Research On The Influence Of Financial Development On Poverty Reduction In China

For the national poverty alleviation, the rural financial development has always been playing an important role. However, through what way or channel do the rural financial development actually relieve poverty, how is the effect? This paper,based on the two basic problems, aims to analyze the internal mechanism, thro ugh which the rural financial development promote poverty reduction,and to explore the correlation between the the rural financial development and poverty relief.At the conclusion of the related scholars’research on the theme, at first,this paper analyzes the inner mechanism, through which the rural financial development promote poverty reduction, and thinks that the rural financial development by providing credit service, can affect the poor investment will, then affects the poor project income, and the rural financial by providing savings services plays an important role for smoothing peasant household consumption and resisting the risk. The rural financial development can promote economic growth and income distribution,then influence the poor income levelthe cost of production and living and income structure, then help the poor to improve its production and living environment, broaden its income channels, indirect influence poverty.Base on the inner mechanism through which the rural financial development promote poverty reduction, this paper selects out of the rural financial development index and rural poverty index to test that the rural financial development reducing poverty channels and effect. According the research conclusion above, the study found that different index of the rural financial development has different effect to low poverty, the same to path that the rural financial development on poverty, and this conclusion conforms to the actual situation of countryside that we have observed.Finally,policy suggestions are given according to the research above,only construct a rural financial system matching rural population demand,then it can promote the rural financial development on poverty effectively.