Research On The Effect Of Digital Inclusive Finance On Poverty Reduction In Lankao County

The General Secretary’s speech at the National Poverty Alleviation Summary and Commendation Conference in 2021 pointed out that all rural poor people have been lifted out of poverty.However,three years after the COVID-19 epidemic,poverty is still caused by diseases and accidents.In order to further consolidate the achievements of poverty alleviation and effectively link poverty alleviation with rural revitalization,it is necessary to continue to explore ways to alleviate poverty and lay a solid material foundation for rural revitalization.Financial exclusion is widespread in the traditional financial model,which makes it difficult for poor groups to obtain financial services.In order to eliminate the problem of financial exclusion,Lankao County,a representative county approved by The State Council,became the country’s first inclusive financial reform pilot zone,cutting into the difficulties and pain points in financial development,such as difficult loans for farmers,lack of financial services,risk prevention and control is not in place.Through continuous analysis and in-depth research,coupled with the rapid development of Internet-based digital technology in recent years,it will be of great benefit to solve the problems of uneven coverage of inclusive finance and uncoordinated supply and demand of financial services.Based on the theory of financial constraint,the theory of imperfect market competition,the vicious circle of poverty theory and the anti-poverty theory of balanced growth,this paper constructs a theoretical research framework,and uses empirical research method to test the digital inclusive finance development index and the panel data of 17 prefecture-level cities in Henan Province from 2014 to 2020.The results show that digital inclusive finance has a positive effect on poverty alleviation.Secondly,case study is used to study Lankao County.Firstly,the reasons for choosing Lankao County as the research object are introduced,and it is pointed out that Lankao County is in urgent need of poverty alleviation.Secondly,it reviews the four stages of the development of digital inclusive finance in Lankao County.In the stage of microfinance,financial institutions carry out the credit system reform,and the basic concept of inclusive finance is preliminarily embodied.In the comprehensive inclusive benefit stage,enterprises and insurance companies have given full play to the hematopoietic poverty alleviation ability,and the inclusive benefit effect is obvious.In 2016,it was established as a pilot zone for reform and entered the stage of innovative inclusive benefits.The development mode of "one platform and four systems" was developed,and financial services were rapidly covered.Then,relying on the mode of "one platform and four systems",by giving full play to the advantages of digital inclusive finance in poverty reduction,including inclusion,precision,financial accessibility and affordability,poor groups have the opportunity,low cost and more convenient access to financial services,so as to obtain production funds to carry out production activities and earn income.Finally,the entropy method is used to evaluate the poverty reduction achievements of Lankao County.Horizontally,compared with other 30 poor counties in Henan Province,the poverty reduction achievements of Lankao County are the most obvious.Vertically,Lankao County has been out of absolute poverty for several years after the implementation of digital inclusive finance,but relative poverty still exists,and the "one platform and four systems" mode still has some deficiencies.This paper puts forward several suggestions from the perspective of the government and financial institutions.After research,this paper mainly draws the following two conclusions:(1)Digital financial inclusion plays a positive role in promoting poverty reduction,which can promote poverty reduction through credit services,savings services,insurance services and other direct ways.(2)The poverty reduction effect of digital inclusive finance on Lankao County is essentially that the effective use of advanced Internet technologies such as big data and the Internet of Things can effectively make up for the shortcomings of inclusive finance,such as high entry threshold,low accessibility and few sinking services,and penetrate inclusive finance into poor groups,so that poor groups have the opportunity and ability to obtain financial services,so as to obtain production funds and improve their income.To achieve the goal of poverty alleviation.