The Research Of Household Financial Exclusion Based On The Perspective Of Financial Literacy And Social Capital

Finance is the core of modern economy and the blood of real economy.In recent years,China has deepened the reform of the financial system,improved the financial market system,provided more financial services,but also has made great breakthroughs in the development of the financial industry.However,the financial exclusion can restrict the development of China's financial industry,and affects the sustainable and healthy growth of China's economy.In addition,financial exclusion reduces the efficiency of financial resource allocation and restricts household to get financial products and services.Therefore,it is very important for the development of China's financial industry to study the main influence factors of household financial exclusion and find effective solutions to alleviate it.On the basis of the existing research,this paper discusses the impact of financial literacy and social capital on household financial exclusion in China.This paper mainly studies from the following four aspects: firstly,this paper introduces the realistic background of financial exclusion in Chinese family,and summarizes the purpose and the significance.Second,through sorting out relevant literatures at home and abroad,we can determine the research ideas and methods,and draw the technology roadmap.Third,it defines the concepts of household financial exclusion,financial literacy and social capital,and discusses relevant financial theories.Fourth,this paper compares the differences in the financial exclusion between rural and urban family.Fifth,factor analysis method was used to measure the level of household financial literacy,and social capital includes structural social capital and cognitive social capital.Fifth,we adopt Probit model to discuss the relationship between financial literacy,social capital and household financial exclusion.And with the help of instrumental variable,we study the influence of financial literacy and social capital on household financial exclusion.Furthermore,we use the orderly Probit model to analyze the impact of financial literacy and social capital on the extent of household financial exclusion.The research conclusions of this paper are as follows:(1)Financial exclusion is a common phenomenon in Chinese family,and it is more serious in rural family than in urban family.(2)The family with low financial exclusion degree has high financial literacy level and rich social capital.(3)The improvement of financial literacy can not only reduce the probability of household financial exclusion but also reduce the degree of financial exclusion.Both structural social capital and cognitive social capital play a positive role in alleviating financial exclusion.According to the research conclusions,this paper has three suggestions from the perspective of government and family:(1)In order to alleviate the problem of financial exclusion,the government should strengthen the publicity of financial education,encourage the launch of financial education and adopt a variety of flexible methods to popularize financial knowledge.(2)Household should objectively and accurately evaluate their financial literacy level,positively adopt various ways to learn financial knowledge and strengthen their financial ability,so as to improve their financial literacy level and reduce the probability and the extent of financial exclusion.(3)Financial resources prefer families with abundant social capital.Hence,actively building social capital also is effective.