Financial Support Efficiency Of Qinba Poverty Areas Based On DEA Model

By30years of reform and opening up, China’s economy has gained rapid development, but China is still a developing country, the poor are still large, national poverty reduction strategy has become a daunting task in China. From the1980s, China began a large-scale poverty alleviation work, has yielded some success, but because of China’s huge population base, the number of poor people is still not small. In a market economy, finance has been the core of modern economic development, financial development promote economic growth and help farmers increase income, but there is a serious imbalance in the allocation of financial resources. The economically developed eastern region has adequate financial resources, and the economy is relatively backward in the Midwest financial which has poor financial resource. The behind financial development is further cause of poverty. In2011, the Chinese government introduced a new policy, re-division of China’s poor concentration contiguous areas, poor counties. As if, in our poor concentration contiguous areas, underdeveloped economic, low allocative efficiency of financial resources.Poor contiguous zone of Qinba is a typical Chinese contiguous poor areas, contains a lot of the county of Shaanxi province. It is necessary to study China financial efficiency of reducing poverty in the poor contiguous zone of QinBa, in order to explore the financial efficiency of reducing poverty in poor mountainous areas of China.Firstly, based on financial development theory and financial efficiency theory of poor area, this paper analyzed the factors which affected the financial allocation efficiency of resources, and build an analytical framework of financial efficiency in Qinba contiguous poor areas. This article pointed out that financial efficiency evaluation is an integrated measure which contained the rural financial service coverage, sustainability and welfare of residents in poor areas of organizational development finance. Then based on the analysis framework of the financial support efficiency, this paper analyzed financial support efficiency of reduction poverty, Respectively the macro environment of rural financial sustainable development in contiguous area of Qinbat, the setting of contiguous poor areas of rural financial institutions, financial markets, the efficient use of financial resources in poor areas, and rural credit performance analysis of social aspects of reform.Empirical part of this paper is selected twenty typical poor county from the region of Qinba, and comprehensively considered various factors, select the appropriate financial resources into national output indicators and targets, and then use the model of DEA to measure China Qinba poor contiguous areas’s financial support efficiency. The empirical results show that: the majority of Qinba contiguous county destitute area, the formal Financial Institutions’ financial support technical efficiency, pure technical efficiency and scale efficiency did not reach the active state. Also analyzed the changes of Malmquist index rate in each county between years and some county unobserved financial support efficiency, too. The results show: the financial support efficiency of China Qinba contiguous poor zone is not high, but unobserved financial technology more efficient than the formal financial technical efficiency. Based on DEA model analysis results, this paper proposed some targeted policy recommendations to improve the efficiency of the financial support. Such as government division of labor market, liberalization of the financial market, improve the public finance system, the formal financial and unobserved financial cooperation, the establishment of financial and insurance markets, risk diversification, etc..