The Effects Of Credit Support And Capital Flows On Poverty Reduction

Poverty is a universal social phenomenon in the history of mankind.It is a cancer that devours the body of human society.It is also a worldwide problem concerning human survival and development.As the largest developing country in the world,the poverty problem has been seriously affecting and restricting the development of China's economy and society for a long time.In a sense,the history of China's economic and social development is a history of struggle against poverty.Since the reform and opening up 40 years ago,China's economy has achieved rapid development,and its comprehensive national strength has continuously increased.It has become the world's second largest economy.People's living standards have gradually improved,and the incidence of poverty and poverty has been declining.According to data released by the National Bureau of Statistics.It shows that in 1978,the rural poverty population was 770 million,and the poverty rate was 96.7%.By 2018,the country's rural poverty population was 16.6 million(according to China's rural poverty standard,which is 2,300 yuan per person per year),and the poverty rate was 1.7%.More than 700 million people have been lifted out of poverty.Although China's task of poverty alleviation has been overfulfilled in 2018,it has achieved a staged victory.However,due to the differences in natural resources,geographical location,system and policy between China's regions,China's economic development is unbalanced and the economy is uncoordinated.The development gap has become more and more obvious.The vast number of poor people in the central and western regions still have a wide distribution and the poverty situation is still grim.With the continuous advancement of poverty alleviation and poverty alleviation,the poverty level of poverty-stricken people who have not yet been lifted out has deepened,and the difficulty of poverty alleviation and development has become more and more serious,which has seriously hindered China's grand goal of building a well-off society in an allround way and realizing the great Chinese rejuvenation of the Chinese dream..Therefore,the issue of poverty remains a serious challenge and a major problem that continues to be solved in China now and in the future.Based on the theory of credit support,capital flow and poverty,this paper introduces the method of measuring the level of integration of international capital markets(FH test)proposed by Feldstein and Horioka for 31 regions and three provinces in China from 2008 to 2017.The large area has carried out capital liquidity test,which shows that in the past 10 years,the central and western regions have strong capital mobility due to state financial intervention,while the capital mobility in the eastern region has been separated from the capital markets of the central and western provinces due to the continuous inflow of long-term FDI.And become less active.Then,according to the expenditure amount of the expenditure method,the amount of investment in the province is divided into the capital outflow and the capital inflow,and the poverty reduction effect of the capital outflow and the capital inflow is demonstrated by panel regression.The results show that credit support and net capital inflow have a significant effect on the poverty reduction effect in capital inflow areas.The net capital outflow in capital outflow areas leads to a decrease in capital stock,which worsens the poverty reduction effect,while credit support makes loans due to capital flows.The increase has not been translated into deposits,but has flowed out through various channels,thus inhibiting the positive effects on poverty reduction.Finally,on the basis of the analysis of the empirical results,a number of policy recommendations are proposed for the poverty alleviation in poverty-stricken areas.