The Empirical Study On The Rural Poverty Reduction Effect Of Rural Financial Development In China

Finance is the blood of economy and plays an important role in the economic development.Poverty alleviation is a major event that the Chinese government has been committed to,and good results have been achieved since the reform and opening up.The development of rural finance promotes rural economic growth and improves urban and rural income distribution to help reduce rural poverty.What is the effect and what is worth improving? This is the starting point of the paper.Firstly,the paper introduces the background and significance of the topic,the definition of core concepts,the research content and research framework,as well as possible innovations.Then,with the help of mathematical methods and economic theories,the logical deduction of the mechanism of rural financial development on poverty alleviation in rural areas is completed.Secondly,it analyses the problems of the demand and supply in the process of rural financial development in China,and studies the diversified manifestations and causes of rural poverty in China.Finally,based on the provincial panel data of 26 provinces in China from 2000 to 2016,the panel threshold model is used to empirically test the possible non-linear impact of rural financial development on the rural poverty alleviation.Based on the above research,the paper puts forward the following countermeasures and suggestions: First,speed up the rural financial legislation to legalize the rural financial market.Second,deepen rural reform in an all-round way,release and cultivate rural financial market demand.Third,the focus on rural poverty is shifted from single economic poverty to multi-dimensional poverty.Fourth,we should pay attention to the rational transformation of savings and investment rate to maximize the rural poverty reduction effect of rural financial development.The main conclusions of this paper are as follows:(1)There is significantly single threshold effect of rural financial development on the rural economic poverty,educational poverty and medical poverty respectively.(2)Rural financial developmentalways promotes economic poverty,but the promotion effect gradually weakens with the improvement of rural financial development level.This shows that rural financial development has not played its due role in alleviating economic poverty,but has exacerbated the degree of economic poverty.However,with the further improvement of rural financial development,the degree of economic poverty will be weakened.(3)Rural financial development plays a role of "restraining educational poverty first and then rising".Before the threshold value,rural financial development has played its due role in alleviating educational poverty.However,with the further development of rural finance,it has exacerbated educational poverty.(4)Rural financial development always promotes medical poverty,but the promotion effect gradually weakens with the improvement of rural financial development level.This shows that rural financial development has played its due role in alleviating the degree of medical poverty,but with the further development of rural finance,its alleviating effect on the degree of medical poverty will be weakened.(5)Combining with practice,the development of rural finance in China has aggravated the poverty of rural economy,but effectively alleviated the poverty of rural education and medical treatment.