The Impact Of Credit Restriction On Rural Family Wealth

Since ancient times,the countryside has lagged far behind the city in economy,education,medical treatment and other aspects,but since the implementation of the strategy of Rural Revitalization by the state,great changes have taken place in rural areas.In recent years,the economy of rural areas has been developing continuously,the income of farmers has been increasing,and the wealth value of rural households has increased rapidly.At the same time,the state provides more financial services for rural residents,thereby alleviating the credit constraints on rural families.Therefore,it is of great practical significance to study the impact of credit constraints on the wealth of rural households in China.Based on the new perspective of credit constraints,this paper explores the impact of credit constraints on rural household wealth.Firstly,this paper uses the data of China Family Financial Survey(CHFS)in 2017 to analyze the impact of rural credit constraints on household wealth using OLS and 2SLS methods.This study finds that rural credit constraints have a significant negative impact on family wealth.Family size,family participation in the stock market,family ownership of automobiles have a significant positive impact on rural family wealth.Age growth of head of household,educational background of head of household,work of head of household and married head of household have a significant positive impact on family wealth.When head of household is in poor health,it will negatively affect family wealth.Family wealth;when the head of household is risk averse,it will positively affect family wealth.Secondly,this paper explores the relationship between credit constraints and rural household housing wealth and household financial wealth.Research shows that credit constraints have a significant negative impact on rural household housing wealth and household financial wealth.Furthermore,we use the quantile regression method to estimate that credit constraints have the greatest impact on household wealth in the middle wealth group,while credit constraints have no significant impact on households in the low wealth group and the high wealth group.Through heterogeneity analysis and comparison,we find that rural credit constraints have the greatest impact on household wealth in central China,followed by Eastern China,and have no significant impact on household wealth in Western China.Credit constraints have a significant negative impact on household wealth in rural areas that do not engage in non-agricultural industrial and commercial production and operation,but have no significant impact on household wealth in non-agricultural industrial and commercial production and operation.Finally,we test the robustness of the estimation results by substituting variables and shrinking sample data.The regression results confirm the robustness of the results.The policy implication of this paper is that the government can take measures to ease the constraints of household credit and promote the accumulation of rural household wealth.