Does Agricultural Digital Transformation Improve Access to Agricultural Productive Credit for Farmers?

This paper draws on survey data from 585 family farms in Jiangsu Province, China, in 2023. It endeavors to examine how farmers' utilization of information and communication technologies (ICT) in agricultural production and management affects their access to agricultural production credit. The results demonstrate that farmers who apply ICT more comprehensively in agricultural production and management are more inclined to obtain agricultural production credit. Intriguingly, these outcomes persist resilient even when taking into account selection bias and endogeneity issues.In terms of transmission mechanisms, agricultural digital transformation can facilitate farmers' access to agricultural production credit. Specifically, it does so by reducing the credit transaction costs related to bank loans and enhancing the efficiency of agricultural resource allocation. Furthermore, the heterogeneity analysis reveals that agricultural digital transformation is more conducive for smallholder farmers to acquire agricultural production credit from large banks. Finally, it is evident that the application of ICT in areas such as agricultural product sales and the management of agricultural digital equipment is more beneficial for farmers in attaining agricultural production credit.