Does Digital Financial Inclusion Affect Agricultural Eco-Efficiency? A Case Study on China

Agricultural eco-efficiency can effectively reflect the coordinated green and balanced development of rural resources, and digital financial inclusion provides a strong financial power in the process of long-term balanced development of rural areas. There may be a complex relationship between the two. Therefore, based on the panel data of 30 provinces, autonomous regions, and municipalities in mainland China from 2011 to 2018, this paper explores the impact of digital financial inclusion on agricultural eco-efficiency through the differential GMM method. Further, the paper analyzes how digital financial inclusion influences agricultural eco-efficiency by influencing the agricultural scientific and technological investment. The following conclusions are drawn. First, there is a positive U-shaped nonlinear relationship between digital financial inclusion and agricultural eco-efficiency. Second, the impact of digital financial inclusion on agricultural eco-efficiency is of regional heterogeneity. Digital financial inclusion has a significant positive U-shaped impact on agricultural eco-efficiency in central China but has no significant impact on Eastern and Western China. Third, agricultural R&D investment will intensify the promotion effect of digital financial inclusion on agricultural eco-efficiency.