The Relationship between Financial Literacy and Income Structure of Rural Farm Households: Evidence from Jiangsu, China

Huidan Xu, Kun Song, Yichao Li and Martinson Ankrah Twumasi ()
Additional contact information
Huidan Xu: College of Economics, Sichuan Agricultural University, Chengdu 611130, China
Kun Song: College of Economics, Sichuan Agricultural University, Chengdu 611130, China
Yichao Li: College of Economics, Sichuan Agricultural University, Chengdu 611130, China
Martinson Ankrah Twumasi: College of Economics, Sichuan Agricultural University, Chengdu 611130, China

Agriculture, 2023, vol. 13, issue 3, 1-15

Abstract: Improving the income of rural residents is a requirement for poverty alleviation in all countries. Based on China Land Economic Survey (CLES) 2021 data, this paper investigates the homogenous and heterogeneous relations between financial literacy and the income structure of rural farm households. It finds that financial literacy is significantly related to farmers’ income levels, which still holds after the robustness testing. Regarding the structure of household income, financial literacy has a more profound association with farmers’ property income than wage income. Moreover, it has a relatively weak impact on transfer income with significance. Financial literacy has a more significant role in increasing the income of farmers with higher income levels than lower income levels. Moreover, it has different impacts on the income structure of different income groups. Therefore, this paper suggests that the government should co-operate with county-seated financial institutions to provide farmers with regular financial literacy education.

Keywords: financial literacy; heterogeneity; income structure; rural households (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/2077-0472/13/3/711/pdf (application/pdf)
https://www.mdpi.com/2077-0472/13/3/711/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jagris:v:13:y:2023:i:3:p:711-:d:1101278

Access Statistics for this article

Agriculture is currently edited by Ms. Leda Xuan

More articles in Agriculture from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().