The Impact Of Inclusive Financial Development On Poverty Alleviation In China

Poverty has always been a serious problem in the process of economic and social development in China.In recent years,China has succeeded in reducing the numbers of people in absolute poverty,while the problem of relative poverty is getting worse.The underprivileged groups such as low-income earners and small businesses who with no credit record and lack of collateral are excluded in the financial system because of the ingrained dual financial structure and the imperfect financing market.Anti-poverty experiences in many developing countries also proved that the greatest difficulty to overcome poverty for those people is capital constraints.Without financial support,they must rely on their own internal resources or wealth to invest in their education,or any opportunity that can enhance their ability.As the development and extension of micro credit and micro finance,Inclusive Finance was first proposed in 2005 "the year of micro-credit",and since then was highly valued by our government because of the role of promoting healthy economic development,improving social well-being and promoting equity,and promulgated and enacted a number of related policies to help the underprivileged groups.With the combination of the scattered micro-finance services and micro finance institutions,we can build an inclusive financial system covering all the people to promote poverty alleviation.Developing an inclusive financial system has important theoretical and practical significance for China's economic development and the development of poor groups.At present,the research on the relationship between inclusive financial development and poverty alleviation is still in the preliminary stage,and needs further systematic,in-depth and solid research.This paper takes it as the research object,and the methods of literature review,comparative analysis and empirical analysis were used in the study.First,the paper defines related concepts,and then lists some international experiences of inclusive financial development.Second,based on the definition of the connotation of Inclusive Finance and Poverty,this paper measures the index of inclusive financial development by using the panel data from 2009 to 2015 of 31 provinces.Then,briefly described the background how the finance inclusion was introduced into the field of poverty alleviation.Third,based on all of that,using the dynamic GMM model to examine the relationship between inclusive financial development and poverty alleviation.In order to ensure the reliability of the conclusions,this paper makes a robust test.The results show that the development of Inclusive Finance has a significant positive correlation of poverty alleviation,and with the development of inclusive finance,the issues of poverty in each area will be relieved,we can also find that poverty alleviation is an ongoing process.Finally,based on the comprehensive analysis,this paper provides some suggestions on how to further promote the development of Inclusive Finance in China.