An Empirical Study On Alleviating Household Relative Poverty In The Development Of Inclusive Finance

At present,China’s poverty alleviation battle has achieved a historic victory,and the next step will be to establish a long-term mechanism to solve the problem of relative poverty.With the continuous improvement of the service system and service quality of inclusive finance,inclusive finance will become a powerful starting point for alleviating the problem of relative poverty.Systematic study of the effect of inclusive finance in alleviating relative poverty is of great practical significance for establishing a long-term mechanism for relative poverty governance,promoting the construction of inclusive financial system,and promoting the coordinated development of urban and rural areas.At present,research focuses on the impact of inclusive finance on the incidence of relative poverty,and lacks relevant research on poverty alleviation and poverty prevention,ignoring the dynamic characteristics of poverty problems.In order to comprehensively and intuitively analyze the effect of inclusive finance in alleviating relative poverty among households,this paper uses the data of the China Household Finance Survey in 2015,2017 and 2019 to comprehensively examine the impact of inclusive finance on the incidence of relative poverty among households and poverty alleviation and return to poverty.The results show that,first,the development of inclusive finance can effectively reduce the incidence of relative poverty among urban and rural households.Second,the effect of inclusive finance in reducing the incidence of relative poverty is more pronounced in rural households with low levels of household education,risk appetite and risk aversion.Third,the development of inclusive finance can also promote poverty alleviation among rural and urban households,and also curb households from falling back into poverty.Fourth,the role of inclusive finance in promoting poverty alleviation is more pronounced in rural households with low education level of household heads,risk-neutral and risk-averse households.Fifth,the mechanism test shows that inclusive finance can play a role in alleviating relative poverty through two channels: promoting potential investment and obtaining property income.Based on the above findings and the current situation of relative poverty governance,this paper believes that a differentiated inclusive financial service system should be established in the future,effectively improve the financial capabilities of relatively poor families,enhance their self-development capabilities,and improve the long-term support mechanism of inclusive finance for relatively poor families,so as to effectively exert the poverty reduction and poverty prevention effect of inclusive finance.The main contribution of this paper is to explore the role of inclusive finance in alleviating relative poverty from the perspectives of the incidence of relative household poverty and poverty alleviation and return to poverty,which complements the existing research on relative poverty.In addition,this paper selects the weak relative poverty line to measure relative poverty by urban and rural areas,and takes into account the relative poverty of rural and urban areas,which is of great significance for the formulation and implementation of the relative poverty management strategy in the future.