Evaluation Of Poverty Reduction Effect Of Inclusive Finance Development In Jilin Province

As a developing country with a large population,reducing poverty has always been a very difficult task for China.Since the reform and opening up,China’s economy has achieved tremendous development,and at the same time,the poverty alleviation and development work has also achieved remarkable results.In 2021,China achieved a complete victory in the battle against poverty.All 98.99 million rural residents living below the current poverty line were lifted out of poverty,832 poor counties were lifted,and 128,000 poor villages were listed.Overall regional poverty was eliminated,and the arduous task of eradicating absolute poverty was accomplished.The focus of solving poverty problem in China has gradually shifted from eliminating absolute poverty to improving relative poverty,and from lifting out of poverty to preventing the return to poverty.Jilin Province,located in northeast China,has the characteristics of wide distribution of poor people and high incidence of poverty,and is a key region prone to return to poverty.In recent years,financial development has played an important role in poverty alleviation,and "inclusive finance",as an emerging concept,is considered to be a powerful tool to alleviate poverty among the poor.The development of inclusive finance has improved the availability of financial services for low-income groups,expanded the scope of financial services,and promoted the effective allocation of resources through credit.Therefore,objectively measuring the development level of inclusive finance in Jilin Province,accurately evaluating the poverty reduction effect of inclusive finance development,and actively summarizing the valuable experience of poverty alleviation and development work in Jilin Province have important theoretical value and practical significance for consolidating the great achievements of comprehensive poverty alleviation and preventing poverty return.Firstly,this paper comprehensively reviews relevant domestic and foreign literature,and introduces commonly used measurement methods for the development level of inclusive finance,empirical methods for the evaluation of poverty reduction effect of inclusive finance and relevant theories.Secondly,the paper analyzes the present situation of inclusive finance in Jilin Province from three dimensions:penetration,availability and use of financial services,and summarizes the poverty situation in Jilin Province.Then,from a theoretical perspective,the poverty reduction mechanism of inclusive finance is elaborated.Direct poverty reduction is mainly realized through financial activities between financial institutions and poor people,such as savings,credit and insurance,while indirect poverty reduction is mainly realized through promoting economic growth and income distribution.Panel data of 9cities(or states)in Jilin Province from 2009 to 2019 were selected to measure the development level of inclusive finance in Jilin Province from 10 indicators in three dimensions.It was found that the development index of inclusive finance in Jilin Province showed an overall upward trend,and the gap between the development index of inclusive finance in all cities(or states)gradually narrowed.Through the empirical analysis,it is found that the poverty reduction effect of inclusive finance development in Jilin Province has a positive "U" development pattern of promoting first and then inhibiting,and the mediation effect model shows that the intermediate variable economic growth and income distribution have a mediation effect on poverty alleviation.Through the analysis of GMM estimation results,the poverty alleviation level of the previous period has a positive correlation with the poverty alleviation level of the current period,and the development level of inclusive finance in Jilin Province has a lag in poverty alleviation.Finally,it proposes to intensify the development of digital inclusive finance and establish a new financial service system;Improve the development level of inclusive finance,reduce the regional development differences of inclusive finance;We will increase the support of inclusive finance to primary industry and education,and form a long-term mechanism to prevent poverty from falling back into poverty.