Research On The Influence Mechanism Of Financial Ecological Diversity On Residents’ Financial Literacy

With the development of national economy and the improvement of family income,more and more experts and scholars pay attention to the issues related to residents’ financial literacy.Residents’ financial literacy is a necessary condition for families to effectively purchase financial products,select financial institutions and make reasonable financial planning.However,the overall level of Chinese residents’ financial literacy is low,so it is of great theoretical and practical significance to study the key factors affecting residents’ financial literacy.At present,existing studies focus on the impact of micro-perspective factors such as residents’ demographic characteristics and economic status on their financial literacy,but there is no research on the impact of macro-financial environment on micro-residents’ financial literacy.This paper mainly discusses whether financial ecological diversity has an impact on residents’ financial literacy and attempts to analyze its mechanism from the intermediary variable of financial market participation.This paper uses the research data of Southwestern University of Finance and Economics CHFS in 2017 to construct financial literacy indicators through households’ answers to three questions about interest rate,inflation and risk.Simpson index method is used to construct financial ecological diversity index.Three dummy variables of bank market participation,securities market participation and insurance market participation are constructed respectively through CHFS research data.Probit and Oprobit models were used for empirical analysis,and stepwise regression method was used for mediation effect.Subsequently,the paper carried out three times robustness test.This study found that :(1)in terms of direct effects,the level of financial ecological diversity is positively correlated with residents’ financial literacy,which is significant at the 1% significance level.The marginal effect analysis results also show that financial ecological diversity is positively correlated with residents’ financial literacy,and this conclusion is significant at the 5% level.The result of marginal effect can be explained as: when the financial ecological diversity increases by 1 percentage point,the financial literacy level of residents increases by 8.51 percentage points.(2)the intermediary effect,by the stepwise regression method to participate in the financial market(that is,the banking market,the securities market,insurance market participation)of participation,respectively,the empirical analysis results show that the financial markets to participate in partial intermediary effect to residents’ financial literacy,the results showed that the residents’ financial literacy ascension is financial ecological diversity and financial markets are involved in the result of joint action.(3)In terms of robustness test,empirical analysis was carried out by replacing the year of financial market participation data,the index of financial literacy and the index of financial ecological diversity.The above three conclusions were consistent with the previous ones,indicating that the conclusion of this paper has certain robustness.According to the research conclusions,this paper believes that residents’ financial literacy can be improved from the following aspects: improving the degree of financial ecological diversity;Increase household participation in financial markets;We will improve planning for financial education services for residents.