Research On The Poverty Reduction Effect Of Rural Financial Development In China

In recent years,China has been building a well-off society in an all-round way as a goal.In order to achieve this goal,the government has repeatedly reformed the rural financial system and considered the development of rural finance as an important aspect of poverty reduction in rural areas.China’s poverty reduction strategy has undergone a major transformation in recent years,from Participatory Poverty eradication in the past to diversified and active poverty reduction.Reform of the poverty reduction strategy needs to be accompanied by reform of rural financial services.However,owing to factors such as the low level of economic development and the inadequacy of security mechanisms,it is often unrealistic to rely solely on finance for Poverty Reduction Therefore,we must be aware of the use of finance in poverty alleviation,the nature of finance and the relationship between finance and poverty alleviation,and further to find a sustainable path of financial poverty alleviation,thus promoting the social and economic development of poor areas,to increase farmers’ income and provide important reference for the formulation of relevant policies will ultimately speed up rural financial reform and promote the implementation of poverty alleviation programs.Based on financial development and poverty alleviation,this paper studies poverty alleviation from the perspective of financial development innovatively,which helps to increase the funds for poverty alleviation,improve the situation of poor households,and inject vitality into the development of poor areas.On this basis,this paper sorts out the basic information of domestic and foreign scholars on the relationship between financial development and poverty alleviation,and specifically analyzes the direct and indirect effects of Financial Development on Poverty Alleviation The direct impact is mainly reflected at the micro level,mainly targeting the poor groups,involving credit services and savings services,to a large extent increasing the access of the poor groups to finance and better respond to the crisis.The indirect impact is mainly reflected in the macro level,divided into two channels,namely through economic growth and income distribution to alleviate poverty,throughthe continuous summary of research results,We find that narrowing the income gap and improving the level of economic development will lead to a significant improvement in the living standards of the poor,which will be helpful to the formulation and implementation of domestic financial pro-poor policies.This paper introduces the current situation of China’s rural financial development and poverty alleviation in detail on the premise of sorting out the data of poverty alleviation statistical reports and yearbooks,and establishes the panel threshold model using panel data of 29 provinces(cities)in China from 2010 to 2016 This paper examines the ways in which financial development contributes to poverty alleviation.The empirical results show that the relationship between financial development and poverty alleviation is nonlinear,and the threshold effect is significant.The level of financial development is expressed in terms of the scale of financial development and the efficiency of financial development,and it is concluded that the scale of financial development contributes more significantly to poverty alleviation after crossing the threshold However,the effect of financial development efficiency on poverty alleviation after crossing the threshold is not very great.Moreover,for the three control variables,the increase of urban and rural income level(CDR)is not conducive to poverty alleviation The improvement of education level of rural labor force(Edu)and the improvement of Rural Medical Level(Med)can significantly alleviate poverty.Therefore,to expand the scope of financial services,increase the effective supply of financial services to rural areas and provide different and differentiated services to poor areas,and to introduce resources into rural areas and improve their efficiency in resource allocation,we should lay a solid foundation for rural economic development and poverty alleviation,establish a long-term financial mechanism for poverty alleviation,and realize sustainable economic development in poor areas.