Inclusive finance and employment: Can financial development improve peasant's entrepreneurship?

This paper explores the relationship between peasant entrepreneurship and financial inclusion throughout China. Chinese data for the period 2006–2013 and global data from the Global Entrepreneurship Monitor were analyzed by using descriptive and coupling model. Our results suggest that the degree of coupling between financial inclusion and peasant entrepreneurship is higher in regions of financial underdevelopment than in other regions. This indicates that two distinct types of peasant employment exist as a result of different investment priorities in credit markets. In this paper, we provide new insights on financial breadth in supporting peasant entrepreneurship.