Research On The Influence Of Financial Capability And Credit Constraint On Farmers' Income

The increase in peasant income has always been highly valued by the Chinese government.The increase in peasant income is lower than that of urban residents and the growth momentum has been insufficient for a long time,which has led to a gradual widening of the income gap between urban and rural areas.The main reason is the slow development of rural economy,and the development of rural finance is directly related Adequacy of credit funds for farmers' production and operation,especially in the establishment and operation of modern agricultural production methods,capital investment is an important key factor,and the rural financial system is very important to effectively support the development of modern agricultural production.Due to the weak nature of agricultural production,the lack of collateral for farmers and the profit-seeking capital,a large number of farmers have been squeezed out of the financial market,and credit constraints are very serious.This long-term supply-type credit constraint has led to farmers' cognitive biases and behaviors.Deviations have largely restrained farmers' effective credit needs,coupled with the lower level of financial capabilities of farmers,and furthermore,under the existing rural financial system,farmers cannot effectively recognize and analyze their existing internal And external financial resources,it is difficult to find effective financial resource support for its own business behavior,thereby limiting the effective growth of its income.Therefore,with the continuous development of inclusive finance,Internet finance and digital finance have gradually penetrated into the financial field.In the face of such a “complex” financial environment,we have studied how to improve the rural financial system through the improvement of farmers 'own financial capabilities.With the continuous improvement of credit constraints,it is extremely important to stimulate farmers 'own production and management capabilities to the greatest extent,so as to continuously increase farmers' income levels.The thesis summarizes the relevant literature on financial capacity,credit constraints,and farmers 'income research at home and abroad,defines the basic concepts of financial capacity,credit constraints,and farmers' income,and uses the theory of feasible capacity,credit rationing theory,financial restraint and financial deepening theory.Relying on the basis of field survey data in the Guanzhong area of Shaanxi Province,the level of financial capabilities,credit constraints,and household income levels of farmers in the survey area were analyzed.An index system for financial ability evaluation was constructed from four dimensions of financial knowledge,financial skills,financial attitudes,and financial behaviors.The factor analysis method was used to measure the financial ability of farmers.The semi-logarithmic model was used to empirically study the impact of financial capacity and credit constraints on farmers 'income.Based on the consideration of the endogenous existence of financial capacity and credit constraints,the empirical analysis of the impact of the interaction between financial capacity and credit constraints on farmers' income was also conducted.Finally,combined with empirical research conclusions,relevant countermeasures and suggestions are proposed.The research conclusions of this article include:(1)About financial capacity and farmer income.Financial capabilities,financial knowledge,financial skills,and financial attitudes all significantly positively affect farmers' income.For each increase in financial capacity,financial knowledge,financial skills,and financial attitude,the corresponding income of farmers will increase by 0.9%,2.9%,6.2%,and 9.2%,respectively.(2)About credit constraints and farmers' income.The overall credit constraint level and the demand-type credit constraint level significantly negatively affect farmers 'income,while the supply-type credit constraint does not significantly affect farmers' income.Judging from the estimation results of other control variables,such as age,land area,the value of household physical assets,whether they know government or public institution personnel,and the distance from bank outlets all significantly affect farmers' income at different levels.(3)The impact of the interaction between financial capabilities and credit constraints on farmers' income.With the improvement of financial capacity,the restraint effect of credit constraints on farmers' income has been effectively alleviated.Among them,financial knowledge and financial skills have made more significant contributions to alleviating the restraint effect of credit constraints on income.When the household credit constraints are constant,the higher the financial ability level of farmers,the higher the income level of farmers.According to the research conclusions,the thesis proposes countermeasures and suggestions from three aspects: building a complete financial capacity cultivation system;improving financial capacity building methods and channels;optimizing financial services and reducing credit constraints.