Given the digital and financial attributes that characterize digital finance, digital financial literacy (DFL) is a critical factor that influences the extent to which this function can be exploited. There is relatively little empirical evidence linking DFL to rural income inequality. Based on the 2017 and 2019 China Household Finance Survey data and two-way fixed effect panel model, this study focuses on rural China and examines the effect of DFL on income inequality. Meanwhile, this study also explores the mechanism of this effect from the perspectives of financial asset allocation and entrepreneurship. The empirical results show that (1) increasing DFL within rural households contributes to decreasing income inequality; (2) DFL can decrease income inequality by enriching the variety of household financial assets and enlarging the proportion of risky financial assets in rural households; and (3) improving DFL can ameliorate rural income inequality by increasing the probability of entrepreneurship. The study's findings put forward fresh empirical evidence for understanding the relationship and mechanism that exist between DFL and income inequality, and more significantly, provide new suggestions for designing and enhancing financial policies that aim to decrease income inequality in developing countries. [ABSTRACT FROM AUTHOR]

Rural financial development is deemed essential for eliminating poverty. In China, successive governments have initiated a series of financial development plans to reduce poverty since the launch of economic reform in the late 1970s. However, there is a rising concern about whether financial development can reduce poverty in China. This study uses a panel dataset of 30 provinces (out of 31) in mainland China from 1997 to 2015 to examine the effect of rural financial development on poverty reduction. We employ a spatial panel model to investigate whether rural financial development has a positive spatial spillover effect. Moreover, we use the instrumental variable method to address the possible bidirectional causal effect between rural financial development and poverty reduction. Our study confirms that rural financial development does reduce poverty and simultaneously widen the urban-rural income gap. We further find that rural financial development has a positive spatial spillover effect on poverty alleviation and that the conventional panel model (e.g., fixed effects method) may underestimate the effect of rural financial development, as it ignores the spatial spillover effect. [ABSTRACT FROM AUTHOR]

Background: The adoption of new agricultural technologies is one of the key factors for achieving sustainable agricultural development. With the rapid development of China's economy and the widening gap between urban and rural areas, it has become the norm for farmers to seek employment outside their home villages. This phenomenon not only changes the lifestyle of farmers but may also affect their attitudes toward and adoption behavior of new agricultural technologies. However, existing research in this field is not yet sufficient. This paper aims to assess the overall impact, heterogeneous effects, and mechanisms of action of migrant work experience on farmers' willingness to adopt new agricultural technologies. Methods: Based on the 8,391 sample data from 243 counties in the 2018 China Labor Force Dynamic Survey (CLDS2018), this paper uses the Linear Probability Model (LPM), Two Stage Least Square (2SLS), Conditional Mixed Process (CMP) methods, and omitted variable test to estimate the impact of migrant work experience on farmers' willingness to adopt new agricultural technologies. Simultaneously, it explored the heterogeneity in the relationship between migrant work experience and the willingness to adopt new agricultural technologies from the perspectives of gender, age, and educational level. Lastly, the Karlson-Holm-Breen (KHB) model was utilized to analyze the mechanisms through which migrant work experience affects farmers' willingness to adopt new agricultural technologies. Results: Migrant work experience significantly enhances farmers' willingness to adopt new agricultural technologies, with the probability of willingness among farmers with migrant work experience being 26.65% higher than that of farmers without such experience. At the same time, compared to female farmers, those born before 1980, and those with primary education or less, this enhancing effect is more pronounced among male farmers, those born after 1980, and those with more than a primary education. Furthermore, it was found that migrant work experience not only directly enhances farmers' willingness to adopt new agricultural technologies but also indirectly promotes it by increasing capital accumulation, enhancing risk awareness, expanding social networks, and strengthening agricultural cognition, with risk awareness and agricultural cognition playing a larger indirect role. Conclusion: Based on the empirical results, this paper suggests actively guiding farmers with migrant work experience to adopt new agricultural technologies, and encouraging return migrant labor with the intention of resettling in rural areas to engage in agriculture again, to further promote the adoption of new agricultural technologies. [ABSTRACT FROM AUTHOR]

Green pesticide use, as a key means to reduce pesticide use, plays a crucial role in promoting environmental and food safety. However, the effectiveness of green pesticide use policies in China falls short of expectations. Existing research mainly examines the policy promotion issues of green pesticide use from a static and single-agent perspective. However, green pesticide use behavior is a dynamic process influenced by multiple factors, including the government, farmers, and consumers. This paper builds an evolutionary tripartite game model of the government, farmers, and consumers from the perspective of dynamic strategy evolution and explores the evolutionary conditions that affect the stability of the tripartite game strategy during green pesticide application. The results show that 1) through different partnership models, the government, farmers, and consumers can evolve to a stable state. 2) Keeping the government’s regulatory intensity in the market for green agricultural products within a reasonable range will help farmers apply green pesticides. 3) Users’ preference for high-quality vegetables will increase the market selling price of green products. 4) Maintaining the government’s ecological subsidies for green pesticides will help stimulate farmers’ enthusiasm for using green pesticides. Therefore, the government should appropriately strengthen ecological subsidies and market supervision, guide consumers’ green consumption behavior, and encourage farmers to use green pesticides. [ABSTRACT FROM AUTHOR]

The rapid development of digital finance has effectively reduced financial challenges in rural regions and created new prospects for agricultural production. This article examines the impact of digital financial development on rice production in Sichuan Province using the 2011–2021 Peking University Digital Financial Inclusion Index and data from 20 prefecture-level cities, as well as a fixed effects model. The mechanism of action is also discussed. The findings reveal that the advancement of digital finance plays an important role in boosting the expansion of rice production, and that digital finance influences rice output by increasing farmers' willingness to participate in insurance and increasing the availability of credit. A heterogeneity analysis reveals that digital finance has a substantial effect on mountainous and economically poor areas. As a result, this article suggests that the breadth and depth of usage of rural digital finance, as well as the development of rural digital financial services in underdeveloped areas, should be expanded. [ABSTRACT FROM AUTHOR]

With the growing trend of arable land abandonment, the potential threat to the security of the food supply has sparked public concern. In order to examine the impact of non-agricultural employment on food security, this study builds linear regression models for research based on panel data from counties in China's old revolutionary base areas. The empirical results show that, although the impact of non-agricultural employment on total grain production is not significant, it has a significant negative impact on both area and productivity, which indicates that non-agricultural employment poses a challenge to food security. In addition, the study examines the potential benefits of non-farm employment on two aspects of food security, including intensive management and the increase of new business entities. Non-farm employment can also significantly promote intensive management, thereby reducing the food-security challenges brought by non-farm employment, while the benefits of new management entities are insignificant. These findings contribute to the optimization of economic policies related to agricultural development, including exploring land property rights reform systems to promote land transfer, strengthening labor quality improvement in the agricultural sector, and formulating supporting policies to stabilize non-agricultural employment in accordance with local conditions. [ABSTRACT FROM AUTHOR]

With the rapid evolution of the rural digital economy, analyzing the impact of digital literacy level on farm households' formal borrowing is crucial for easing credit constraints and fostering rural economic growth. Leveraging the data from the 2020 China Family Panel Studies (CFPSs) and applying binary probit models and the Karlson–Holm–Breen (KHB) method, this study delineates the positive correlation between the digital literacy level and increased formal borrowing among farm households. The findings, which were robust against endogeneity and robustness tests, underscore the role of digital literacy level in augmenting farmers' earnings and social networks, with a notably stronger mediation by earnings. The effects are particularly significant for middle-aged and older, less educated males in the central and western regions, in contrast with younger, highly educated females in the east. This research advocates for enhancing rural digital infrastructure and education, alongside financial system reforms, to advance rural financial development and support sustainable rural revitalization. [ABSTRACT FROM AUTHOR]

Farmland mortgages are expected to drive county agricultural economic growth (CAEG) as a crucial component of furthering the reform of the rural land system and the reform of the rural financial system against the new backdrop of the new era. This study gathers panel data from 2045 Chinese counties from 2011 to 2020 and uses the difference-in-differences method and the synthetic control method to systematically examine the effects of China's farmland management right mortgage loan (FMRML) pilot program on CAEG. The FMRML pilot program was implemented in 2016, and this research is presented as a quasi-natural experiment. The findings indicate that there is a "policy trap" and that CAEG has not been successfully promoted by the FMRML pilot program. The reason for this is because the pilot program has made county resource mismatch worse, making it unable to fully realize the promotional effect on CAEG, rather than significantly activating the three key drivers of agricultural economic growth: people, land, and money. The impact of the FMRML pilot policy on CAEG is not uniform, according to the results of the heterogeneity study, with a substantial "blocking" effect only in the central region and no significant influence in the western, northeastern, or eastern regions. The findings propose that in order to optimize agricultural mortgage policy and advance CAEG, China and other emerging nations can benefit greatly from the insights this study offers. [ABSTRACT FROM AUTHOR]

Based on panel data from 2009 to 2021, covering 30 provinces in China, we have been constructed the Rural Financial Risk Index using the objective entropy weighting method to study rural financial risk in China systematically from the perspective of spatial distribution. Specifically, we discuss the spatial distribution, regional differences and dynamic evolution of rural financial risk across Chinese four different regions divided into the Northeast, East, Central and West. It's found that Local government debt and Land transfer income are the two primary determinants influencing the level of rural financial risk in China. Furthermore, we conclude the ranking value of rural financial risk across four regions that the central exhibits the highest level, followed by the West, the East, and finally the Northeast, where the reasons for such ranking results as follows. Firstly, although the highest level of risk among provinces in the West is equivalent to that in the Central, there exists a smaller minimum rural financial risk in the former compared to the latter. Then, it should be noted that there's a low-low agglomeration of rural financial risk in the Northeast, while it demonstrates a high-high agglomeration in the Central according to the Moran Index test analysis. Again, there's a declining trend in rural financial risk disparity within the region and an upward trend is observed when comparing different regions (except the East vs West), especially increase largely between the Northeast and Central in past two years after analyzing the decomposition of Dagum Gini coefficient. Moreover, we study the absolute differences and dynamic evolution in different four regions through three-dimensional diagram of kernel density estimation, and it's found that the change of rural financial risk in four regions moved to the right as a whole, while the tail distribution remains inconspicuous. The absolute difference is diminishing in the Northeast, and the two-level differentiation characteristics tend to weaken as a whole in the Central, with a disordered wave peak height observed in both the East and West. Finally, the article presents pertinent policy implications but limitations according to the research findings. [ABSTRACT FROM AUTHOR]

The pivotal role of farmers' cropland conservation behavior (CCB) in advancing green agricultural practices is well-recognized. This paper underscores the critical role of stable land tenure in enhancing farmers' CCB, exemplified by the practice of mulch recycling. Drawing on a survey of 349 cotton farmers in Xinjiang, Northwest China, it offers a systematic examination of how land tenure stability influences CCB and its underlying mechanisms. The findings reveal a significant positive correlation between land tenure stability and CCB. Notably, this relationship is mediated by the facilitation of land mortgages, wherein written contracts and extended land tenure durations enhance farmers' participation in land mortgages, thereby bolstering CCB. Furthermore, the stabilizing effect of land tenure on CCB also mitigates the negative impacts of risk aversion and time preference. The study additionally highlights the differential effects of land tenure stability based on farm size and technical training; its facilitative role in CCB is more pronounced among larger-scale farmers and those engaged in technical training. [ABSTRACT FROM AUTHOR]

This study explores the impact of bank market structure on firm innovation in China using a two-way fixed effects model. Our analysis is based on a dataset comprising 2,412,316 firm-city level observations. Our findings suggest that there exists a U-shaped relationship between bank market structure and firm innovation in China. Specifically, we identify that the financing channel is a crucial pathway through which bank market structure influences firm innovation. Moreover, our results indicate that this relationship is mainly driven by small firms and innovative firms, and is more pronounced in regions with stronger intellectual property rights protection or greater openness to foreign markets. In sum, this study contributes to the existing literature by advancing our understanding of the impact of bank market structure on innovation in Chinese firms. [ABSTRACT FROM AUTHOR]

Introduction: The construction of digital villages is widely acknowledged as a way to achieve the "dual goals" of high quality of the agricultural and rural economy and common prosperity under the digital China strategy. Studies have explored the socio-economic benefits of different aspects of rural digitization, but few have focused on the productivity role of rural broadband development in the context of the urban-rural broadband divide. The purpose of this paper is to explore the relationship between rural broadband development and agricultural total factor productivity (TFP) and the intrinsic mechanism of action, and to provide empirical evidence on the productivity effect of promoting digital transformation in rural agriculture. Methods: Using panel data from 31 provinces in China from 2011 to 2020, this paper investigates the impact and mechanism of rural broadband development on agricultural TFP from the perspective of agriculture-related loans by setting up a two-way fixed effects model, a mechanism effects model and a threshold effects model. Results: The results find that rural broadband development has a significant role in enhancing agricultural TFP. Heterogeneity analysis indicates that the productivity-enhancing effect of rural broadband development is remarkable only in the central region and the region with higher rural disposable income. Mechanism analysis points out that rural broadband development can increase agricultural TFP by influencing the share of farm-related loans. Threshold analysis further reveals that the role of increasing the share of farm-related loans on agricultural TFP is marked only after rural broadband development reaches a certain level. Discussion: These findings can provide practical guidance for other developing countries in accelerating the digital transformation of villages and optimizing factor allocation to achieve high-quality agricultural development. [ABSTRACT FROM AUTHOR]

With frequent occurrences of global public events, the prices of national grains continue to soar. As one of the countries with the largest populations globally, China has always regarded food security as a fundamental cornerstone of its development. However, with the continuous emergence of factors such as urbanization, scarcity of land resources, and climate change, China's food security faces unprecedented challenges. Hence, this study empirically examines the impact of digital inclusive finance on multi-dimensional food security based on panel data from 30 provinces in China from 2011-2020. The research found that China's multi-dimensional food security level from 2011-2020 showed a stable yet rising trend, with the spatial pattern of each location generally consistent with the overall trend. The Theil index for China's multi-dimensional food security showed an upward trend from 2011-2020. Digital inclusive finance can promote multi-dimensional food security. The breadth of coverage and depth of use of digital inclusive finance have a significant promoting effect on safeguarding multi-dimensional food security, while the degree of digitization has not played a promoting role. Digital inclusive finance mainly ensures multi-dimensional food security through two pathways: promoting urbanization levels and enhancing marketization levels. [ABSTRACT FROM AUTHOR]

China's agricultural economy has been hindered by insufficient accumulation of agricultural capital and credit constraints. It is worth investigating whether China's county financial marketization reform policy can alleviate these constraints and promote high-quality development of the agricultural economy (HQDAE). This paper presents an empirical analysis of the impact of county financial marketization reform on the HQDAE, based on county panel data. The focus is on the mechanism of county urbanization in the above relationship. The results show that county financial marketization has a significant non-linear impact on the HQDAE. Specifically, it has a 'U-shaped' impact on the overall growth of the agricultural economy and an inverted 'N-shaped' impact on the quality improvement of the agricultural economy. Secondly, the relationship between county financial marketization and the HQDAE is influenced by a threshold effect based on the level of county urbanization. As the level of county urbanization increases, the promoting effect of county financial marketization on HQDAE also increases significantly. Additionally, county financial marketization helps to promote county urbanization and accelerate urban-rural integration, which in turn leads to HQDAE. The research in this paper suggests that county-level local governments should promote a differentiated county financial system. In the early stages of financial market-oriented reform, the government should enhance the capacity of financial services in rural areas through tax breaks, policy incentives, and other measures to prevent financial leakage from agriculture. In the later stages of financial marketization reform, the government should strengthen financial supervision to prevent financial resources from being diverted from industry to capital. Moreover, to achieve the HQDAE, it is necessary to promote county financial market-oriented reform and accelerate the construction of county urbanization. This will help break the dual economic structure of urban and rural areas and promote the flow of financial capital, technology, and human capital from county cities to rural areas. [ABSTRACT FROM AUTHOR]

Global warming affects food security and ecological security, and it threatens economic stability and sustainable agricultural development. The transformation and development of agriculture have significant implications for the achievement of the "dual-carbon" goals and the promotion of sustainable agricultural development. Based on panel data on organic dry farming in China from 2005 to 2020, this study aimed to comprehensively assess the transformation performance of organic dry farming (TRODF) in 15 provinces. It explored the impact of the transformation of organic dry farming on carbon emissions by utilizing a spatial Markov chain and spatial measurement models. Our findings are as follows: (1) The performance of the organic dryland agriculture transformation has gradually improved and is accompanied by a corresponding trend of fluctuating regional disparities, which are on the rise. Moreover, the disparities between the five major regions mainly stem from intra-regional differences. (2) TRODF agriculture presents the possibility of state transfer during different periods, featuring four convergent zones: a lagging zone, a starting zone, a crossing zone, and an advanced zone. The spatial Markov chain indicates that state transitions typically occur between adjacent levels, with fewer instances of "jump"-type transitions. Moreover, there is a clear trend of differentiation in the state transitions between non-adjacent areas. (3) The organic dry farming transformation exhibits a significant carbon reduction effect, which is characterized by heterogeneity across different stages of agricultural development, provinces, and time periods. This study emphasizes that economic and industrial transformation, along with the transformation of the ecological environment, represents a crucial direction for conserving resources and achieving a further reduction in carbon emissions. [ABSTRACT FROM AUTHOR]

Informatization, a vital element in economic development, plays a pivotal role in shaping rural areas by promoting efficient resource allocation and fostering the prosperity of high-income rural farmers. This research delves into the intricate relationship between informatization and the enhancement of farmers' income, revealing a variety of perspectives on the matter. The research explores three distinct angles that highlight the complexities of the relationship between informatization and the growth of income in rural areas. Through rigorous analysis, the study aims to provide insights into the interplay between informatization and farmers' income growth. It identifies challenges and opportunities in the process of rural digitalization, such as the incomplete industrial chain of agricultural digitalization and the need for enhanced agriculturalmarket information platforms. The study also underscores the importance of increasing farmers' digital literacy as a means to broaden income growth avenues. In doing so, the research strives to contribute to a more balanced and equitable rural society in China. This investigation employs various research methodologies, including panel analysis and threshold effect analysis, to explore the multifaceted relationships between informatization and farmers' income growth. The findings of this study provide valuable insights for policymakers and stakeholders involved in the ongoing development of rural areas and in ensuring the equitable distribution of wealth in China. [ABSTRACT FROM AUTHOR]

The aim of this paper is to analyze the impact of the digital transformation of banks on their systemic risks. We find that the digital transformation of commercial banks can significantly inhibit the systemic risk of banks, and this conclusion is still valid after considering the endogeneity of the model. The bank's digital transformation reduces its systemic risk by increasing its own competitiveness. Further analysis shows that the reduction of banks' marginal costs due to digital transformation is a key factor in promoting banks' competitiveness as the mechanism by which digital transformation reduces banks' systemic risk. The role of bank digital transformation in reducing systemic risk is heterogeneous, which is more obvious in large commercial banks, commercial banks that have not established financial technology subsidiaries, and systemically important banks. [ABSTRACT FROM AUTHOR]

The article discusses the growth of non-state banks and financial institutions which support the function of the banking system in China since 2009. Topics include the strong demand for capital by the real economy which led to the development of shadow banking, the factors that drive the growth of credit and the development of the insurance market and assets managed by insurance firms.

The literature on microcredit programs has largely focused on positive socioeconomic outcomes and low accessibility issues in farming areas and has provided less insight into the effects of easily acquired microcredit in pastoral areas. Using a case study approach, and econometric models, this paper addresses this gap by examining why and how easily acquired microcredit loans in Inner Mongolian pastoral areas increase the risk to the financial security of households or livelihood risk. Results show that existing microcredit programs increase livelihood risk because loan and repayment requirements do not align with the husbandry production cycle of contemporary Inner Mongolian pastoralists. This misalignment forces pastoralists to borrow from usurers to repay bank loans. Furthermore, households that need to borrow from usurers typically own smaller numbers of livestock and are less likely to be able to repay the usurers by selling animals. Instead, they tend to increase their bank loans in the coming year to repay the previous year's debt, trapping them in a vicious and ultimately impoverishing circle of annual loans they cannot fully pay back, and feeding increasing debt. We suggest that microcredit programs in semiarid areas should be in sync with the local production cycle and recognize environmental constraints that cause high variation in production seasonally and year to year. Our results supplement previous findings on microcredit applications and are particularly pertinent for other semiarid areas of the world., (© 2021. Royal Swedish Academy of Sciences.)

Chinese farmers need loans. It's hard for them to borrow from formal lenders like banks or even the rural credit cooperatives. Thus, to satisfy their financial needs, farmers borrow from informal lenders. While farmers have benefited from the post-Mao reform in many respects, financial reforms of the past three decades have failed to create an effective system in which farmers can borrow from formal lenders. To create an effective and efficient financial system that can meet farmers' needs, it is necessary for informal lenders to play an active role in rural finance. China's rural finances face four key problems: asymmetric information, a lack of collateral, the unique structure of costs and risks, and the nonproductive use of loans. Informal lenders have an advantage in solving these problems. This article proposes the creation of a financial system in which informal lenders play an active role in lending to farmers and formal and informal lenders cooperate with each other. It develops the argument based on the first author's field research in the provinces of Guangdong, Henan, Jilin, Shaanxi, Shandong, and Shanxi. [ABSTRACT FROM AUTHOR]

Improving food total factor productivity is a necessary way to break the double constraint of resources and environment, and promote the transformation of the food production system and the realization of the sustainable development goal of zero hunger. Based on the panel data of 729 counties in China from 2010 to 2019, this paper analyzes the effect of county financial marketization reform on food total factor productivity by using a two-way fixed effects model, focusing on the mechanism of the quality of factors such as land, labor and capital. The results show that county financial marketization reform promoted food total factor productivity growth by promoting technical progress, while technical efficiency did not play a significant role. Heterogeneity analysis shows that the effect of county financial marketization reform on grain total factor productivity is not significantly different in eastern and central China. There is a significant difference in the western region, where county financial market reform hindered the growth of grain total factor productivity. In terms of different functional areas of grain production, the facilitating effect is only played in the main grain production area, and the inhibiting effect is played in the main grain marketing area. Mechanistic analysis shows that the county financial marketing reform promoted the growth of food total factor productivity by improving the quality of labor and land, while the quality of agricultural capital has a masking effect. On this basis, it is necessary for the government to implement differentiated financial market-oriented reform strategies, and to guide and encourage county financial institutions to provide financial services to improve the quality of agricultural labor and farmland through tax incentives and loan interest subsidies. [ABSTRACT FROM AUTHOR]

Large scale agricultural business entities (hereinafter referred to as "the large scale entities") are newly sprouted in the process of China's agricultural transformation from traditional production to modern mode, while the improvement of agricultural total factor productivity is an important driving force to realize agricultural transformation in China. Therefore, it is of great significance to explore whether the former has a promoting effect on the latter. First of all, the effective improvement of agricultural total factor productivity by the large scale entity development is analyzed from the two aspects of scale effect and technology utilization effect, and the effect mechanism is discussed in depth in this paper. Secondly, empirical test was carried out by using the panel data of prefecturelevel cities from 2015 to 2020. The benchmark regression results show that the development of large scale entities can significantly improve agricultural total factor productivity. The mechanism test results indicate that the development of large scale entities improves the agricultural total factor productivity by raising the agricultural mechanization level. The results of heterogeneity analysis show that the difference between large scale entities would affect the benchmarking results. Therefore, it is believed through the study as discussed in this paper that devoting greater effort to support the development of large scale entities is an important measure to improve agricultural total factor productivity and promote China's agricultural transformation, but it is necessary to act according to local conditions based on the difference of entity types in the process. [ABSTRACT FROM AUTHOR]

This paper expounds the theoretical logic among digital inclusive finance, urbanization, and agricultural mechanization level, puts forward the research hypothesis, and then selects the county unbalanced panel data of 1309 counties in China from 2014 to 2020 based on the two-way fixed model with standard error clustering to county level and mediating effect model for empirical data regression analysis. Through baseline regression analysis, mediation effect analysis, and heterogeneity analysis, the findings of this paper are as follows. First, digital financial inclusion has a significant positive effect on the growth of agricultural mechanization. Second, digital inclusive finance at the county level can also indirectly affect the growth of agricultural mechanization through urbanization. That is, agricultural mechanization has an intermediary effect between the financial agglomeration at the county level and the growth of farmers' income. Third, the impact of county-level digital financial inclusion on the growth of agricultural mechanization level is significantly heterogeneous, and the promoting effect is significant in areas with balanced grain production, national-level poor county or contiguous areas of dire poverty, and areas with a good foundation for digital financial inclusion. By analyzing digital inclusive finance, urbanization, and agricultural mechanization, this paper proposes targeted policy recommendations. First, the government can promote agricultural mechanization by developing digital financial inclusion. Second, the government should guide and accelerate the process of digital financial inclusion, promoting urbanization thereby amplifying the positive impact of digital financial inclusion on agricultural mechanization. Third, given the heterogeneity of the impact of digital financial inclusion on agricultural mechanization, local development should focus on developing different dimensions of digital financial inclusion according to specific conditions. [ABSTRACT FROM AUTHOR]

Enhancing the synergies between agriculture and related sectors in rural areas is considered an important development strategy to eliminate rural poverty. This article provides evidence for this view by analyzing the effect of industry convergence between agriculture and related sectors on rural poverty. Based on China's provincial panel data, we use two-way fixed effects model, system generalized method of moments and panel-corrected standard error estimator to quantitatively assess this effect. We find that: (1) the convergence of agriculture and tourism (ATOU), the convergence of agriculture and processing industry (APOS), and the convergence of planting and breeding industry (MIXA) have positive and significant effects on poverty reduction. The convergence of agriculture and the internet industry (AINT) has a positive but not significant effect. (2) Rural local employment plays an important role as a bridge in the impact of convergence on poverty reduction. ATOU and MIXA reduce poverty by increasing self-employment opportunities. APOS reduces poverty by providing more jobs. (3) Except for APOS, the effects of other types of convergence tend to stabilize or improve in the later period. (4) Convergence has the most significant impact on poverty reduction in western China. The findings provide inspiration for developing countries with agricultural foundations to choose appropriate rural development paths for reducing rural poverty. [ABSTRACT FROM AUTHOR]

Based on the panel data of 31 provinces in China from 2005 to 2020, this paper analyzes the mechanism and spatial spillover effect of agricultural insurance on the urban–rural income gap using a fixed effect model, an intermediary effect model, and a two-stage least square method. The results show that agricultural insurance has a significant inhibitory effect on the income gap between urban and rural areas. This inhibitory effect is realized through the path of "improving the development level of agricultural insurance-improving agricultural total factor productivity-reducing the income gap between urban and rural areas", in which the intermediary effect of agricultural total factor productivity accounts for 19.74% of the total effect. At the same time, the income gap between urban and rural areas in China exhibits typical spatial agglomeration characteristics. The western region has always been the region with the largest income gap between urban and rural areas, while the eastern region is the region with the smallest income gap between urban and rural areas. The development of agricultural insurance has had a spatial spillover effect on the income gap between urban and rural areas, and the development of agricultural insurance in neighboring areas expands the income gap between urban and rural areas in this region. In order to prevent the siphon effect, agricultural insurance investment should be increased in the neighboring regions. The results of this paper support the view of the resource flow model. Finally, we put forward some suggestions for the development of agricultural insurance, improvement in agricultural total factor productivity, and the narrowing of the income gap between urban and rural areas. [ABSTRACT FROM AUTHOR]

In the context of China's rural revitalization and expanding digital economy, this study aims to elucidate how digital financial inclusion technologies can better allocate financial resources across newly evolved agricultural entities—such as family farms, farmers' cooperatives, and agricultural enterprises. By employing structural equation modeling (SEM) based on the Unified Theory of Acceptance and Use of Technology (UTAUT), we identify key determinants affecting farmers' credit availability. Our results emphasize the overwhelming role of Digital Financial Inclusion Technology Applications (DAs) in a wide range of financial variables, particularly credit availability (CA). Notably, performance expectation did not exert a significant impact on credit availability, while variables like effort expectation, facilitating conditions, and especially social influence were significant contributors. As for social impacts, social influence emerged as a multifaceted enabler, encouraging collective support within farmer communities and thereby facilitating credit accessibility. In conclusion, our study reinforces the critical influence of DAs in molding the financial landscape and recommends targeted interventions that leverage these technologies and social dynamics to boost financial inclusion and drive rural prosperity. [ABSTRACT FROM AUTHOR]