Research On The Investment Choice Of Chinese Farmers From The Perspective Of Inclusive Financ

The United Nations formally introduced the concept of the "inclusive financial system" in the International Year of Microfinance in 2005.Once this concept was proposed,it received responses from all countries and was invested in the construction of an inclusive financial system.The main goal of inclusive finance is to eliminate financial exclusion and improve the entire financial system,especially to include the vulnerable groups excluded by traditional financial services into the formal financial service system so that they can enjoy the benefits brought by economic development.Welfare improvement.Consistent with the inclusive financial thinking,China’s five No.1 documents issued since 2004 all require vigorous development of rural finance.In December 2006,after the China Banking Regulatory Commission’s "relaxation of the banking industry’s entry threshold pilots in rural areas," a number of new types of financial institutions have emerged in rural areas in China,marking the beginning of a new phase of China’s rural financial reform.The process of building a new rural financial service system has gradually deepened.In keeping with the general trend of inclusive finance development,the Chinese government pointed out at the Third Plenary Session of the Eighteenth Central Committee of the People’s Republic of China,"To improve the financial market system,we must develop inclusive finance." In 2015,the State Council issued the Plan for the Promotion of Inclusive Financial Development,which clearly pointed out the composition and development requirements of the inclusive financial system in China.What Inclusive Finance emphasizes is the need to provide “sustainable,extensive,and accessible financial services” to the entire community,especially in less developed regions,and to low-income groups.The issue of "agriculture,rural areas and farmers" has always been the focus of our national livelihood issues.As a typical "vulnerable group" excluded by finance,improving the inclusive financial system helps farmers to enjoy the benefits of financial development on an equal basis.convenient.Therefore,studying the impact of inclusive finance on farmers’ investment has important theoretical and practical significance for achieving targeted poverty alleviation and promoting the healthy and sustainable development of the economy.The concept of "inclusive finance" has not only received the support of governments in various countries,but also attracted widespread attention from the academic community.Comprehensive scholars’ perspectives,the research on inclusive finance mainly focuses on the following four aspects: The first aspect focuses on the phenomenon of "financial exclusion" in inclusive finance,and considers that "dual structure" and financial repression are common in finance In the system,and financial desertification is widespread in regional finance,it is necessary to vigorously develop inclusive finance;the second aspect is to focus on the measurement of inclusive finance.Different scholars have different degrees of inclusive finance from a different perspective.Measure,but comprehensively,it is mainly measured from the three dimensions of financial penetration,financial service availability and financial exclusion;the third aspect,which is also the most studied by scholars,is the inclusive financial The results of the study agree that inclusive finance has a significant positive impact on increasing residents’ income and achieving the healthy and sustainable development of the economy.However,when analyzing formal and informal finance in detail,differences have emerged in different studies;fourth This aspect mainly focuses on the development of inclusive finance from the perspective of the popularity of financial knowledge and whether the government has a promising future.Investment,as one of the "troikas" for China’s economic development,plays an important role in economic development.The implementation of the reform of the household co-production contract system has changed the multiplicity of collective economic investment motivations,restored the farmers’ property rights and the right to choose jobs,and the micro-individual farmers have become the basic production units of agriculture.As a result,farmers took the stage of history with independent commercial producers.Rural inclusive finance plays an important role in promoting the growth of farmers’ income and constructing a harmonious new socialist countryside.The reform of the investment and financing system has made China’s investment entities diversified.It is against this background that research on peasant investment behavior is brought to the daily routine.There are not many related studies on how inclusive finance guides farmers to invest,or how the development of inclusive finance affects farmers’ investment choices.However,only by systematically examining the characteristics and regularity of farmers ’investment choices,on the one hand,it is possible to correctly estimate the tendency of farmers’ investment choices,and to correctly guide and regulate the investment behavior of farmers;on the other hand,it is possible to further improve China’s inclusive financial system will benefit more people and promote sustainable economic development.Therefore,this article conducts research from the following:First,based on scholars’ research on inclusive finance,the concept of inclusive finance is summarized,and its characteristics and connotations are pointed out.Second,based on the theory,the six dimensions of financial exclusion theory and the threedimensional theory of inclusive finance are summarized.The three dimensions of inclusive finance to be described in this article: financial penetration,availability of financial services,and most importantly,financial exclusion.Then,based on the three major effects of financial development on investment transmission in the financial development theory(threshold effect,poverty reduction effect,and exclusion effect),the inclusive financial transmission mechanism for farmers’ investment is analyzed.An in-depth analysis of the role of farmers in investment.In addition,the micro-theoretical analysis of farmers’ investment choices is based on the theory of income effects and substitution effects under budget constraints in microeconomics.Secondly,according to the classification of investment in the theory of investment economics and the State Council ’s 2015 “Promotion of Inclusive Financial Development Plan”,this paper divides farmers ’investment choices into non-financial investment and financial investment.The system is divided into two categories,the credit market and the insurance market.Based on the above theoretical transmission effects,several research hypotheses in this paper are proposed to analyze the different effects of inclusive finance on different types of farmers’ investments,and the empirical analysis is used to demonstrate the research hypotheses in this paper.Value selection model and propensity matching score method.Through relevant theoretical and empirical analysis,this article finds the following points: First,the increase in financial penetration has significantly promoted farmers’ participation in formal investment activities;second,in the actual operation of inclusive finance,formal and informal financial The impact of peasant investment is inconsistent,which is mainly caused by the inconsistency of the entry thresholds of the two.Although informal finance can make up for the lack of formal finance to a certain extent,its risks are huge and often lead to peasant investment in a vicious circle.Therefore,it is not recommended to develop informal finance;thirdly,reducing financial exclusion is conducive to promoting farmers ’participation in formal investment activities;fourthly,the "trickle effect" is not valid for Chinese farmers’ investment;fifthly,the development of rural insurance markets is not sound and insurance consumption The increase will help farmers to participate in formal investment activities.Specifically,this article is divided into the following seven chapters,and each chapter is summarized as follows:Chapter One Introduction.In this chapter,the background of the topic of this article is introduced first,and the research questions are derived from the background.At the same time,the theoretical and practical significance of the questions studied in this article are explained in detail.Then,the research content and research methods of this paper are introduced in detail,and the analysis framework of this paper is explained in detail.At the same time,the Qiancun survey database used in this paper is introduced,and the research scope of this paper and the specific analysis method used in this paper are explained.Finally,the innovation of this article is explained,and the lack of research in this article is explained.Chapter two is a literature review.This chapter sorts out the relevant research literature in detail and summarizes them.Because there are not many related literatures that directly study the impact of inclusive finance on investment,this article summarizes the relevant literature from two aspects: the study of inclusive finance and the study of farmers’ investment.From the perspective of inclusive finance,the research of related scholars mainly focuses on the development of inclusive finance,the measurement of inclusive finance,the role of inclusive finance on economic development,and the effectiveness of inclusive finance in the actual operation of the government.To study.From the perspective of researching farmers ’investment,related research mainly focuses on pointing out the problems in farmers’ investment,but the empirical analysis is not much.In the end of this chapter,the authors’ opinions are summarized and related researches are reviewed to further clarify the innovation points and related research issues of this paper.The third chapter is related concepts,theories and econometric models.In this chapter,we first make a brief description of the theoretical development of inclusive finance,and then lead to the concept of inclusive finance.Based on this,we clearly define the concept of inclusive finance,point out its common cognitive errors,and clarify its common cognitive errors.Connotation and clarify its characteristics.Secondly,based on the relevant theories of inclusive finance measurement in academia,the three dimensions chosen to describe inclusive finance in this paper are discussed:financial exclusion,penetration,and availability.At the same time,according to the definition and classification criteria of investment in investment economics,the different types of peasant investment choices in this paper are defined,and the market segmentation of the inclusive financial system is carried out in accordance with the State Council’s 2015 Plan for the Promotion of Inclusive Financial Development.Based on the three major transmission effects in financial development theory and the income substitution effect in microeconomic theory,this paper analyzes the theoretical transmission mechanism of inclusive finance for farmers’ investment in actual operation and the "trickle effect" mentioned in related academic research.Finally,the measurement model used in the subsequent chapters of this article is introduced.Chapter 4,this chapter is based on the "Thousand Villages Survey" data,and studies the impact of inclusive finance on farmers’ financial investment and nonfinancial investment under the theoretical framework of the three-dimensional theory of inclusive finance and the theoretical transmission path to investment.The choice of model and propensity matching score method for data analysis.The study found that the increase in financial penetration has a positive impact on farmers ’securities,lowers the threshold for financial entry,increases the supply of formal financial institutions services,and eliminates financial exclusion is also conducive to increasing farmers’ investment The enthusiasm can enable farmers to invest funds in higher-yield fixed asset investment and securities investment,instead of depositing funds only in banks,but informal finance has a restraining effect on farmers ’investment and is not conducive to the formation of farmers’ correct investment outlook.Therefore,while developing inclusive finance in China,we need to guide farmers’ correct investment concepts,give farmers formal financial services that meet their own needs,eliminate informal financial institutions,and establish corresponding regulatory mechanisms so that inclusive financial benefits can be shared by the entire population.Chapter 5,the impact of inclusive finance on farmers’ formal and informal financial investments.Based on data from the “Thousand Villages Survey” project of Shanghai University of Finance and Economics,this chapter examines the issue of farmers’ formal and informal financial investment choices from the perspective of inclusive finance.The data was analyzed through the binary selection model and the propensity matching score method.The study found that inclusive finance has different effects on farmers’ formal financial investment and informal financial investment,and formal financial institutions and informal financial institutions have The role of choosing different types of financial investments is also inconsistent.In addition,this chapter also finds that the "trickle effect" does not hold up in China’s farmers’ financial investment.For this reason,while developing inclusive finance,China needs to provide different services to farmers with different resource endowments,establish corresponding supervision mechanisms,and popularize financial knowledge,so that inclusive financial benefits can benefit the entire population.Chapter 6,the choice of consumption and investment of farmers’ commercial insurance under inclusive finance.Based on data from the "Thousand Villages Survey" project of Shanghai University of Finance and Economics,this chapter examines the impact of farmers ’commercial insurance consumption on farmers’ investment choices from the perspective of inclusive finance.The study found that the increase in farmers’ commercial insurance consumption significantly promoted farmers’ willingness to participate in financial investment activities,which was not significant for nonfinancial investments,and after controlling the endogenousness of the self-selection process,the promotion effect was still significant.This article further analyzes the impact of farmers ’purchase of commercial insurance and participation in formal and non-formal financial investments in financial investment.The study finds that the popularity of commercial insurance in inclusive finance will help increase farmers’ participation in formal financial investment activities,and Investment is not significant,and the spread of insurance knowledge has a significant positive impact on farmers’ participation in formal investment.This shows that the popularity of insurance in the inclusive financial system has a significant positive guiding role in guiding farmers to form a correct investment outlook and participating in formal investment activities.The inclusive financial system should be further improved to develop rural insurance and provide production and investment activities for farmers.provide assurance.Chapter 7,conclusions,policy recommendations and prospects.This chapter first summarizes the regression results of Chapters 4 to 6 and concludes the research conclusions of this article.Specifically,first,the increase in financial penetration has significantly promoted farmers’ participation in formal investment activities;second,the practicalities of inclusive finance In the process of operation,the impact of formal and informal finance on farmers’ investment is inconsistent.The services of formal financial institutions promote farmers’ participation in formal investment activities.The services of informal financial institutions inhibit farmers’ participation in formal investment activities,and informal financial institutions often It will cause farmers’ investment to fall into a vicious circle,so it is not recommended to develop informal financial institutions.Third,reducing financial exclusion is conducive to promoting farmers’ participation in formal investment activities.Fourth,the "trickle effect" is not valid for Chinese farmers’ investment.The development of the rural insurance market is not sound,and the increase in insurance consumption is conducive to farmers’ participation in formal investment activities.Secondly,for each research conclusion,put forward corresponding policy recommendations.Finally,this article also looks into the possible future research directions.