Digital finance, entrepreneurial choice, and the risk resistance of rural households

The rise of digital finance provides a new pathway for enhancing the ability of rural households to withstand economic shocks. Based on empirical research using three waves of data from the China Household Finance Survey (CHFS), this paper demonstrates that the development of digital finance can significantly strengthen the risk resistance of rural households. This effect is primarily achieved through two mechanisms: stimulating entrepreneurial activities and promoting fixed asset investment. Furthermore, a higher level of education among household members can amplify these positive effects of digital finance. The study also finds that the risk-mitigating function of digital finance is more pronounced in regions with higher levels of data capitalization and more developed traditional financial infrastructure.