Health Shocks,Availability Of Credit And The Vulnerability Of Farmers To Poverty

With the successful completion of the task of poverty alleviation,people gradually shift their attention to how to consolidate the achievements of poverty alleviation and block the path back to poverty.Poverty vulnerability can reflect the ability of farmers to deal with risks and predict the future poverty status of farmers.Therefore,reducing the poverty vulnerability of farmers can effectively maintain the achievements of poverty alleviation and reduce the possibility of returning to poverty.Health shock is one of the most important and common risks faced by farmers.By affecting income sources and increasing medical expenditure,health shock causes farmers to suffer from welfare loss and even fall into poverty.When faced with health shock,farmers do not just passively bear the risk,but explore various ways to resist the risk.Access to credit is an important way of risk management for farmers.Existing studies have found that farmers’ access to credit,on the one hand,can ease liquidity constraints and smooth current consumption;On the other hand,it helps them maintain or expand the scale of production,improve their ability to obtain income,improve the level of welfare and avoid falling into poverty.Based on the realistic background,this paper take farmers as the research object,discusses the influence of the health impact of poverty vulnerability,key inspection when faced with a health impact,vulnerability of poverty of rural households in China through credit availability eased,to provide against the health impact of effective strategies for farmers,to reduce the probability of poverty due to illness,to provide theoretical thinking.The main contents of this paper include: first,review the relevant theories at home and abroad,define the concepts of health shock,credit availability and poverty vulnerability,and review the literature related to health shock,credit availability and poverty vulnerability;Second,using CFPS(2014,2016,2018)data,establish Probit model for empirical research.To study the impact of health shocks on poverty vulnerability of rural households,focusing on examining the role of credit availability in the impact of health shocks on poverty vulnerability.Thirdly,based on the empirical results,the research conclusions of this paper are drawn,the relevant feasible measures are discussed,and then reasonable policy opinions are put forward.The main research conclusions of this paper are as follows: First,health shock can significantly increase the probability of poverty vulnerability of farmers;Second,the availability of credit significantly reduces the probability of poverty vulnerability in the event of health shocks.Formal credit and informal credit are effective means for farmers to cope with health risks.Third,if the head of a household suffers from chronic disease,informal credit cannot reduce the probability of poverty vulnerability caused by health shocks,but formal credit can weaken the impact of health shocks on the poverty vulnerability of households.When the head of a household is not chronically ill,both formal and informal credit significantly reduce the probability of vulnerability to poverty in the event of a health shock.Finally,the following policy recommendations are drawn based on the research conclusions of this paper.First,the government should vigorously promote the strategy of Healthy China,improve the construction of medical infrastructure in poor areas,and ensure that every family can enjoy the most basic medical services;Second,the government should continue to improve the rural financial service system,at the same time,promote the continuous innovation of various financial institutions,to develop financial products in line with the credit needs of farmers.Third,the government should vigorously promote the development of informal credit to the direction of compliance and legalization.With the help of financial means,we should actively promote the transformation of informal credit to formal credit,and provide strong institutional safeguard measures for the regularization of informal credit.