A Study On The Impact Of Financial Literacy On The Borrowing Demand And Borrowing Status Of Large-scale Farmers

Agricultural issues are related to the national economy and people's livelihood.Farmers' difficulties in financing,persistence and lack of willingness to expand their business,etc.continue to pose new challenges to China's agricultural development.Farmers 'own funds are insufficient,and credit constraints exist in financing,which makes it difficult for farmers to supplement and maintain their production and operation funds,which greatly reduces their willingness to produce and operate.As an important part of the main body of new agricultural management,large-scale planting farmers play a supporting and leading role in agricultural development in the new period,and their development is highly valued and strongly supported by the state.The characteristics of large-scale farming households with large production scale and high cash flow make them more dependent on external production and operation funds.How to solve the problem of credit constraints faced by large-scale farmers will help consolidate their willingness to produce and operate in agriculture,revitalize the liquidity of funds in rural financial markets,and provide vitality for rural economic development.This study attempts to explore ways to solve the problems of low production willingness and difficulty of financing for large-scale farmers from the perspective of financial literacy.Based on the existing research and guided by the theory of planned behavior,this paper attempts to verify the hypothesis that increasing the financial literacy level of large-scale farmers can strengthen their production and operation willingness and alleviate credit constraints.First,this article uses the 2015 data from the China Family Finance Survey and Research Center of Southwestern University of Finance and Economics(CHFS2015)to combine the local division criteria for the size of the farming households with the perspectives of the Credit Suisse Research Institute's 2016 Global Wealth Report.The medium and high-scale farmers were selected as the research object of this paper.Secondly,this paper uses the axiomatic method of the Sarma Inclusion Synthesis Index to construct financial literacy indicators and analyzes the factors affecting financial literacy.Thirdly,this paper uses Probit model and Tobit model to explore the empirical part,and uses instrumental variable method and score summation method to test the empirical results endogenously and robustly.Finally,the paper draws the following conclusions: First,the financial literacy level of large-scale farmers is generally low.Age,education,physicalhealth,and annual household income significantly affect the financial literacy level of farmers.Second,the level of financial literacy has a positive and significant impact on the willingness of large-scale farmers to integrate production and operation funds,the amount of production and operation funds required,and the choice of formal financial institution channels for financing.Third,financial literacy can increase the possibility that large-scale farmers can obtain external production and operation funds.The possible innovation of this article is that,first of all,this article introduces the opinions of the Credit Suisse Institute's2016 Wealth Report into this article's reference to the definition of the size of farming households,which enriches the classification methods of farming households.Secondly,this paper uses the axiomatization method of Sarma's synthetic inclusion index to construct a financial literacy evaluation system from the two dimensions of financial knowledge and financial capabilities,and then measures the financial literacy level of large-scale farmers,and explores the influencing factors of their financial literacy level.Third,guided by the theory of planned behavior and combined with empirical models,this paper concludes that the improvement of the level of financial literacy helps to increase the scale farmers 'willingness to maintain and expand their production and management,and to increase their external production and operation funds.