Research On The Threshold Effect Of Rural Financial Development On Poverty Reduction In Rural Areas

In 2015,at the Central Working Conference on Poverty Alleviation and Development,General Secretary Xi Jinping explicitly wanted to ensure that the national poverty issue be completely eliminated by 2020.As the largest developing country in the world,the issue of poverty,especially that of rural areas,has always constrained the sustained and steady economic growth and social progress in our country.In order to achieve this goal,the government regards rural finance as an important tool for rural anti-poverty work.Based on this,the government has repeatedly reformed the rural financial system.In recent years,the poverty alleviation strategy in our country has been greatly transformed.From the previous relief-oriented and participatory approaches to poverty alleviation and poverty reduction,the transformation of the poverty alleviation strategy calls for a shift in key rural financial services.Only when rural financial services are reasonably adapted to the government's new anti-poverty strategy can the rural poverty problem be resolved more quickly and thoroughly through the cooperation between finance and policy.However,there is still room for further improvement in the rural financial system at this stage.Rural financial services have not yet fully covered the rural population and rural economic activities.Therefore,studying the mechanism of reducing poverty and reducing poverty in rural finance can provide important theoretical and practical basis for the improvement of rural financial system,and can also promote the effective implementation of China's anti-poverty strategy.Based on the theory of rural financial development and related theory of poverty alleviation and poverty alleviation,this paper systematically studies the mechanism of China's rural financial role in alleviating poverty in rural areas,and considers that the development of rural finance in China has two effects on rural poverty alleviation One is the direct effect of the poverty-stricken population being out of poverty through direct credit services;the other is the rise of the living standards of the poor through the trickle-down effect brought about by the improvement of the regional economy and the narrowing of the internal income gap.Then,based on an in-depth analysis of the status quo of China's rural financial development and the status quo of multi-dimensional poverty in rural areas,an empirical study of the poverty reduction effect and characteristics of China's rural financial development is carried out with the help of an econometric model,through the dual structure of formal finance and informal finance.The empirical analysis of rural income poverty and education poverty concluded that in recent years,China's rural financial development has a single threshold effect on rural poverty alleviation.Before and after the threshold,both have a slowing effect on poverty,but the post-threshold mitigation effect is far less than the threshold Of the mitigation effect,and to make a reasonable explanation of this conclusion and analysis.Finally,some suggestions are put forward on the policy optimization strategy and its implementation path for China's rural financial poverty reduction.First,establish a competitive rural financial system;second,increase the capacity for innovation in the rural financial system;third,strengthen rural formal finance for poor people;fourth,improve the rural financial security mechanism;fifth;increase the number of people living in poverty;The supply of credit products;sixth,promote the convergence of formal and informal finance in rural areas.