The Effect And Path Of Poverty Alleviation In Rural Inclusive Finance

To win the battle against poverty and lift all rural poor people out of poverty by 2020 is a solemn commitment of the Chinese government.Developing inclusive finance is the main focus of financial poverty alleviation and an effective way to achieve the goal of comprehensive poverty alleviation.As the main settlements of the poor in China,rural areas determine the success or failure of the fight against poverty.This paper studies the effect and path of poverty reduction of rural inclusive finance in order to explore the cause and effect of poverty reduction in rural areas of China.Based on sorting out and reviewing of relevant domestic and foreign literature,this paper first briefly introduces the concept of inclusive finance,its development history,and the definition and measurement of poverty,and expounds the theoretical basis of inclusive finance and poverty.Then,the rural poverty rate was selected to measure the degree of rural poverty,and17 indicators were selected from the five dimensions of financial service penetration,availability,use utility,affordability and sustainability of financial service costs,and use the variation coefficient method and the Euclidean distance method to calculate the rural inclusive financial index of 22 provinces and cities from 2010 to 2018.At the same time,this paper analyzes the direct and indirect paths to alleviate poverty of rural inclusive finance.Based on this,a dynamic panel data model is designed,and a systematic GMM estimation is selected to empirically test the poverty reduction effect and poverty reduction path of rural inclusive finance.There are four main conclusions of this paper: 1.From 2010 to 2018,the incidence of rural poverty in 22 provinces and cities showed a rapid decline,but the rural poverty situation in the western region of China is still severe;2.From 2010 to 2018,the rural financial inclusion index of 22 provinces and cities shows an upward trend,but the level of inclusive financial development reflected by this index is still low.By 2018,only 7 provinces and cities have reached a high level of financial inclusion,while the remaining 15 provinces and cities are at a general level of financial inclusion;3.Rural inclusive financial development has significant effect on poverty reduction;4.Rural inclusive finance alleviates poverty by improving the permeability,availability and utility of financial services,while the affordability and sustainability of financial service costs are not conducive to poverty alleviation.Indirect ways to alleviate poverty include narrowing the urban-rural income gap and promoting economic growth.Based on the research conclusion,the corresponding policy Suggestions are put forward: 1.Make good use of a variety of rural inclusive financial instruments.2.Constantly improve financial infrastructure and improve rural financial services.3.Promote industrial development,narrow the income gap and boost economic growth.