Abstract Based on the data of China Household Finance Survey (CHFS) in 2013 and 2015 with the Porobit and Tobit model, this paper studies the impact of different social interaction channels on rural households’ financial market participation and financial asset allocation. The results showed that the traditional embedding social interaction on the strength of genetic and geo-relationship has obvious resource repeatability but no significant effect on the financial asset allocation decision in rural China. The disembedding and online social interaction are free from the restriction of closed territory and homogeneous relations, which help rural households to obtain heterogenous information, and promote the participation of rural households in the financial market. It also affects the willingness of rural households to invest high-risk financial assets and enhance portfolio return. Moreover, by taking into account of potential endogenous problems and robustness tests, the results still hold. The policy implication is to focus on the positive effect of new social interaction on rural households’ financial market investment behavior, that is, to accelerate the construction of modern information, transportation and other infrastructure in rural areas. It is also necessary to improve the quality of financial information transmission in different media and improve rural households’ financial literacy through new social interaction channels.
WANG Ruoshi,HU Shihua. A Study of the Impact of Different Social Interaction Channels on Rural Households’ Financial Market Investment Behavior. Economic Survey, 2020, 37(6): 039.
2020, Vol. 37 
