Research On The Effect Of Financial Development On Poverty Reduction

The report of the 19 th CPC national congress made it clear that we must resolutely win the battle against poverty.As the core of economy,finance provides important support for poverty alleviation.So what is the effect of financial development on poverty reduction? Has the monetary policy achieved targeted poverty alleviation? How should fiscal policy and monetary policy work together in targeted poverty alleviation?These are the key issues in the fight against poverty.The main research contents and conclusions of this paper are as follows:First,the historical evolution of financial poverty reduction and the current situation of the development of poor areas.Based on present situation of rural poverty and financial development of China,financial poverty reduction policy,a series of program outlines and work practices,this paper systematically combs the historical evolution of China financial poverty reduction.With the deepening of poverty reduction work,the connotation of financial poverty reduction is becoming richer and richer.At the same time,the paper describes the economic,social and financial development of the poverty-stricken areas from the vertical and horizontal dimensions based on the survey data of 832 state-level poverty-stricken areas.Second,the direct and indirect effects of financial development on poverty alleviation.On the basis of elaborating the mechanism of action of the theoretical model,this paper uses five indicators such as money flow situation and financing situation to measure the financial development status.Financial development can indirectly affect the income level of poverty-stricken areas and counties through economic growth,but the effect of indirectly affecting the incidence of poverty in poverty-stricken areas and counties is not significant.Third,the role of financial poverty reduction under the guidance of monetary policy.This paper constructs a theoretical analysis model to explore the mechanism of financial poverty reduction under the guidance of monetary policy and expounds the realization path of the mechanism.The empirical study shows that the implementation of monetary policy and the development of finance can effectively increase the per capita income of rural residents in poor areas and reduce the incidence of poverty in poor areas.The combination effect of monetary policy and financial development is not obvious in poverty reduction in poor areas.In regions with better financial development,monetary policy has been more effective in reducing poverty.Fourth,the analysis of poverty reduction effect of fiscal and financial interaction.On the basis of theoretical analysis and research hypothesis,this paper finds that fiscal and finance have positive effects on economic development and poverty reduction in poverty-stricken areas and counties.At different stages of poverty level,finance has threshold characteristics for economic development and poverty reduction effect in poor areas,and there are two threshold levels for mechanism transformation.There are two threshold levels for the transformation of development mechanism.When the poverty level is at a lower stage and a higher stage,the effect of finance on economic development and poverty reduction is greater than that of finance.When the poverty level is in the middle stage,the effect of finance on economic development and poverty reduction is greater than that of finance.Finally,Policy suggestions on improving the effect of financial poverty reduction.In view of the actual situation of financial poverty alleviation in China,should be in promoting financial poverty alleviation combined with industry development,encourage innovation of financial products and services at the same time,to speed up the foster the subject of rural financial institutions,establish a multi-level and moderate competitive rural financial market system,pay attention to optimize financial ecological environment and poor areas to establish credit funds risk disperse mechanism for poverty alleviation,make modern financial services to poor areas and weak links in economic and social development,accelerate the pace of poverty population out of poverty to get rich,consolidate the effectiveness of poverty eradication,and strengthen the effective link with rural revitalization.The contributions and innovations of this paper are as follows: First,it constructs the analysis framework of financial poverty reduction for the first time.Based on the domestic and foreign researches,this paper constructs the direct and indirect mechanism of financial poverty reduction,and analyzes it through empirical analysis,so as to deepen the relevant research results of financial poverty reduction.Second,the survey data enrichment,the impoverished county data collection analysis complete coverage.At present,domestic researches mainly focus on provincial data or data of some poverty-stricken counties.In this paper,data of 832 poverty-stricken counties are collected and analyzed in the form of questionnaire,and its influence mechanism is tested.Third,the poverty reduction effectiveness of monetary policy instruments is systematically assessed.This paper analyzes the mechanism of financial poverty reduction under the guidance and leverage of monetary policy tools,and takes county legal person financial institutions as an example to empirically study the effectof monetary policy tools on poverty reduction,so as to provide reference for China to improve and perfect the use of monetary policy tools.Fourth,from the perspective of policy mix,comparative analysis of fiscal policy and financial policy poverty reduction effectiveness.This paper systematically discusses the effects of fiscal policies and financial policies on poverty reduction.The empirical results show that there are differences in the effects of fiscal policies and financial policies in different stages of poverty,which provides a reference for how to coordinate and apply the two policies well in poverty reduction so as to give full play to the effects of policies.