Analysis Of The Impact Of Social Capital On Rural Residents’ Household Consumption

Under the impact of multiple internal and external factors in recent years,the problem of insufficient domestic demand has long plagued China,which is not conducive to China’s economic transformation and upgrading development,so how to expand domestic demand and stimulate consumption has been a hot topic of research.Under the binary economic structure of Chinese society,there is a large difference between urban and rural incomes,and rural areas have lower disposable income compared with urban households,but the rural marginal propensity to consume is higher,indicating that there is more room for consumption growth in rural areas.It can be seen that the rural consumption market has great potential and is an important grasp for expanding domestic demand and stabilizing growth in the future.At present,academic studies on rural consumption issues are mostly explored from a macro perspective.As the influence of micro-level factors on household consumption becomes more and more profound,scholars mostly focus on economic factors,but economic factors are not the only determinants,and China’s special social factors cannot be ignored.In Chinese vernacular societies,blood and geographical ties formed by marriage or childbirth or by using geographic space as a linkage,together constitute a stable social network in rural areas.This social structure has important significance in rural production,life and social interaction.Meanwhile,with the in-depth application of digital technology in the financial field,the impact of financial literacy on consumption has gradually been noticed.Therefore,it is important to further explore the relationship between social capital,financial literacy and rural household consumption,and this paper takes it as an entry point to analyze their impact on household consumption of rural residents in China.Drawing on domestic and foreign theories on social capital,financial literacy and consumption,this paper compares and analyzes the consumption and consumption structure of rural residents and the literature related to social capital and financial literacy,divides social capital into three dimensions:close social capital,connected social capital and bridging social capital,and constructs an evaluation system of financial literacy in three dimensions:financial knowledge,financial awareness and financial ability,using 2018 China Household Tracking Survey database(CFPS),OLS model is applied to explore the influence of social capital and financial literacy on rural residents’ household consumption and consumption upgrading.The instrumental variables approach is adopted to address the endogeneity and robustness tests are conducted using replacement core variables,while the heterogeneity of their effects is analyzed from the perspectives of consumption class,income,household life-cycle stage and region,and finally mediating effects are tested.The results show that close social capital,connected social capital and financial literacy can effectively promote rural residents’ household consumption,while bridging social capital has a negative impact on rural residents’ consumption;all three types of social capital and financial literacy are conducive to the upgrading and optimization of their consumption structure,and various factors,except social capital and financial literacy,can influence rural residents’ household consumption.The results of the intermediary effect test show that financial literacy has a partial intermediary effect.