The Influence Of Financial Literacy On Household Borrowing Behavior

The development of inclusive finance is one of the strategic directions of deepening financial reform and innovation in China,and easing credit constraints is its important focus.As the blood of modern economy,credit plays a role in resource allocation,which is conducive to supporting the development of emerging industries,expanding domestic,demand and driving economic growth at the macro level.At the micro level,it can smooth the fluctuation of consumption and income and improve people's living standard.However,due to the imbalance,inadequacy and imperfection of financial development,there are still widespread relatively severe credit constraints in China at present.Among them,the family,especially rural family,are "loans difficult" and have low availability of formal credit,which has become a bottleneck to achieve the comprehensive well-off construction and win the battle against poverty.Based on this,this paper studies the influence of financial literacy and related factors on household borrowing behavior from the perspective of credit constraint,taking the general family as the object of study and using the data of China Family Financial Survey(CHFS)in 2015By combing the existing literature,this paper theoretically analyses the influence mechanism and action path of financial literacy on household borrowing behavior,that is,financial literacy can improve household credit demand and ability to obtain credit,thereby alleviating the constraints of demand-based credit and supply-based credit,and reflect on the corresponding borrowing behavior.Based on this analysis,this paper puts forward five hypotheses.Based on the data of 2015 Chinese household finance survey,this paper makes a descriptive statistical analysis of the current situation of household borrowing behavior and financial literacy and the correlation between them.Through probit,?-Biprobit,Tobit,IV-Heckman and other econometric models,it further empirically analyses the influence of financial literacy on household credit behavior.The study found that:(1)Financial literacy has a significant positive influence on the formal credit demand of households,that is,households with more financial literacy are more likely to have formal credit demand.(2)Financial literacy has a significant positive influence on households'willingness to apply for loans,that is,households with a higher level of financial literacy are more likely to apply for loans to the bank,and the lower the probability of self-exclusion.(3)Financial literacy has a significant positive influence on the availability of formal credit and a significant negative influence on the availability of informal credit.In other words,the improvement of financial literacy can promote the households to obtain formal credit and reduce the households's demand for informal credit.(4)Financial literacy has a significant positive influence on household formal credit amount and a significant negative influence on household informal credit amount.In other words,the improvement of financial literacy level can promote households to obtain a larger scale of formal credit and reduce the scale of informal credit.(5)Financial literacy has a significant positive influence on the proportion of household formal credit,that is,financial literacy can improve the credit structure of households and help to improve the formal credit satisfaction of households.(6)The influence of Internet use on household borrowing behavior is similar to that of financial literacy,and households headed by women and those engaged in agriculture are more likely to be financially excluded.Finally,based on the research conclusions,this paper proposes relevant policy suggestions from the perspectives of the family itself,financial institutions and government departments in order to improve the level of national financial literacy and household credit constraints.