Research On The Validity Of Financial To Alleviate Poverty And Its Influencing Factors

For a long time,rural finance development and poverty alleviation has been a hot topic for the theoretical and policy.Since the reform and opening of China,rural financial development has made considerable progress,from the single finance system to the diversified finance system which including policy finance,commercial finance,cooperative finance and the new financial and so on.In particular,micro-credit and micro-finance which have been hot discussed are the key contents of rural poverty alleviation.At the same time,our country's rural poverty alleviation has also made outstanding achievements.However,because of the economic characteristics of poor farmers,the natural endowments rural areas and pro-poor financial systems,institutional and other factors,the supply of micro-credit to poverty does not match the needs of poor farmers in structure and amount.In addition,the credit-target gradually moving higher,higher lending rates and trouble approval procedures resulting in the low-availability and significantly reducing the validity of financial to alleviate poverty.According to the new poverty standard in 2011,the number of rural poor recovery to more than 150 million,appearing serious "backing poverty" phenomenon.Based on the practical background,by using 1503 effective samples of 16 provinces' national poor counties,this paper research the validity of financial to alleviate poverty and its influencing factors from both theoretical and empirical.First,Learning from the previous theories to constructing the theoretical analysis framework by using logical analysis method,including some related concepts the objectives,conditions of financial to alleviate poverty,defined the meaning and measurement about validity of financial to alleviate poverty,analysis mechanism of different modes.Secondly,analysis the poor condition,economic characteristics,financing behavior of sample areas by using descriptive statistical method,which helping us preliminary understanding the current situation of rural financial to poverty alleviation.Again,viewing the first four theoretical analysis chapters,the fifth and sixth chapters making an empirical studying on the available of micro-credit funds to poor farmers and its influencing factors of 1503 valid samples by using the probit model;Furthermore,focusing on the validity of financial to alleviate poverty and its influencing factors of the 810 samples who have getting the poverty-credit funds by using the same method.At the same time,making an comparative analysis between formal financial and non-formal financial.The conclusions of this paper including:(1)The theoretical studies showing that:Poverty is a dynamic and multidimensional information,which is an important basis to establish a scientific and rational poverty reduction target system.The validity playing relays on the poverty-alleviation credit institutions,poverty-alleviation credit funds,poverty-alleviation projects and poor farmers,which are the main line of the poverty-alleviation credit system,but can't without external system and policy environment supporting,such as credit risk-sharing mechanism,policy-aid discount system,fully competitive market environment and effective external supervision system.The validity of financial to alleviate poverty is to improve the welfare of poor farmers,and taking into account the financial sustainability of poverty reduction credit institution,so reasonably priced poverty reduction rate is an important part of achieving the goal;(2)Improving the validity of financial to alleviate poverty is constrained by both internal and external factors.such as economic characteristics of poor households,poor natural conditions and social environment,the poor arrangement of financial system,which resulting in a serious mismatch of financial supply-demand.(3)The empirical research on the availability of poverty reduction credit funds shows that:Majority of poor farmers have demanding for credit,but due to many influencing factors the overall availability of poverty alleviation credit funds is low,and compared with the formal financial institutions,the non-formal financial institutions are more availability due to its advantage in access to information.Among them,the availability of non-formal financial institutions which more inclined to "relationship lending",mostly relays on society resources and influencing of family in the area.Spatial distance also further strengthens the rural financial exclusion and inhibits availability of credit funds to poor farmers.Improving education level of family headed modest family size,remaining steady growth household income,innovating the mortgage products are beneficial to poor farmers to improve the availability of poverty alleviation credit funds;(4)The empirical research on the validity of poverty reduction credit funds shows that:Financial means is an effective way to achieve poverty alleviation goal in rural areas,whether formal or informal financial institutions have played a poverty reduction effect.However,the overall validity is low,and the informal financial effectiveness of poverty reduction is slightly higher than the formal financial.Meanwhile,the validity is affected by number of factors,including the head of household education level,net income of poor household have a significant positive effect on the overall,while financial institutions spatial distance significantly inhibits the validity of financial to poverty reduction.The scale of credit funds has a positive effect on validity of formal financial to poverty alleviation.The positive effect of labor quantity,social relations,purpose of loaning and the activities of agricultural production on the validity is not significant.The effect from healthy of families members has an oppositive direction with the theoretical assumptions,family size is not conducive to improving the validity,this may be related to the population structure of poor families,majority of the families' structure are in stage of "both the little and the old",families' burden is heavier and less health.Based on the researching conclusions,the Policy suggestion of this paper including:(1)Making dynamic and multidimensional criteria to identify poverty,which is helpful to aiming to the poverty objects accurately.(2)Building a diversified rural poverty reduction credit organization system,forming a fully competitive rural financial market situation.(3)Accelerating rural poverty alleviation credit product and service innovation,to effectively meet the financing needs of poor farmers.(4)Establishing a sound risk sharing and guaranteeing mechanism for rural poverty reduction,improving the initiation of financial institutions involved in poverty alleviation.(5)Improving the legal system of poverty credit,ruling the effective operation of the formal and non-formal financial institutions.Making the "Micro-credit" and other laws to stop wrongdoings of financial institutions and borrowers.(6)Strengthening the guiding role of fiscal in financial poverty reduction,full playing the synergy of fiscal and financial to alleviate poverty.(7)Optimizing the quality of rural economic and financial environment,creating favorable conditions for obtaining credit funds and improving the validity.The innovation of this paper including:(1)The most existing literature use macro date to make empirical research,this paper makes a probit model by using a large sample of 1503 survey data,the results can better reflect the reality of China's financial to alleviate poverty;(2)In the theoretical analysis,abandoning the traditional concepts of "only the income",forming a dynamic multidimensional poverty reduction target system and reasonable definition of the validity of financial to alleviate poverty.Rationalizing the conditions of financial to alleviate poverty systems and the different modes's advantages and disadvantages;(3)There is litter direct studying on the influencing factors for validity of financial to alleviate poverty.firstly this paper making a theoretical assumption,then using micro data making an empirical study on availability and validity factors for poverty reduction,and making a comparative analysis between the formal and non-formal financial.