Interaction Mechanism Of Human Capital And Rural Poverty

Poverty is a common social problem all over the world,it exists in every country,especially in developing country.As the biggest developing country,China has got huge achievement in the past 30 years,and has contributed much to the poverty alleviation of the United Nation.But the occurrence of China’s New Normal,some problems happened to the poverty alleviation,especially to the poverty alleviation of rural.Firstly,as the income gap between urban and rural was enlarged,the effect which brought by the growth of economic to poverty alleviation was weaken slowly,the fund efficiency of poverty alleviation was also weaken;Secondly,due to the lack of resource of health care and education,the phenomenon that rural residents who has get rid of poverty back to poor life emerges while poverty reducing,especially serious in some year and some regions.Thirdly,as the economy enters new normal,slowing economic growth,manufacturing enterprises,which are mainly employment options for migrant workers,reduce the number of new employees drastically.The severe employment situation hinders the improvement of salary income of rural poor residents.Breaking through poverty problem is the key to completely build a well-off society,and one of the core links of completing the two 100-year goals successfully." 13th Five-Year Plan" stressed the need to attach importance to rural poverty,which confirm that poverty alleviation in rural areas have reached the crucial moment like fortified village.General Secretary Xi Jinping made many important speeches on poverty.He put forward the "Five batch " of poverty alleviation strategy,to seize the root causes of rural poverty,to attach importance to education,knowledge for rural poverty alleviation role,and to strengthen the construction of rural internal development momentum and sustainability of poverty reduction.So,it is necessary to carry out a systematic and in-depth analysis of the problem of rural poverty.This paper selects human capital,based on the theory of cyclical cumulative causation,this paper makes a systematic analysis of the mechanism of human capital and rural poverty from two perspectives:microcosmic and macroeconomic perspectives.The main contents are as follows:Firslyt,review the literature about the impact of human capital on rural poverty from the micro and macro perspectives.This paper find that most of the scholars only considering education or health to substitute human capital to analysis the impact of human capital on rural poverty,while neglect the comprehensive of human capital.What’s more!The macroeconomic analysis mainly focuses on the empirical analysis of effect about economic growth and income distribution on rural poverty,but lacking the whole analysis framework of the effect of the economic growth effect and income distribution effect of human capital on rural poverty.Secondly,this paper analyzes the current situation of rural poverty and human capital in China,and finds that rural poverty tends to the areas with very low human capital,such as mountainous areas,old revolutionary base areas,ethnic minority areas and border counties.And these ares exist a cycle cumulative causal relationship between rural poverty and human capital,namely,low human capital→rural poverty→low human capital→rural poverty.Thirdly,analyzing the cycle cumulative causal relationship between human capital and rural poverty from the microscopic perspective.The first is conducting theoretical analysis based on interaction mechanism between the various parts of human capital and rural poverty,and concluded that the low level of investment in education,health and relocation human capital can effectively improve the income of the residents and alleviate poverty.However,due to insufficient investment in education and medical care in rural areas,the burden of education and medical care in rural areas is too heavy,which leads to the negative movement of human capital and rural poverty cycle.Then,carrying out the empirical analysis about the mechanism of education,health and migration of human capital investment on rural poverty using the PVAR model based on 25 provinces in China’s rural panel data,and find that there exist a cyclical cumulative causal relationship between human capital and rural poverty.Fourthly,it analyzes the mechanism of cumulative causal movement between human capital and rural poverty from a macro perspective.First of all,combing the mechanism between the economic growth effect and income distribution effect of human capital and rural poverty from theoretical perspective.This paper find out that human capital will promote economic growth through the distribution of factors and industrial structure,and also can reduce income gap,thereby enhancing the overall effect of poverty alleviation.Then,by analyzing the relationship between human capital,economic growth,income distribution and rural poverty through VAR model,this paper come to conclusion that human capital has a direct and indirect relationship with the cumulative movement of rural poverty,and it explains the extent of rural poverty accounted for 60.8%.Thus,breaking the vicious circle of poverty in rural areas must pay attention to human capital in rural areas.In summary,this paper theoretically analyzes the relationship between human capital and rural poverty,and uses the method of measurement to do empirical test,to practice for the government departments to develop rural poverty alleviation policy reference.