How Digital Financial Inclusion can Drive the Revitalisation of Rural Industries: Taking the Agricultural Product Processing Industry as an Example

Digital inclusive finance provides a new opportunity to alleviate the contradiction between financial supply and demand in the agricultural product processing industry, which is of great significance in boosting the revitalisation of rural industries. Based on China’s provincial panel data from 2011-2022, the effects and mechanisms of digital inclusive finance on different agricultural product processing industries are analysed. The study shows that digital inclusive finance has a significant positive impact on the agricultural product processing industry, and this impact effect is more significant in the central and western regions of China as well as the main grain producing areas. Digital financial inclusion has a significant positive impact on the food and timber processing industry, while the impact on the clothing, rubber and paper products processing industry is not significant, digital financial inclusion significantly and positively affects the agricultural products processing industry by promoting technological innovation and improving the degree of marketisation in these two paths. It is recommended to strengthen the construction of the digital inclusive financial system, promote the high-quality development of the agro-processing industry through the promotion of technological innovation and the improvement of marketisation, and improve and formulate the support policies for regional differentiation and industrial differentiation.