How farmland circulation affects household financial vulnerability in China: The chain mediation effect of labor transfer and financial literacy

Financial vulnerability is an important issue in livelihood resilience research domain. In the context of the Farmland Property Rights Reform in rural China and the promotion of farmland circulation, this study aims to explore whether and how household financial vulnerability is affected by farmland circulation and whether its impact shows heterogeneous characteristics depending on differences in farm household characteristics and regional characteristics. To answer these questions, a theoretical and empirical study was conducted based on the latest available Chinese household survey data (N = 9,822) from 2015 to 2019, using a chain mediating effects model and group regressions. The findings showed that farmland circulation could significantly reduce household financial vulnerability (Coef.=−0.167, p