Study On Farmers'Financial Literacy And Family Asset Selection In Gansu Province

With the maturity of domestic and foreign research on family finance,more and more scholars begin to focus on family asset selection behavior and its influencing factors.The theory of family asset selection originated from the classical portfolio theory in the West.However,a large number of empirical studies have found that there is a big gap between theory and practice.So some scholars began to introduce new explanatory variables,such as demographic characteristics and background risk.Recently,some scholars have proposed to add financial literacy to the traditional influencing factors to explore the impact of financial literacy on household asset selection.With the cooperation of Xi'an University of Technology and Lanzhou University of Technology,this paper explores the impact of financial literacy on household financial market participation probability and the proportion of financial assets by using Probit and Tobit model,and puts forward corresponding countermeasures and suggestions for the development of rural finance in Gansu Province based on the research conclusions.The results show that:(1)the level of fi nancial literacy between farmers and farmers in poverty-stricken areas of Gansu Province is low and significant,the mean value of financial knowledge,financial attitude and financial behavior is low,and the enthusiasm of participation and investment in financial markets is not high;(2)the proportion of farmers participating in formal financial risky assets,financial risky assets(including fexternal borrowing)and investment housing.The proportion of allocation is not high,which indicates that farmers" financial concept is conservative and their inve.stment is cautious;(3)The empirical results of Probit and Tobit confirm that the financial literacy of farmers' families is positively correlated with the probability of their participation in risky financial assets investment,and positively correlated with the proportion of financial assets in the total assets,which indicates that the higher the level of financial literacy of farmers' families,the higher their family participation funds.The higher the possibility of financial risk market the higher the proportion of holding financial risk assets;(4)Financial literacy can reduce the demand and supply of informal financial markets,i.e.external borrowing,and thus reduce the proportion of external borrowing in the total assets of households.