Research On The Impact Of Financial Literacy On Farmer's Income

How to reduce investment errors and improve family economic welfare is one of the core issues concerned by household finance theory.With the development of inclusive finance and the continuous enrichment of various financial products,families' allocation and choice space of financial assets are also expanded.In this case,it is followed by a serious challenge to the financial literacy of the family economic decision-makers to rationally allocate their financial resources to enhance financial well-being.In recent years,scholars have paid more and more attention to the role of financial literacy in promoting family financial market participation,financing behavior and wealth accumulation,etc.However,the concern for farmers lacking financial literacy is relatively insufficient.In this context,this paper takes the farmer's household as the research object,analyzes the household's household financial literacy level in depth,and studies the influence of financial literacy on the income of farmers and its impact path.It is of great significance for the targeted improvement of rural household financial literacy,improvement of financial support policies in rural areas,and improvement of the economic welfare of farmers.Based on the analysis of relevant research at home and abroad,this paper uses the family financial survey data launched by the Survey And Research Center For China Household Finance in 2013 to investigate the current status of household financial literacy.The paper analyzes the impact of financial literacy on farmers' income and explores the mediating effects of family lending behavior,entrepreneurial behavior and financial market participation behavior on financial literacy affecting household income.The research conclusions are as follows:The level of financial literacy of rural households is low,and the level of financial literacy among different groups is significantly different.The mastery of financial literacy of farmer households is far lower than that of urban households and the national average,and there is a big difference in the level of financial literacy among different groups.Among them,farmers who are women,non-party members,farmers of high age,low level of education,and less attention to economic and financial information,have lower levels of financial literacy.Financial knowledge has a significant positive impact on household income.Financial knowledge has a significant and stable positive impact on the total household income,family business income,transfer income and property income.The results of heterogeneity analysis show that the influence of financial literacy on the household income of farmers is not regulated by traditional human capital such as education level and cognitive level.And the instrumental variable method is used to solve the endogenous problem and shows the robustness of the model regression results.Financial literacy has significantly promoted the probability of household finance activities such as lending,entrepreneurship,and financial market participation.Farmers' household borrowing behaviors,entrepreneurial behaviors,and financial market participation behaviors have significantly promoted the income of farmers' households to varying degrees.The results of the median model regression show that family financial behaviors such as lending,entrepreneurship,and financial market participation play a partial intermediary role in the process of financial literacy affecting the household income of farmers.We can know that there is a broad policy operation space for improving the financial literacy of farmers' families and promoting the rational allocation of financial resources by farmers' families to increase the income of farmers' families.