Analysis Of The Poverty Reduction Effect Of Financial Support For Agriculture In Xinjiang

From the social welfare perspective, the level of social welfare depends not only on thedegree of accumulation of social wealth, but also depends on the situation of social wealthdistribution between the members of society. The outward manifestation of the level of socialwealth accumulation is a country’s economic growth, and it depends on the level of inputs andallocation efficiency of the factors. Inputs under certain conditions, the accumulation ofwealth depends largely on the efficiency of factor allocation which depends on the marketprice. The price mechanism is a tool to initial distribution of the social wealth; it is reasonableor not decides the state of social wealth distribution between the members of society.Government uses the secondary distribution of social wealth to fix the price formation of theinitial allocation. So, the responsibility of a country’s poverty abatement is given to thegovernment. Formulation of fiscal policies conducive to poverty reduction, the Governmentmay face many difficulties, such as unpredictable and the failure of the market, thegovernment and the system is imperfect, unstable macroeconomic situation. Nevertheless,fiscal policy by which the Government is committed to reducing poverty remains animportant policy tool. How the poverty reduction effect of the financial expenditure in onecountry or region poverty reduction practices is an open question. How to allocate resourceseffectively, reduce poverty, so that the fruits of development are shared by the people, is thebasic requirement of building a harmonious society.Relative to each part of the financial expenditure, financial support for agriculture makesthe greatest impact on the agricultural sector. Viewing of the main analysis in this article ispoverty in rural areas, so I only select financial support for agriculture in fiscal spending toanalyze the effect of its poverty reduction in rural areas of Xinjiang.The article is organized as follows: the first chapter introduces the contextual meaningof the topic and related literature review, under which determine the structure and methods ofanalysis; Second chapter is the theoretical basis for poverty reduction in financial support foragriculture; Chapter three:first, analyze the rural poverty situation in Xinjiang, including thedistribution and the reasons of poverty. Second, using FGT index based on statistical data,calculate and analyze1980-2010Xinjiang rural poverty, and it becomes the data base ofcorrelation analysis; The fourth chapter, analyze the current situation of financial support foragriculture in Xinjiang from the total amount, the structure and the strength of financial support for agriculture; The fifth chapter is the empirical analysis of Xinjiang rural povertyreduction effect of the total amount and various sub-items of financial support for agriculture;Chapter6: according to the article conclusions put forward relevant policy recommendations.This article uses Eviews5.0software to examine the relationship between Xinjiangfinancial support for agriculture and rural poverty reduction, finds that the effect of financialsupport for agriculture in Xinjiang to rural poverty reduction is significant; adding ruralproduction expenditures and technological support for agriculture in the structure of financialsupport for agriculture have a significant role in rural poverty reduction, while investment inrural infrastructure and agriculture, forestry, water vapor and other departments funds havenot significant effect on Xinjiang rural poverty reduction, inefficient allocation of funds tosupport underdeveloped areas contrary to expectations of the role of policy makers in ruralpoverty reduction in Xinjiang.