The Research On Poverty Reduction Effect Of Rural Financial Development In China

Poverty is a widespread social problem around the world, which is particularly prominent in developing countries. China, the largest developing country in the world, since the reform and opening up,continued to maintain more than the average annual economic growth rate of 9% for 30 years, creating a "China miracle",but the problem of poverty has not been eliminated completely. Es pecially the rural poverty, which has become a prominent obstacle to China’s economic development and social progress. The Chinese government has always been committed to the anti-poverty career in rural area, and look upon the rural finance as the main fo rce and the basic policy tools for alleviating rural poverty. In order to promote the better support for poverty alleviation of rural finance, the government has conducted a number of measures to promote rural financial reform and adjustment, since the 21 st century, Government based on the rural financial system reform of the new ideas to "reform the stock, development of incremental". The government introduced a series of the rural financial "New Deal", striving to achieve the positive interaction of the rural financial development and rural poverty reduction. Therefore, further study of China’s rural poverty reduction effect and characteristics of financial development, on the one hand, not only to provide the reality basis to detect, evaluate the effect of the policy of China’s rural financial reform. And dig the inner motive power of the further transformation of the rural financial poverty alleviation mechanism. Expecting to provide a more scientific theory basis and decision-making reference for China’s rural financial system reform. On the other hand, also help expand research theory of financial development and poverty alleviation, and abundant research results.This paper combine the theory of multidimensional poverty and the rural financial development, Based on the interpretation of status and problems of Chinese rural financial development, and Status, problem and its causes of rural multidimensional poverty, this paper systematically analyzes the mechanism of multidimensional poverty reduction of rural financial development in China from the perspective of theory.And with the help of the econometric model,this paper analyzes the effects and features of China’s rural financial on multidimensional poverty in rural areas. Specific performance in the following six aspects:The first, on the basis of describing the background and significance in the paper, defining the relevant concepts, proposed research ideas and research methods,and summarizing research on domestic and foreign financial development and poverty alleviation in rural areas. Combined with the typical facts that China’s financial development and poverty alleviation and the relevant theory of the rural finance development, poverty and poverty alleviation. Build the theoretical framework that the rural financial development for the rural poverty reduction. This paper were systematically interpretation, by an indirect mechanism that the rural finance through economic growth, income distribution acting on rural poverty reduction,and by an direct mechanism that financial services acting on poverty reduction, and the conduction path of the mechanisms acting on poverty reduction is discussed.The second, on the basis of the interpretation of China’s rural financial system formation and development logic, from the perspective of demand and supply,analyzes the present situation and existing problems of China’s rural financial development. And the use of parameters model to analyze the convergence of rural financial development. The study found that along with the implementation of the rural financial reform, the level of China’s rural financial development has been significantly improved, and the financial service breadth and depth significantly expands, There is still a strong credit constraints i n rural areas,and there are "mismatch" between financial supply and financial demand structure at different degree. Meanwhile, there are significant differences in the regional rural financial development level and development trends.The third, the analysis of the current situation and causes of China’s rural multidimensional poverty, and use the FGT poverty index and MPI multidimensional poverty index to measure the current poverty situation in rural area. On this basis, to build the evaluation index system of China’s rural poverty from the economic, social, ecological environmental.And by using the entropy weight composite index to measure and evaluate China’s multidimensional poverty from 2001-2011 in China. Based on the research of FGT poverty index and panel data shows that the overall showed a trend of gradually ease of at China’s rural poverty breadth, depth, strength, but there is a significant regional difference. Based on MPI multidimensional poverty index and cross section data showed that there ar e seven poverty dimensions in rural China at the same time, the sanitation facilities, health care, education poverty is most severe in them. And each dimension of poverty also showed significant regional differences. Based on the new build rural multidimensional poverty evaluation index, the entropy weight composite index, and the panel data,the research shows that there is three dimensions of poverty, economic, social, ecological environment in rural area. And the degree of all dimensions poverty showed a trend of decline gradually on the whole. There is a domination of the economic poverty impact on the overall poverty, followed is the social, environmental and ecological poverty. From the perspective of the regional distribution of poverty, the level of overall poverty and all dimensions poverty in rural areas, the eastern below middle, the middle below western, and there is a huge difference in the level of all dimensions poverty in rural areas. The economic and social dimension is significantly larger than environmental and ecological dimensions among the regional differences.The fourth, under the comparison analysis framework, with the aid of state space model and the mediation effect testing method, empirical analysis the direct effect and mediating effect of rural financial development impact on rural poverty in China.(1)The research results show that the overall effect of rural financial development on China’s rural poverty alleviation is significant, and generally showing a dynamic change trend of rising after the first drop.(2) There are the direct effect and the mediation effect in the process of China’s rural financial development to promote rural poverty reduction, and the two effect present structural features on time. The effect of the financial development promotes the rural poverty reduction in an average of 45.83% of the proportion from the mediating effect of the rural income growth, and with an average of 54.17% from the direct effect of financial services; Among them, the mediating effect accounted for 70.17% from 1986-1992, and the direct effect accounted for 29.83%; The mediating effect accounted for 38.14% from 1993-2010, and the direct effect accounted for 61.86%. The fifth, with the help of PSTR model, identifying the nonlinear rel ationship of rural finance development impact on rural poverty reduction. On this basis, further building the PSTR model to analyze rural financial development for rural poverty. Based on the perspective of longitudinal poverty, empirically analyzing the n onlinear effect of rural formal finance and informal finance impact on poor breadth, depth and intensity. The impact of rural financial development on poverty breadth, poverty depth and poor strength is nonlinear, which shows a distinct threshold character istic.(1)Before and after the threshold level, the effect of the rural informal financial on poverty breadth and poverty depth is from promotion to inhibition, and the inhibition effect is gradually increasing with the development of the rural informal finance; the effect on poor strength is invariably restraining, across the threshold value, the speed of promoting rural poverty decrease is improving but the extent of ascension is not obvious.(2) Before and after the threshold level, the impact of rural formal financial on poverty breadth is invariably restraining, and across the threshold value, the restraining effect is further enhanced; the impact of rural formal financial on poverty depth is mainly inhibition after the threshold level, the effect on the poor strength is not significant whether before or after the threshold level.(3)The influence of the development of Chinese rural formal finance and informal finance impact on poor breadth, depth and intensity is significantly regionally different in rural areas.The sixth, with the help of PSTR model and provincial panel data, based on the perspective of multidimensional transverse poverty, empirically analyzing the nonlinear effect of rural finance development on economic poverty and social poverty. The results show that: there is economic effect and social effect on China’s poverty reduction in rural finance development, only in different development level. The effect of its promotion of rural economic and social impact on poverty alleviation is different.(1)The rural informal financial development can effectively promote the farmers’ income and education levels. And the promoting effect will increase with the improvement of their own development level; In the case of other conditions unchanged, rural informal finance can only promote rural internal distribution of income and the improvement of health care conditions and medical conditions within the range of higher level of their own development. Rural informal financial development effectively improves the rural resid ents’ living conditions, but the improvement effect will fall with its development level rising.(2)Rural formal financial development can effectively promote the farmers’ income growth and improve education levels in their own development level, but no ma tter what kind of development level, it is not conducive to improve the rural internal income distribution gap, rural residents’ living and medical care conditions.(3)The influence of the development of Chinese rural formal finance and informal finance on multidimensional poverty is significantly regionally different in rural areas. The effect of poverty reduction of the rural informal and formal financial development has been highlighted, and there is a lot of room for improvement of the rural poverty reduction effect of rural financial development.