Research On Poverty Reduction Effect Of Financial Development In Minority Areas

With the promotion and implementation of various poverty alleviation initiatives,China's poverty alleviation work has made remarkable achievements since the implementation of the reform and opening up policy.The number of rural poor in China has dropped from 250 million in 1978 to 30.46 million in 2017,and the incidence of poverty has dropped from 30.7% to 3.1%.China's ethnic areas have also achieved remarkable results in poverty alleviation.However,due to the harsh regional environment,weak economic foundation etc.,the rate of returning to poverty is high.China is at a critical moment in poverty alleviation.As the main battlefield,poverty alleviation in ethnic areas plays a vital role in whether China can achieve the goal of comprehensively eliminating regional poverty and building a well-off society by the end of 2020.The causes of poverty in ethnic areas are complex and their performances are relatively special.The work of poverty alleviation will become more and more complex and challenging.As a distribution center for social resources,financial development has long played an important role in promoting poverty alleviation.In recent years,a series of documents issued by various departments,such as the “Implementation Opinions on Financial Assistance for Poverty Alleviation” and “Opinions on Financial Support for Poverty Alleviation in Deep Poverty Areas”,have clearly put forward the specifics of financial support for poverty alleviation in poverty-stricken areas.Program.By 2017,more than 600,000 poor people have received loans,and the loan balance for the establishment of poor card-holders has reached more than 280 billion yuan;practice has proved that financial development is one of the effective ways to alleviate poverty.Compared with other regions in China,ethnic minority areas have more low-income populations,are more severely financially excluded,and have different initial income status and education levels.Therefore,a correct understanding of the relationship between financial development and poverty alleviation in ethnic areas,combined with relevant theories to explain its poverty alleviation mechanism,study the poverty reduction effect of financial development in ethnic areas,can deepen the financial reduction of regional economic and financial development for ethnic areas.The poverty model provides a new basis for decision-making;on the other hand,it also enriches the research results related to financial development and poverty reduction.The content of this paper is arranged as follows: Chapter 1 is an introduction,which mainly introduces the research background,research significance,definition of related concepts,research content,possible innovations,and deficiencies.Chapter 2 is a literature review,which mainly reviews the literature on economic growth and poverty alleviation,financial development,economic growth,income distribution and poverty,and clarifies the main influences and factors of previous scholars on the poverty reduction effect of financial development.Chapter 3 mainly analyzes the two channels(direct and indirect)of financial development acting on poverty.Chapter 4 is the poverty situation and poverty reduction effect analysis in ethnic areas.Based on the FGT poverty measurement index,the poverty situation is analyzed according to the income group data,and then the poverty reduction effect of ethnic areas since the 12 th Five-Year Plan has been summarized.Chapter 5 is the analysis of the status quo of financial development in ethnic areas,including the financial banking situation,stock market,and insurance market.The development index of inclusive financial development in ethnic areas was constructed to measure the level of development of inclusiveness in ethnic areas.Then,the development of green finance for sustainable development was analyzed.Chapter 6 mainly measures mediating effects and direct effects.Chapter 7 briefly summarizes the practice of inclusive finance in ethnic areas,and uses panel data to analyze the effect of inclusive financial poverty reduction.Chapter 8 is the conclusion and countermeasures suggestions,and also analyzes the shortcomings of this paper and the prospects of later research.The main conclusions of this paper are as follows:Firstly,financial development can act on poverty through two channels.Financial development can directly help the poor to overcome credit constraints,have more opportunities to receive education and investment,increase their income levels,and improve the ability of the poor to withstand risks,thus changing the poverty status of the poor.In terms of indirect effects,financial development can increase the savings rate,promote the increase of the rate of savings conversion,and increase the marginal output rate of capital,which will enable the development of social economic growth and affect poverty.Financial development can also affect the initial state of income distribution and the rate of change that ultimately affects poverty.Secondly,the FGT index measurement results vary between regions.Using the current rural poverty standard in China,the annual per capita net income is 2,300 yuan(constant price in 2010),the World Bank averages 1.9 US dollars per person per day(converted to 3,757 yuan per year),two absolute poverty lines and 50% per capita net income as relative poverty.The FGT index of the line found that the overall poverty level in Inner Mongolia is small,followed by Guangxi,Xinjiang,and Qinghai.The poverty trends in different years are different in each region.In addition,the two absolute poverty lines have shown a gradual decline in the measurement indicators of poverty in all regions.Among them,the decline rate of poverty rate is faster than the poverty distance and the square poverty distance.Thirdly,the level of financial development in ethnic areas needs to be improved.On the one hand,the overall level of financial development represented by the financial correlation rate shows that there is still a certain gap between the development level of each country and the national level.On the other hand,comprehensively calculate the inclusive financial development index of the ethnic regions from the three dimensions of financial service penetration,product contact dimension and utility,and use the coefficient of variation method to determine the contribution rate of each indicator to the development of inclusive finance.The penetration of geographical dimension has a greater weight and basically maintained at around 0.200.The sub-dimension of “the permeability of geography dimension” is at the present stage in the development of inclusive finance in China,playing a leading role.The inclusive financial development index is 0.37,the inclusive financial development index in Ningxia is around 0.7;Yunnan and Guizhou are at a general level,basically maintained at 0.4 or so;Inner Mongolia,Guangxi,Xinjiang is about 0.3;Qinghai is about 0.2,while Tibet is the lowest,only 0.093.Fourthly,there are differences in the pros and cons of economic growth in ethnic areas.The results of PPGI and PEGR calculations in various regions show that Yunnan Province was a pro-poor growth and Xinjiang was a trickle-down development.Guangxi and Guizhou are different.In general,economic growth in several regions has greatly promoted poverty alleviation.Fifthly,the mediating effect of financial development on poverty alleviation through income distribution is 55.23%,and the direct effect is 44.77%.When considering the two median variables of economic growth and income distribution,the direct effect of financial development on poverty alleviation is greater than the mediation effect,and the ratio of direct effect to mediating effect is about 1.3.The mediation effect of financial development through economic growth affecting poverty alleviation is not obvious.Therefore,we should pay attention to how to avoid various unfavorable factors,find the optimal financial structure that best matches the local economic development.Sixthly,the development of inclusive finance in ethnic areas has a significant effect on poverty reduction.In general,the inclusive financial poverty reduction FEP is equal to 0.0398,which is between 0 and 1,indicating that the development of inclusive finance in ethnic areas has a certain poverty alleviation effect.The four indicators of banking financial institutions,per capita loan balance,loan rate and insurance depth per 10,000 square kilometers are significant at different levels,indicating that the geographical penetration of financial institutions,loan use and insurance penetration are important for reducing poverty.There is no significant relationship between population dimension penetration,per capita deposit and savings rate and poverty alleviation.