Research On Inclusive Finance On The Alleviation Of Rural Expenditure Poverty In China

Since ancient times,poverty has always been one of the main factors hindering social and economic development.As the most populous country in the world,poverty reduction and elimination have always been the priority of Chinese government.Under the background of the new era,China's economically underdeveloped areas,especially the rural areas,expenditure poverty problems have gradually become more and more prominent such as poverty caused by illness or by education.In 2018,42 percent of registered households in China were “Poverty and Re-poverty Caused by Disease.Expenditure poverty generally exists in rural areas of China,but due to its strong concealment and difficulty in measurement,the current research on rural poverty is mainly focused on income poverty,and the emphasis and research on expenditure poverty need to be strengthened.China has always taken rural areas as the focus of poverty alleviation,and finance is one of the main means to alleviate rural poverty.However,due to the existence of financial exclusion,rural residents are restricted by financial constraints for a long time and cannot enjoy the benefits of financial resources.The proposal of financial inclusion in 2005 can effectively solve the problem of financial exclusion.By developing inclusive finance,rural residents can alleviate their poverty by obtaining financial resources and reduce the possibility of returning to poverty.At present,most scholars focus on the effects of inclusive finance on rural income poverty,but there is still a lack of research on whether inclusive finance can alleviate rural expenditure poverty.Therefore,from the perspective of inclusive finance,this paper focuses on the study of the impact of inclusive finance on rural expenditure poverty.On the one hand,it can provide a basis for the measurement and evaluation of rural expenditure poverty and the development of inclusive finance in China.It can also provide a reference for relevant departments to further study expenditure poverty.On the other hand,it can also expand the research content of inclusive finance and poverty,and enrich the related research results,which has important theoretical value and practical significance.Based on the characteristic facts of inclusive finance development and rural expenditure poverty in China,this paper analyzes and demonstrates the mechanism and effect of inclusive finance development on rural expenditure poverty from the theoretical and empirical perspectives.The key points include the following: 1.Combing the concepts and related theories of inclusive finance and expenditure poverty,and integrating them into a unified research framework.2.Theoretically analyze the direct and indirect mechanism of inclusive finance on rural expenditure poverty,and reveal the function path of inclusive finance on rural expenditure poverty.3.Use relevant models to measure and analyze the level of financial inclusion and rural expenditure poverty in Chinese provinces.4.By using the frontier econometric model,this paper makes a comprehensive empirical analysis of the effect of inclusive finance on rural expenditure poverty alleviation and its characteristics.Based on the above research,the main conclusions of this paper are as follows:1.The development level of inclusive finance in China is on the rise year by year,and the regional development of inclusive finance is unbalanced.2.Rural expenditure poverty in China fluctuates and increases year by year,and shows a pattern of high in the west and low in the east.3.Inclusive finance can directly alleviate rural expenditure poverty,in which permeability and affordability have a significant effect on poverty reduction,while the Utility effect is not obvious.There are regional differences in the direct alleviation effect of inclusive finance on rural expenditure poverty.4.Income growth,medical equalization and labor transfer have indirect transmission effects in the process of financial inclusion alleviating rural expenditure poverty.Financial inclusion can alleviate rural expenditure poverty by increasing household income,reducing rural medical poverty and reducing labor transfer.5.For groups with different poverty levels,the impact of inclusive finance on rural expenditure poverty is heterogeneous.For the group with higher degree of expenditure poverty,the poverty reduction effect of inclusive finance and its affordability is more obvious,while the permeability and utility of inclusive finance is better for the group with lower level of expenditure poverty.6.At different levels of economic development,the moderating effect of inclusive finance on rural expenditure poverty is also different.The moderating effect of inclusive finance on rural expenditure poverty will gradually weaken with the improvement of economic development level.This kind of heterogeneity also exists in the sub-dimension ofinclusive finance.7.The effect of inclusive finance on the alleviation of rural expenditure poverty has obvious characteristics of spatial spillover.The improvement of the development level of inclusive finance can not only alleviate the local rural expenditure poverty,but also significantly reduce the rural expenditure poverty in neighboring areas,and there are still regional differences in the spatial spillover benefits.Compared with existing researches,the main innovation of this paper is as follows:1.Most of the existing researches focus on income poverty,while there are few researches on expenditure poverty.Combining with the reality of China,this paper uses the expandable linear expenditure model to measure the poverty level of rural expenditure based on the family living expenses,which has scientific and practical significance.2.As one of the main approaches to poverty reduction,inclusive finance plays an important role in the alleviation of rural poverty.The existing researches mainly focus on the impact of inclusive finance on income poverty.In view of this,this paper demonstrates the moderating effect of inclusive finance on rural expenditure poverty from both theoretical and empirical perspectives,and enriches the research content of inclusive finance on poverty reduction.3.This paper constructs the transmission path of the influence of inclusive finance on rural expenditure poverty.and use the Dynamic Panel Model,Mediating Effect Model,Instrumental Variable Quantile Model,Panel Smooth Transition Model and Spatial Econometric Model,empirically analyzes the mechanism and effect of inclusive finance on rural expenditure poverty,and forms a comprehensive and systematic research system.