The Empirical Research Of Relationship Between Financial Development、Financing Services And Poverty

Poverty, as each economy will face a long-standing problem, has been a seriousproblem facing China’s economic and social development, and improvement inabsolute poverty, the gap between rich and poor continues to widen. Financialdevelopment is the market economy will be reflected, is also an important engine ofeconomic growth in China. However, how financial development affect povertyreduction? This article aims to finance development to financing services to the way ofpoverty reduction to proceed, from the micro level, to examine the channels of howfinancial development impact on poverty through financing credit.Start from the financial development and poverty definitions and measurement,to review the history of China’s financial development, as well as the introduction ofChina’s poverty and anti-poverty strategy. Then, we take it as a guide the relationshipbetween any two theories, the establishment of a financing services as an intermediaryof the conduction equation, collected from2000to2009, we try to give an empiricalanalysis with all provinces data, using the panel data simultaneous equation model inthese two relations, financial development and financing services, financing servicesand poverty, the unit root test and cointegration tests that were investigated, and theHausman test to determine the effect of choice of the model, and finally fitting theregression obtained the empirical analysis of the resultsThe results showed that: in the country, raising the level of financialdevelopment can contribute to the development of financing services, the improvementof the credit system; yet in financing services and poverty relationship has also positiveresults, showing the deepening of the financing of services, can increase the proportionof poor population as to total population income, which means they can actually get acertain extent to achieve poverty alleviation effect. Based on the empirical results, wecan obtain some of the targeted policy: it is important to accelerate the construction ofcredit guarantee system; policy support and legal supporting; improve the monitoring mechanism; and we should build a diversified financial services system. Ensure theestablishment and improvement of the financing service system, to obtain non-publiceconomic development through the improvement of the credit system, to promote thereduction in absolute poverty, to control the income gap, to reduce the relative povertyof the ultimate goal.