Does rural Households’ financial literacy affect the household portfolio choices in poverty alleviation areas?

Abstract

This study investigates the influence of financial literacy on rural households' portfolio decisions in poverty alleviation regions. Findings reveal that enhanced financial literacy significantly increases both the extent and depth of households' engagement with financial risk assets. Financial literacy, encompassing knowledge, behavior, and attitudes, shapes investment approaches, with rural households often displaying conservative tendencies. Additionally, E-commerce promotion supports market participation, underscoring "wealth" and "identity" effects in portfolio choices, though without a noticeable "crowding-out effect" on venture capital investments.