Financial innovation, credit access, and policy support: building climate resilience in Chinese agriculture

Abstract

This study examines how climate-oriented financial mechanisms influence climate resilience (CR) in China's agribusiness sector. It focuses on the roles of financial innovation (FI), credit access (CA), government policy (GP), and the institutional environment (IE) in supporting agricultural adaptation. A quantitative research design was employed using survey data collected from 168 agricultural producers and financial institutions in China. Partial least squares structural equation modelling (PLS-SEM) was used to test the proposed relationships. CA significantly strengthens CR and emerges as the strongest direct driver of resilience. FI indirectly influences CR through the IE, confirming its mediating role. However, the direct relationship between FI and CR was negative, suggesting that FI alone may not improve CR without effective IE support. GP significantly moderates the CA–CR relationship, indicating that policy conditions shape the effectiveness of agricultural CA in building CR. Policymakers and financial institutions should promote inclusive, climate-oriented CA and tailored FI instruments while strengthening the IE through effective CA systems and enforcement mechanisms. This study integrates FI, CA, IE, and GP within a unified empirical framework and provides new empirical evidence from China on the financial and institutional determinants of climate-resilient agriculture.