Research On The Influence Of Financial Development On Poverty Alleviation Key Counties In The Plan For Poverty Alleviation Through Development

Poverty is a common problem of human society and the way to alleviate poverty has always been a worldwide problem. Finance plays an more and more important role in the national economy field. Is there a relationship between financial development and poverty alleviation? Domestic and foreign scholars research the relationship between financial development and poverty alleviation, but they have not yet obtain the consistent conclusion. They formed the three main viewpoints between financial development and poverty alleviation:positive correlation, negative correlation, nonlinear relationships. This paper regards key counties in the plan for poverty alleviation through development as the research objects where poverty is more serious, building an empirical model to study the relationship between them, proposing more targeted policy recommendations to help residents in poor areas out of poverty.Firstly, this paper provides an overview of the theories about financial development and poverty, elaborates the theory of financial development, indicators of financial development, the content of poverty, measurements of poverty. Then analyzes the impact of financial development on economic growth, mainly through the way of risk management, corporate governance, convenient exchange, information revealing and mobilizing saving. However, researches on the relationship between financial development and income distribution are controversial, mainly exists three viewpoints between financial development and income distribution:nonlinear, positive and negative. Based on this, this paper analyze the function that financial development effects on poverty alleviation through the way of economic growth and income distribution effects.Then according to the statistical data, this paper analyzes financial development and the present situation of poverty of key counties in the plan for poverty alleviation through development in Anhui province from different perspective. Financial deposit and loan of key counties in the plan for poverty alleviation through development in Anhui province grow year by year, expanding the scale of development finance, showing the trend of stable development. At the same time, income of residents in key counties in the plan for poverty alleviation through development in Anhui province keep stable growth, incidence and population in poverty is declining, poverty is alleviated to some extent.Through the above analysis,constructing a model by financial development scale, financial development efficiency, economic growth and income distribution as independent variables, and poverty dependent variable. Selecting the corresponding indicators, using 18 key counties in the plan for poverty alleviation through development in Anhui province panel data in 2011-2013 year, analyzing the relationship between financial development and poverty alleviation. Coming to a conclusion:financial development plays a positive and effective role in poverty alleviation in key counties in the plan for poverty alleviation through development of Anhui province. Financial development can effect on poverty alleviation directly, but also play a role in poverty alleviation through way of economic growth and income distribution. The expansion of financial development, improvements in the efficiency of financial development and economic growth can reduce the incidence of poverty and alleviate poverty effectively. But, the larger gap in urban-rural and the more unfair in income distribution will increase the incidence of poverty and worsen the poverty.Finally, this paper based on the results of empirical analysis, proposes policy recommendations in favor of poverty alleviation from financial development perspective: First, accelerating financial development in poor areas to promote economic growth; Second, promoting rural financial reform and system innovation to narrow the income gap between urban and rural areas; Third, improving the financial laws and regulations and financial regulatory system.