A Study On The Income Effect Of New Type Of Micro-credit Poverty Alleviation

How to reduce the rural poverty,promote the growth of farmers'income and narrow the gap between urban and rural areas through credit support is a common concern of Chinese government and academia. As a new way of poverty alleviation, the new microfinance mechanism has great practical significance for guiding farmers 'production,promoting farmers'income and alleviating rural poverty. Based on the above analysis, the new microcredit theory should have great poverty alleviation effect, but the effect in reality still lacks relevant empirical research confirmation.Therefore,this paper studies the effect of the new microfinance on the poverty alleviation and influencing factors by investigating the income effect of the new microfinance.This paper illustrates the theoretical basis of the new microfinance,analyzes the difference between the new microcredit and the traditional microcredit, clarifies the current poverty situation in Fenghuang county,Hunan Province,and concludes the current situation of the development of the new microfinance. On the basis of this, taking the new microfinance project of Fenghuang County in Hunan Province as the research subject,based on a large number of actual research data, using the microscopic measurement method to establish the income decision regression model,studies the impact of the new microcredit on the income of the poor farmers and conducts an empirical analysis.The results show that: First, the new microcredit has a significant positive impact on the annual income of the poor households in Fenghuang County, Hunan Province, and the income effect of it is 23%. Second, the income effect of the new microcredit shows difference in different poverty-stricken areas. Particularly, it works better in poorer poverty-stricken area than general depressed area. And thirdly, the main labor force, other funds,the age of the head of household, the size of cultivated land and the education level for the head of household are also the influencing factors of the income of the poor households. According to the research results, the following countermeasures are put forward: First,the government should increase the propaganda of new microfinance and raise the awareness of poor farmers on the new microcredit policy. Secondly,expand the scope of poverty alleviation of new microcredit, increase the new microcredit budget and then, create new multi-forms of the new micro-credit poverty alleviation, applies different policy measures in different areas according to different poverty situation. Last but not least,promote the income of poor families through the combination of the new micro-credit poverty alleviation with other policies, such as assigning technical experts to rural area, providing production technology training to farmers and so on.