The Influence Of Financial Ability On Rural Household Consumption

Communist Party of China pointed out clearly in the report of the 19 th National Congress that consumption plays a fundamental role in promoting the development of Chinese economy,and China should further improve the mechanism for improving consumption.At present,China is still facing the problem of insufficient consumption,and insufficient domestic demand has become the constraint of China’s economic growth.However,the usual urban-rural dichotomy and the regional differences in economic development leads to the consumption level of rural households in western China obviously lower than that in central and eastern China.How to improve the household consumption in western rural region and cultivate the consumption growth potential is an important research topic.In the early 21 st century,the concept of financial ability was first proposed.A large number of studies have found that financial consciousness,understanding and application of financial knowledge and external financial availability contained in financial ability are closely related to household consumption behavior.The improvement of household consumption level relies on the aspiration of peasants to consume and their ability to make consumption decisions.In the digital era,farmers are faced with a more complex financial market,which requires farmers to have better financial ability to process information and manage risks,so as to make reasonable financial decisions and improve family welfare.Based on this,this paper will deeply explore the impact of financial ability on rural household consumption in western China and its mechanism.Based on the five provinces(municipalities)-west in Sichuan,Guizhou,Yunnan,Gansu province and Chongqing city the field survey data of rural households as samples,using OLS model,2 SLS model to explore China’s western region farmers financial ability to impact on family consumption scale and structure,and using the mediation effect model to examine the role of the financial ability of household consumption mechanism.Study found that:(1)in the five provinces(cities)in the western areas by survey data analysis,we found some farmers financial ability in the western region of relatively low,embodied in farmers lack of financial awareness,lack of financial knowledge,low participation rate of financial market,it is lead to farmers insurance market one of the reasons for the lower participation rate,the weakness of household consumption.(2)The improvement of farmers’ financial ability has a promotion effect on the total household consumption scale,and the financial ability has a more significant promotion effect on the enjoyment consumption,that is,the financial ability helps optimize the household consumption structure.(3)Financial capacity can influence the total household consumption scale by influencing the wealth scale,the use of consume credit and commercial insurance participation.(4)For households under the age of 30,the promotion effect of financial ability on total household consumption is stronger,and the promotion effect of financial ability shows obvious heterogeneity.For families in different income groups,there is no significant difference in the promotion effect of financial ability on household consumption.Possible contribution of this paper is to focus on rural families in the western region,from the financial ability of the Angle analysis possible path of financial ability to affect consumer spending,to promote the coordinated development of economy in our country,perfect the system of western region farmers financial education,improve the financial ability,release the consumption potential in the western region has important practical significance.At the same time,it also provides a new research Angle and beneficial thinking for the study of farmers’ consumption behavior in western China.