The Effect Of Capital Flows On Poverty Reduction

Since the reform and opening up,our country has achieved high-speed economic development,people's living standards continue to improve,poverty has been largely alleviate.As the basic factor of economic growth,capital also plays an important role.The existing research has already demonstrated the relationship between capital flows and economic growth,economic growth and poverty mitigation,and how much of the capital flows have contributed to poverty reduction over the years? Based on the capital flow theory and poverty theory,deeply ananlze the correlation between thecapital flows as well as the poor reduction,and thinks that the flow of capital can improve the efficiency of capital use,stimulate economic growth and promote financial development.Channels can achieve their poverty reduction effect.And then use the perpetual inventory method to estimate the size of capital stock in China from 2002 to 2015,and use this as a threshold variable to study the relationship between capital flow and poverty alleviation in China with provincial panel data.The empirical results show that the inflow of capital has a positive effect on poverty alleviation,and the effect of capital inflows is not the same when capital stock is different.In addition,economic growth,the improvement of education level,the government's financial transfer is also associated with poverty alleviation is related to a certain role in poverty reduction.Finally,on the basis of the conclusion of the empirical analysis,we put forward some policy suggestions for poverty reduction in our country.