Can Internet Use Improve Financial Literacy among Farmers? —Based on Field Surveys in the Provinces of Henan, Hunan, and Chongqing

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 disparities.