Research on the Measurement and Determinants of farmer's Financial Literacy in Western of China from the Perspective of Financial Inclusion

It is the important part of rural financial inclusion construction to cultivate farmer's financial literacy. This paper constructed financial literacy evaluation index system and standard index from dimensions of financial awareness, financial knowledge and financial capability, and empirically analyzed the real level and determinants of farmer's financial literacy in western of China by using 908 questionnaires. Such results show that:the overall level of farmer's financial literacy in western China is relatively low, while the level of new professional farmer and entrepreneurial farmer is obvious higher than others; the impact of education, income, social capital, financial development and information technology ability are significantly positive while the impact of age and distance to financial institution outlets are significantly negative. So we put forward to carry out financial knowledge and skills popularization activities, to promote the construction of financial institutions in rural areas, and to expand the team of farmer's financial literacy promotion.