Farmers’ personality traits and credit exclusion: Evidence from rural China

Unlike existing research from the perspective of financiers or farmers’ financial literacy, this Manuscript investigates the impact of personality traits on Chinese farmers’ credit exclusion using data from 2018 to 2019 of China Agricultural University’s Rural Inclusive Finance Survey. The empirical findings show that farmers’ personality traits significantly affect their credit exclusion. Specifically, conscientiousness and extroversion alleviate the credit exclusion, while agreeableness significantly intensifies the credit exclusion. In addition, the Blinder–Oaxaca decomposition method is used to analyze the contribution of personality traits to each dimension of credit exclusion, and the results of the study show that personality traits mainly affected farmers’ self-exclusion. Therefore, to develop inclusive finance in China, training and improving farmers’ positive personality traits must be fostered.