|
|
iBusiness 2025
Can Internet Use Improve Financial Literacy among Farmers?
|
Abstract:
In the context of the digital economy, leveraging the widespread use of the Internet to enhance the financial literacy of farmers has become a crucial goal for strengthening financial capabilities and achieving comprehensive revitalization of rural areas. A crucial goal is to strengthen financial capabilities and achieve comprehensive revitalization of rural areas. This paper, based on a field survey conducted in the provinces of Henan, Hunan, and Chongqing, analyzes 625 firsthand questionnaire data. By employing the CRITIC method and entropy-weighted TOPSIS method, a new method of financial literacy was developed. By employing the CRITIC method and entropy-weighted TOPSIS method, a restructured evaluation index system for Internet use and financial literacy among farmers is created. Using multiple regression models, the impact of Internet use and financial literacy among farmers is analyzed. The study finds that overall financial literacy among the surveyed farmers is relatively low. However, the level and quality of Internet use positively affect the enhancement of farmers’ financial literacy, with the most significant improvement observed in financial literacy. However, the level and quality of Internet use positively affect the enhancement of farmers’ financial literacy, with the most significant improvement observed in financial attitudes, followed by financial behavior and financial knowledge. Individually, farmers with higher education levels and higher family annual income have generally better financial literacy, while no significant differences are found between genders. Further analysis of heterogeneity reveals that age and migrant status have a negative correlation with improvements in financial literacy. Further analysis of heterogeneity reveals that age and migrant status have a negative correlation with improvements in financial literacy. Geographically, the marginal effect of Internet use on financial literacy is strongest in the rural areas of Henan, followed by Chongqing, with Hunan having the least impact. These conclusions remain robust after stability tests. Devising scientifically effective public policies aimed at accelerating digital outreach in rural areas, genuinely improving and enhancing the financial literacy of farmers, and reducing the impact on financial literacy. This research provides empirical support for devising scientifically effective public policies aimed at accelerating digital outreach in rural areas, genuinely improving and enhancing the financial literacy of farmers, and reducing urban-rural income
| [1] | Gan, Y. (2017). Factors Influencing the Financing Capacity of Chinese Farm Households: Differences in Financing Channels. Economic and Management Review, 33, 12-18. |
| [2] | Gao, B. (2021). Farmers’ Internet Use, Financial Literacy and Bank Credit Support Level. Credit, 39, 80-87. |
| [3] | He, J., Ma, F., & Jiao, J. (2023). Internet Use, Social Capital and the Improvement of Rural Residents’ Dietary Quality—Analysis Based on Micro-Survey Data in Heilongjiang Province. Research on Agricultural Modernization, 44, 967-977. |
| [4] | Kun, W., & Shen, N. (2022). Research on the Influence of Cognitive Ability on Residents’ Financial Literacy. Research on Financial Issues, No. 3, 63-71. |
| [5] | Liang, P., & Guo, S. (2015). Social Interaction, Internet Access and Stock Market Participation—An Empirical Study in China. Journal of Comparative Economics, 43, 883-901. https://doi.org/10.1016/j.jce.2015.02.003 |
| [6] | Liu, H. H., Li, S. P., & Wang, Q. (2016). Transformation of Knowledge View in the Era of “Internet+”: From Co-Construction and Sharing to Crowdsourcing and Co-Promotion. China Electrochemical Education, No. 12, 108-112. |
| [7] | Lusardi, A., & Mitchell, O. S. (2007). Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth. Journal of Monetary Economics, 54, 205-224. https://doi.org/10.1016/j.jmoneco.2006.12.001 |
| [8] | Malkewitz, C. P., Schwall, P., Meesters, C., & Hardt, J. (2022). Estimating Reliability: A Comparison of Cronbach’s α, Mcdonald’s wt and the Greatest Lower Bound. Social Sciences & Humanities Open, 7, Article ID: 100368. https://doi.org/10.1016/j.ssaho.2022.100368 |
| [9] | Sabri, M. F., & Awec, X. (2019). Financial Literacy and Related Outcomes: The Role of Financial Information Sources. International Journal of Business and Society, 20, 286-98. |
| [10] | Servon, L. J., & Kaestner, R. (2008). Consumer Financial Literacy and the Impact of Online Banking on the Financial Behavior of Lower‐Income Bank Customers. Journal of Consumer Affairs, 42, 271-305. https://doi.org/10.1111/j.1745-6606.2008.00108.x |
| [11] | Shen, Y., Hueng, C. J., & Hu, W. (2020). Using Digital Technology to Improve Financial Inclusion in China. Applied Economics Letters, 27, 30-34. https://doi.org/10.1080/13504851.2019.1606401 |
| [12] | Su, L. L., & Kong, R. (2019). Financial Literacy, Entrepreneurship Training and Farmers’ Entrepreneurial Decision-Making. Journal of South China Agricultural University (Social Science Edition), No. 3, 53-66. |
| [13] | Wang, Y., Zhao, Z., & Luo, Q. (2023). A Study of the Impact of Internet Use on Credit for Agricultural Production—Empirical Evidence from 9179 Households in Rural China. Forestry Economics, 45, 42-61. |
| [14] | Wen, L. (2022). A Study of the Impact of Internet Use on Rural Residents’ Online Consumption—Empirical Evidence from Chinese Household Tracking Survey Data. Agricultural Economics and Management, No. 5, 99-110. |
| [15] | Yin, Z., Yang, H., & Zhang, C. (2023). The Impact of Social Networks on Household Financial Exclusion. International Finance Research, No. 5, 22-33. |
| [16] | Zhang, Y., & Zhuang, T. (2023). Citizenship and Property Income of Agricultural Transfer Population—A Micro-Mapping Based on the Intersection of New Urbanization and Commonwealth. Rural Economy, No. 10, 91-103. |
| [17] | Zhang, Z. P. (2021). The Impact of Internet Use on Residents’ Financial Literacy. Journal of Beijing Technology and Business University (Social Science Edition), No. 6, 101-115. |
| [18] | Zhao, Z., Liu, X. Y., & Gao, C. Y. (2024). Does Internet Use Boost Household Financial Market Participation?—An Empirical Study Based on CFPS Data. Journal of Xiamen University (Philosophy and Social Science Edition), 74, 22-35. |
| [19] | Zhong, J. D., Qin, X. Z., & Liu, C. (2021). Internet Use, Financial Literacy and Financial Decision-Making—A Study Based on the 2013-2017 Chinese Household Finance Survey. Economic Theory and Economic Management, 41, 68-78. |
| [20] | Zhou, T. Y., & Zhong, Y. (2013). Financial Awareness and Its Impact on Farmers’ Borrowing Choices. Journal of South China Agricultural University (Social Science Edition), No. 12, 73-80. |
| [21] | Zhou, Y. Q., & He, G. (2020). The Impact of Digital Inclusive Financial Development on the Allocation of Financial Assets of Farming Households. Contemporary Economic Science, No. 3, 92-105. |
