The Impact Of Social Networks On The Wealth Accumulation Of Residents’ Families

Since the 18 th CPC National Congress,the CPC Central Committee has gradually placed common prosperity in a more important position,and China’s economic development has gradually shifted from a stage of high-speed growth to a stage of highquality development.However,in order to achieve high-quality development,we should not ignore the property assets ratio and the inequality of wealth distribution in the accumulation of household wealth.On the other hand,our country is a relational society,in the cultural history of more than five thousand years,human relations and relationships throughout.From ancient times to the present,Chinese residents have "relations",namely social network,on residents’ cultural life,information exchange and family economy has been increasingly influenced.Therefore,it is of great significance to analyze the influence of social network on Chinese residents’ family wealth accumulation.This paper selects the data of China Household Finance Survey(CHFS)conducted by Southwestern University of Finance and Economics in 2019.Firstly,relevant literatures on explanatory variables and explained variables are combed,relevant theories are summarized,and the status quo of Chinese residents’ family social network and wealth accumulation is analyzed.Secondly,appropriate variables were selected,and a benchmark regression model was built with family as the research unit to study the influence of social network on household wealth accumulation.The average value of gift expenditure of other families in the same district(county)was taken as the instrumental variable to solve the endogeneity problem.Thirdly,the regression results of the model were tested by replacing variables,changing samples and changing control variables.Then,the heterogeneity analysis was conducted on the influence of social network on resident family wealth from four aspects: urban and rural areas,regions,gender of household head and household income level.Finally,the mediating effect model is used to analyze the mechanism and channels of social network’s influence on household wealth accumulation.The results show that: people’s social network has crowding effect on household wealth accumulation;Social network has significant positive influence on wealth accumulation of both rural and urban households,and the influence on urban households is greater than that on rural households.In terms of regional differences,social networks in eastern,central and western regions all have a positive effect on the family wealth accumulation of residents in the region,but have no significant effect on the family wealth accumulation of residents in Northeast China.In terms of the gender of the head of household,social network has a significant positive impact on the wealth accumulation of both male and female households,and the impact of social network on the female head of household is greater than that of the male head of household.At different income levels,the impact is greatest for low-and middle-income families and least for high-income families.The level of financial investment plays a partial mediating effect in the promotion of household wealth accumulation by social network.Improving social network can promote household wealth accumulation by improving residents’ financial investment level.Based on the above conclusions,this paper puts forward the following policy recommendations: building harmonious communities,giving full play to the maximum effect of social networks;Increase the income and consumption level of residents and accelerate the economic circulation;Strengthen the education and publicity of financial knowledge and investment risk awareness to improve the investment and financial management ability of residents;We will coordinate development between urban and rural areas and between different regions and narrow the gap in people’s wealth.