The Research Of Threshold Effect Of Poverty Reduction In Gansu Rural Finance

Poverty as a restriction on economic growth is an important problem to be solved,the research of scholars are also involves many aspects of politics,culture and society,more and more scholars from the angle of economics,focusing on the problem of the relationship between financial development and poverty.According to the scholars' research results,it can be concluded that the rural financial development can alleviate poverty in rural areas from two aspects: direct and indirect.The direct way is to get agricultural direct financing from financial institutions for agricultural development funds;indirect means,the further development of rural finance can promote economic growth,alleviate rural poverty indirectly.However,there are their own characteristics of development in each region,so the problem of poverty in different regions also exist obvious differences,the problem of poverty in Gansu province is more serious,in the Midwest national list of 592 impoverished county in 2015 the State Council announced a total of375 counties in the poor county of Gansu province is 43,the rural poverty population up to 3million 170 thousand,the task of getting rid of poverty is still arduous.In order to reduce the poverty,according to the national 2013 precise poverty alleviation strategy,Gansu province through continuous innovation and poverty alleviation work mechanism and mode,increase poverty alleviation efforts,and actively use financial means to support the development of rural poverty alleviation work.This paper takes Gansu Province as the research object,confirming the relations between the rural financial development and poverty reduction by investigation on the present situation and empirical research,and on the basis of this study focused on the role of the level of rural economic growth in the financial poverty reduction.In the empirical part,selected the Engel coefficient of rural residents in Gansu Province as a rural poverty index,using financial ratios to measure the development level of rural finance in Gansu Province,and select the rural per capita income,income distribution,city level and industrial structure as the control variables,the data involving14 citys of Gansu Province,the sample data of time from 2000 to 2014,selecting the relevant model,firstly verified the relationship between rural financial development and poverty in GansuProvince,in the long term,when the rural financial development level in Gansu province increased by 1%,rural poverty reduction will be 0.1046%,which is proved that the development of rural finance in Gansu province can be conducive to poverty in rural areas ease;further analyzed the difference of rural financial poverty reduction effect in different levels of economic growth through the Threshold Panel Model,then verified the level of rural economic growth in Gansu province has a distinct double threshold effect on financial poverty reduction,i.e.when the level of rural economic growth is low,the rural financial development in Gansu province has a significant positive impact on poverty;when the level of economic growth in the medium,the financial development will still make poverty eased,but the financial poverty reduction effect is greatly reduced and showed no significant state;when the economic growth at a high level,the rural financial development will make poverty worse and cannot play the role of financial poverty reduction.So we should come up with more targeted development policy according to the different situations,give full play to the role of rural finance in the alleviation of poverty,then provide more effective measures to solve the poverty of Gansu province and realize a comprehensive well-off society.