Study On The Effect Of Poverty Alleviation Of Educational Financial Expenditure

Poverty is a global problem and challenge,and poverty alleviation has always been the main policy basis of countries and international organizations.In 2000,the United Nations ranked poverty alleviation as the first of the eight millennium goals(UNDP,1996).However,according to 2015 World Bank statistics,at the international poverty standard of US $ 1.9 per person per day,up to 702 million people are still in poverty status.In China,due to the long time planned and organized poverty alleviation practices,over 700 million people has escaped poverty in past 40 years.China has maked tremendous contributions to the world 's poverty reduction.However,with the deepening of poverty alleviation,there are still a lot of challenges and difficulties in China poverty alleviation,such as poverty reduction is slowing down,relative poverty,multidimensional poverty,and urban poverty are gradually highlighted.As an old topic in human development,the discussion of poverty not only in economic field,but also in many other fields,like philosophy,sociology,anthropology and so on so forth.Poverty has already become a multiple topic which include rights,wealth,fairness.Multidisciplinary research points out that in modern society poverty is not only the lack of income,but the phenomenon of a lack of knowledges and abilities.Therefore,the solution to solve the poverty should not only focus on the economic method,but also use comprehensive means such as society,culture,law,and institution.Aid the poor,first aid the wisdom,and treat poverty first treat foolishness.Education plays a particularly important role in poverty alleviation,since educational products can not only meet the educational needs of individuals,but also meet the educational needs of the society.And the most important fact is that it not only solves personal development problems,but also benefits of the overall society.Compare to the other instruments of poverty alleviation,the biggest advantage of education has two aspects,the first one is block the intergenerational transmission of poverty,and the other one is cut off the source of poverty.On the other hand,improving the education level and human capital status of the poor who has capacity poverty can alleviate poverty effectively.Hence,education products play a major and special important role in poverty alleviation.Meanwhile,due to the strong positive external effects of education,the expenditure responsibility of education has always assumed to public finance.Especially in developing countries,the educational expenditures mainly depend on the government.Therefore,consider to the important role of education in poverty alleviation,we also should pay much attention to education expenditures.Because of the improvement and perfection of the policy system on education expenditure is not only related to the effect of targeted poverty alleviation but also the achievement of the common value goal of the whole society.Hence,the development and improvement of the education poverty reduction policy,could help the solution of poverty problem.UNESCO also pointed out that education is a key way to reduce long-term poverty and a core factor in promoting economic growth and national prosperity.This paper based on education poverty alleviation,adopts a variety of analytical methods,such as normative and empirical analysis,qualitative and quantitative analysis,analyze the effect of education financial expenditure in China.The main contents include: Firstly,based on the past research results,combined the poverty-related theories,illustrate the basis and the mechanism of poverty reduction in education finance expenditures.Secondly,measured and analyzed the current poverty situation in China,inspected the causes and influencing factors of poverty in China,and summed up China's overall anti-poverty policies and education anti-poverty policies.Furthermore,the paper also investigated and analyzed the scale,structure and regional heterogeneity of China's education financial expenditures;Thirdly,through three chapters of empirical analysis,analyzed the poverty reduction effect of education financial expenditures;finally,on the basis of previous chapters,the paper proposed the policy recommendations of how to improve the poverty reduction effect of education financial expenditure.The specific contents of the full paper as follows:The first part is theoretical analysis.First,we examines the dynamic evolution of poverty conception and gives a comprehensive introduction to the types of poverty;secondly,it reviews the relevant theories of poverty alleviation and points out that the theoretical foundation of poverty reduction by human capital;then,explains the necessity of education poverty reduction from human capital theory,basic demand theory,feasible ability theory and poverty culture theory.At last,we analyzed the relationship between education fiscal expenditure and economic growth and human capital.The second part is the status quo analysis.In Chapter 2,we analyzed and reviewed the poverty situation of China and the poverty reduction policies.Then,based on the changes of China's anti-poverty policies,we use the World Bank POVCAL net online poverty measurement tool measure the current FGT index of poverty in China.At the same time,we also summarize the effectiveness of China's education poverty reduction policies.The total contents of Chapter 3 include the development and tendency of education financial expenditure;and the structure of education financial expenditure at different levels and types;at last,the paper also analyzes the region of China's education financial expenditure heterogeneity from a regional perspective,The next part is the empirical analysis of this article.Our empirical analysis from three perspectives,scale,structure and spatial.In the part of scale effect,we use the FGT index,establish a regression model and analyze the scale effect of poverty reduction in education expenditure.On the basis of calculating the FGT index of each province in the country,we established a panel data regression model analyzes the specific effects of education fiscal expenditure on poverty breadth,poverty depth and poverty intensity in different regions.The second empirical analysis is about structural effects of poverty reduction in education expenditure.Based on the previous chapter,this part further expands the scope of research,and analyzes the poverty reduction effect of the structure of education fiscal expenditure.First,we divided the education into higher education,basic education and secondary vocational education.Based on this,we use China provincial panel data,established a fixed effect model to compare and analyze the poverty reduction effects of different types and levels of financial education expenditure,and then build a panel threshold model,analyzed the non-linear relationship between education expenditure and poverty alleviation.Thirdly,investigate the spatial effect of education expenditure.In this part,we first defined the spatial weight matrix,and then construct a spatial econometric model about poverty alleviation and public education investment.Secondly,according to the results of different types of spatial panel models,select the best fitting spatial panel model.Finally,based on the selected optimal spatial econometric model,analyzed the spatial spillover effect of public education investment on poverty alleviation.The last part of this article is the conclusion and our policies recommendations.There are three aspects: first,the scale of education fiscal expenditure should be continuously expanded to ensure the material basis of targeted poverty alleviation in education;second,the structure of education fiscal expenditure should be optimized to improve the efficiency of poverty reduction in education fiscal expenditure.Not only optimize the investment status of the education level,but also optimize the allocation of education resources between regions,especially should pay attention to increase the education fiscal expenditure on the aspect of vocational skills;third,the education financial system should be improved,not only for poor areas and poor people,but also guarantees the poor 's right to education;fourth,it should focus on improving the rate of return on education and guide people to make correct educational investment decisions.