Research On The Impact Of Financial Literacy And Financial Exclusion On Household Consumption Of Farmers

Expanding domestic demand and boosting consumption are the focus of promoting China’s economic development.China is a dual structure of urban and rural areas.There is a big difference in consumption between urban and rural areas.There is still a huge consumption potential in rural areas to be released.Expanding rural domestic demand has become the key to building a new development pattern and enhancing the resilience of China’s economic development.Finance plays an irreplaceable role in the process of economic development,and its relationship with consumption is getting closer and closer.We should pay attention to the important role of finance in promoting consumption growth,learn to use financial means to promote consumption,solve the problem of insufficient rural development,and release the consumption potential of rural areas.Rural consumption is inseparable from the good financial literacy level of residents,and is closely related to the financial availability and financial market participation of residents.After comprehensive consideration,this thesis selects two factors: financial literacy and financial exclusion.Firstly,it discusses the impact of financial literacy on farmers’ household consumption and the impact of financial exclusion on farmers’ household consumption.Secondly,on the basis of the regression of financial literacy on financial exclusion,it further analyzes the intermediary effect of financial exclusion in the impact of financial literacy on farmers’ household consumption,which is of great significance for improving rural residents’ consumption and expanding domestic demand.On the basis of combing relevant literature and conceptual theory,this thesis adopts a combination of qualitative and quantitative methods.The main contents and conclusions of this thesis are as follows:(1)Using the survey data to measure the financial literacy and financial exclusion indicators of farmers,and analyze the financial literacy,financial exclusion and consumption status of farmers.The study found that the overall level of financial literacy of rural households is low,and the overall level of financial exclusion is high;the average household consumption expenditure is basically the same as the overall average level in Inner Mongolia,and the quality consumption expenditure is increasing.(2)Using multiple linear regression model,using the least squares(OLS)empirical analysis of the impact of financial literacy on household consumption.The study finds that the improvement of financial literacy promotes the increase of total household consumption expenditure,survival consumption expenditure and quality consumption expenditure.The quantile regression results show that financial literacy has a more obvious impact on the high-end of household consumption.Heterogeneity analysis results show that financial literacy has different effects on household consumption at different ages and income levels.(3)Using the least squares method(OLS)to empirically analyze the impact of financial exclusion on household consumption.The study found that financial exclusion has a significant negative impact on household consumption,that is,the higher the degree of exclusion,the less consumer spending,and different types of financial exclusion have different effects on household consumption.(4)Using the mediating effect test model to empirically analyze the impact of financial literacy on household consumption under the mediating effect of financial exclusion.The results show that the improvement of financial literacy helps to alleviate financial exclusion;financial exclusion plays a mediating role in the impact of financial literacy on household consumption.With the improvement of financial literacy level,the degree of financial exclusion is alleviated,which promotes the consumption expenditure of peasant households to a certain extent.After reconstructing the financial literacy index and replacing the estimation method,it shows that the model is robust and reliable.Based on the research results,this thesis puts forward corresponding countermeasures and suggestions from three aspects: improving the level of financial literacy,constructing a long-term development mechanism of financial education,alleviating the degree of financial exclusion,improving the level of financial inclusion and improving the consumption level of rural residents,in order to promote rural consumption and economic growth.