Researching For The Interaction Between Financial Exclusion And Poverty In China’s Rural Areas

Financial exclusion,the basic meaning of the existence of certain groups in the community because of the lack of adequate way or way to access to financial institutions to meet the needs of the necessary financial products,a phenomenon,and based on China’s rural areas facing the reality of the financial industry Situation,we can determine that China’s rural areas there is a more serious phenomenon of financial exclusion,and different regions of different financial exclusion.On the other hand,although the proportion of the rural poor in China is gradually decreasing with the rapid development of the economy,the complexity of society,economy,environment and the intertwined nature makes the fragile rural residents cope with various The risk of the situation is deteriorating.At the same time,the marginal benefit of the government’s poverty alleviation effect is decreasing,the target of poverty alleviation fund is not accurate enough,and the intensity of poverty alleviation begins to decrease.Therefore,compared with the city,the most important problem in rural areas is poverty,Poverty eradication is the ultimate goal and foothold to solve the "three rural" problem.Through the literature reading,it is found that there is a correlation between financial exclusion and economic development in rural areas.There is also a correlation between poverty degree and economic development,regional financial exclusion and poverty,mutual influence and interaction,which affect the local social and economic development.Studying the relationship between financial exclusion and the degree of poverty can provide a reference for reducing the degree of financial exclusion and poverty in rural areas.This paper first elaborates the background,purpose and significance of the research,draws the general conclusion from the related literature at home and abroad,so as to provide the research ideas for the article.Then,based on the use degree,the degree of profitability,the depth and the affordability of the financial service,Financial exclusion index system,the use of China’s provincial panel data from 1995 to 2014,the measurement of rural areas in different provinces in China nearly 20 years of financial exclusion index;then,based on data availability and the reality of China’s rural areas,the R poverty index This paper uses the provincial panel data from 1995 to 2014 to measure the degree of poverty in the rural areas of our country in the past 20 years.Secondly,using the panel data of the financial exclusion and poverty degree in the rural areas of China,,The second-stage least squares method is used to analyze the interaction between financial exclusion and poverty degree in rural areas of our country.Finally,based on the empirical results,the suggestions are given to reduce the degree of financial exclusion and poverty.The results show that the financial exclusion index in the rural areas of China has gradually decreased from 1995 to 2014,and the eastern region is lower than the central region and the central region is lower than the western region,that is,the rural areas have the highest degree of financial exclusion in the rural areas.The poverty level in the region from 1995 to 2014 is also declining,with the highest in the western region and the lowest in the eastern region.The empirical analysis of the interaction between financial exclusion and poverty shows that the impact of financial exclusion on the degree of poverty in rural areas in eastern provinces is not significant,and the degree of poverty has a significant effect on financial exclusion.The impact of financial exclusion on poverty in central and western provinces Significantly,the impact of poverty on financial exclusion is also significant,are positive correlation;the empirical results in the national region and the eastern provinces consistent.Regardless of the relationship between financial exclusion and the degree of poverty,it is necessary to develop both the rural economy at the same time,but there will be differences between the regions.The eastern provinces with small and poor poverty in rural areas should focus on rural finance The development of the financial industry to promote the local economic development of the new impetus,and for rural poverty and the local financial exclusion there is a significant impact on the western provinces,the current should be more focused on improving rural infrastructure construction,strengthening the social security of farmers,Thereby reducing the degree of rural poverty,thereby reducing the degree of financial exclusion.