Financial Literacy,Farmland Property Rights Transaction And Farmers'Entrepreneurial Decisions

With the further implementation of the “mass entrepreneurship” strategy,the promotion of farmers' entrepreneurship is related to the overall situation of the transformation and development of rural entrepreneurial economy,the extending of industrial integration and accelerating of rural revitalization.Advancing the systematic research on the whole process of farmers' entrepreneurship from three aspects,basic decision-making,rational allocation of labors,and assets in entrepreneurship will help to enhance the total quality of farmer' entrepreneurship.In modern economic system with finance as the core pillar,the role of financial literacy in internal human capital in farmers' rational entrepreneurship decisions is becoming more and more prominent.In addition,as an important aspect of agricultural supply-side reform currently,the reform of farmland property rights system characterized by farmland transfer and farmland mortgage financing has effectively improves the allocation efficiency of farmland resources,and promotes the implementation of scale management of farmland,which provides essential driving force for the implementation and optimization of farmers' decisions about entrepreneurship.With the continuous development of farmland property rights system and farmland financial system,the determining factor in farmland property rights transaction behavior of farmers has gradually changed from relationship to economical ration,and their transaction behavior has changed from non-marketization to marketization,which requires higher financial literacy of farmers.The enhancement of financial literacy and the participation of farmland property rights transaction can promote the implementation of farmers' entrepreneurship and the optimization of their entrepreneurship decisions from two aspects,the improvement of individual internal ability and the alleviation of external resource constraints,respectively.What's more,financial literacy plays an important role in farmers' farmland property rights transaction.In this paper,farmland property rights transaction and entrepreneurial decisions are integrated into the same research framework in order to further explore the optimization mechanism of farmers' entrepreneurship decisions driven by financial literacy and farmland property rights transaction.Based on the theory of planned behavior,property rights economics,entrepreneurship theory and credit rationing theory,we construct an exploratory logical framework for financial literacy,transaction of farmland property rights,and entrepreneurial decisions from the perspective of factor flow.Furthermore,we collected survey data of 1947 household from Shaanxi,Ningxia and Shandong provinces of China for measuring farmers' financial literacy,and refining the characteristics of farmers' participation in farmland property rights transaction and entrepreneurial decisions.IV-Probit,IV-Poisson and IV-Tobit models were used to empirically examine the impact of financial literacy on farmers' basic decisions of entrepreneurship,decisions of labor and assets allocation in entrepreneurship.What's more,this paper employs the propensity score matching method(PSM)and instrumentalvariable method to analyze the impact of farmland property rights transaction which measured by farmland transfer and farmland mortgage financing on the basic decisions,labor allocation and assets allocation in entrepreneurship.Then this paper uses the mediation effect model and bootstrap method to empirically explore the intermediary effect of farmland transfer between financial literacy and farmland mortgage financing,also the intermediary effect of farmland transfer and mortgage financing in the relationship that financial literacy influencing the basic decisions of farmers' entrepreneurship,the decisions of labor allocation and assets allocation in entrepreneurship.The results suggest that our government should improve farmers' financial literacy from macro and micro levels,and promote the comprehensive reform of farmland transfer and mortgage financing coordinately.What matters most is to improve the design of interactive mechanism between financial literacy and the cultivation of rural factors markets,and also optimize the supporting policy for farmers' entrepreneurship.There is no doubt that increasing the participation of farmland property rights transactions,improving the overall incidence of farmers' entrepreneurship and optimizing the allocation of entrepreneurial resources are effective paths for farmers to enhance their income in a long-term.The main conclusions of this study are as follows.The lagging development of rural financial education system causes the average level of financial literacy of sample farmers is low,and there are obvious differences among individuals and regions.Farmers' participation degree in farmland transfer continues to increase,but the degree of marketization needs to be further improved.Farmland mortgage financing has become an vital financing choice for farmers who need investment funds.However,the participation rate of farmers' farmland mortgage financing is not high,and the amount of loans obtained is limited.The incidence of farmers' entrepreneurship needs to be further improved and there are obvious regional and industrial differences.Agricultural entrepreneurship is still an important choice for farmers' entrepreneurship.The incidence of labor force employed in farmers' entrepreneurship,especially short-term employment,is relatively high,while the overall scale of employment and the rate of sourcing in production links are relatively low.The investment in productive fixed assets accounts for a large proportion of farmers' venture capital,and farmers' participation in insurance and preventive savings are at a low level for risk prevention.Meanwhile,the average level of production and operating capital is relatively high.Regional differences in the allocation of labor force are mainly reflected in the decisions of long-term and short-term employment,and the regional differences in assets allocation are primarily reflected in productive fixed assets and insurance purchases.Financial literacy has a significant impact on the basic decisions of farmers' entrepreneurship,and also the decisions of labor force allocation and assets allocation.No matter farmers are engaged in which industry,agriculture,non-agriculture or multi-industry,financial literacy all plays a significant positive role in their choices.The impact of financial literacy on farmers' non-agricultural entrepreneurship is greater than its impact on agricultural and multi-industry entrepreneurship.Financial literacy has a significantly positive impact on short-term employment,long-term employment andproduction links outsourcing of entrepreneurial farmers.Financial literacy also has a significantly positive effect on farmers' investment in productive fixed assets,annual inventory assets,preventive savings for entrepreneurship,working capital holdings,and insurance purchase.Farmland transfer has differentiated effects on the basic decisions of farmers' entrepreneurship,also on the decisions of labor allocation and assets allocation.Farmland transfer-in and its scale significantly promote farmers' entrepreneurship decisions,especially agricultural entrepreneurship,which also significantly promotes the short-term and long-term employment decisions,and increases the probability of outsourcing in production links.Farmland transfer-in significantly increases the investment in productive fixed assets of entrepreneurs,the amount of preventive savings,and participation rate of insurance.And the larger the scale of farmland transfer-in,the more investment in productive fixed assets,annual inventory assets and turnover cash holdings of entrepreneurs,besides the higher the probability of purchasing insurance.However,farmland transfer-out and its scale significantly increase the probability of non-agricultural entrepreneurship,which also reduces the probability of short-term employment and the number of employees.Under the perspective of entrepreneurial decisions,the implementation effect of the reform on the transfer of farmland management rights is basically in accordance with the expected effect,and the above policies has spillover effect on farmers' welfare.Farmland mortgage loans significantly promote farmers' entrepreneurship,especially agricultural entrepreneurship.The policy implementation effect and expectation of the reform of farmland mortgage financing are consistent from the perspective of farmers' entrepreneurship decisions.Participating in farmland mortgage loans only significantly promotes the production links outsourcing decisions of entrepreneurial farmers and investment in annual inventory assets.The amount of approved farmland mortgage loans significantly promotes the long-term and short-term employment and outsourcing of production links,which also plays a differently positive role in investment in productive fixed assets,annual inventory assets,turnover cash holdings and insurance participation for entrepreneurs.Financial literacy significantly promotes farmers' rational participation and participation degree in the transaction of farmland property rights represented by farmland transfer and farmland mortgage financing.Farmland transfer-in transaction plays a partial intermediary role between financial literacy and farmland mortgage financing,while farmland transfer-out transaction has no intermediary effect between financial literacy and farmland mortgage financing.Farmland transfer and farmland mortgage financing both play an intermediary role in the relationship between financial literacy and farmers' entrepreneurship decisions.The scale of farmland transfer-in plays an intermediary role between financial literacy and farmers' entrepreneurship,financial literacy and agricultural entrepreneurship.The scale of farmland transfer-in plays an intermediary role in the relationship between financial literacy and farmers' short-term and long-term employment,but there is no intermediary effect between financial literacy and production links outsourcing.The scale of farmland transfer-in plays an intermediary role in the relationship between financial literacy andfarmers' investment in productive fixed assets,annual inventory assets,turnover cash holdings and insurance purchases,but there is no intermediary effect between financial literacy and decisions about preventive savings.The scale of farmland transfer-out plays an intermediary role between financial literacy and non-agricultural entrepreneurship,while the scale of farmland transfer-out does not play an intermediary role in the relationship between financial literacy and decisions of labor allocation and asset allocation in farmers' entrepreneurship.Furthermore,the amount of farmland mortgage loans plays a mediation effect between financial literacy and farmers' entrepreneurship,especially agricultural entrepreneurship.In addition,the amount of farmland mortgage loans plays a part of intermediary role in the relationship between financial literacy and farmers' short-term,long-term employment and production outsourcing,which also plays an intermediary role in the relationship between financial literacy and farmers' investment in productive fixed assets,annual inventory assets,turnover cash holdings and insurance purchase related to entrepreneurship.Farmland transfer transaction and farmland mortgage financing transaction play a chain intermediary role in the relationship between financial literacy and the basic decisions of farmers' entrepreneurship and agricultural entrepreneurship,but it doesn't play a chain intermediary role in the relationship between financial literacy and farmers' labor allocation and asset allocation in entrepreneurship.