A Study on the Impact of Digital Inclusive Finance on Farmers’ Income — Based on Mediation Effect Model Testing

Based on panel data from 30 provincial regions in China from 2012 to 2023, this study empirically tests the impact of digital inclusive finance on farmers’ income and its mechanism using the double fixed-effect model and the mediation effect model. The results show that digital inclusive finance has a significant positive direct impact on farmers’ income. For each unit increase in the digital inclusive finance index, farmers’ per capita disposable income increases by 0.144 to 0.170 units. Per capita GDP and non-agricultural employment are important mediating pathways through which digital inclusive finance influences farmers’ income, with the mediation effect accounting for 30% and 45%, respectively. Heterogeneity analysis indicates that this promoting effect is more significant in the eastern, western, and northeastern regions, while the central region shows weaker effects due to constraints like digital infrastructure and industrial structure. Based on these findings, it is recommended to strengthen the construction of rural digital financial infrastructure, innovate financial products that cater to non-agricultural industries, enhance the integration of digital technology with agricultural industrial chains, and accelerate the transformation of rural labor employment structures. Additionally, improving regional differentiation policies can increase the income-enhancing effectiveness of digital inclusive finance in different areas.