The Impact Study Of Rural Finance Development On Anti-poverty In The Five Northwestern Provinces

Poverty is widespread in the world, threatening human existence and development. Slowing down and eliminating poverty is the common aspiration of humankind. Chinese government has been committed to the anti-poverty and has made a great achievement that the poverty incidence rate felled by 76.5% among more than 30 years. But the situation of our anti-poverty work is still grim. The CPC Central Committee and the State Council made a solemn commitment that all rural poor would out of poverty by 2020.By the year 2014, there are still 70 million 710 thousand rural poor people in China. Thus China’s anti-poverty work will be the top priority to achieve a comprehensive well-off society goal in the next five years. In recent years, financial development for poverty reduction is paid more and more attention. The scholars analyze the poverty problem from the angle of economic growth, income distribution and so on, but few have specialized in anti-poverty effect of rural financial development. Therefore, from the perspective of rural finance development, in-depth analysis of the mechanism of financial development on poverty alleviation in rural areas is conducive to extending the relevant theoretical research results.Based on the above understanding and thinking, this paper selects the most prominent areas of poverty in China- five provinces in the northwest. And the theme is that effects rural finance development on anti-poverty, in-depth analysis theory of financial development and poverty alleviation theory. Also, this article drew on relevant research results in domestic and foreign, built analytic framework, and made empirical analysis. It has a certain theoretical significance to enrich the study of rural financial poverty, and also has important practical significance for the future of the five provinces in the northwest to use financial tools to reduce poverty.In this paper, Chapter 1 introduces the background and significance of study and possible innovation and shortcomings; The second chapter which domestic and foreign scholars on the financial relationship between development and poverty alleviation was organized. And describes the theory of financial development, poverty alleviation theory and the mechanisms of financial poverty reduction, in order that it can be the following theoretical groundwork; Chapter 3 analyzes present poverty situation and financial development status of the five northwestern provinces withdata, graphics, text, etc; Chapter 4 is based on the foregoing theory and status analysis, selecting five northwestern provinces, panel data between 1990- 2013 year, total 24 years. First, extracted the two factors among six indicators by principal component analysis, namely to interpret external and internal factors of impacting rural financial operation. Then I fixed the panel data by regression analysis, and an empirical test for anti-poverty role of rural finance development.Chapter 5 concludes that rural financial development scale can significantly reduce poverty situation, but the rural financial development efficiency has a negative impact on poverty alleviation. The two factors represent internal and external development environment of rural finance are conducive to poverty alleviation. On the basis of this conclusion, this paper proposes to actively promote the reform of rural finance, develop a good operating environment of rural finance, respect the rural market rules and the spirit of innovation and other policy recommendations.