Research On The Impact Of Financial Development In Shanxi Province On Poverty Alleviation

With the continuous development of Shanxi's economic level over the past four decades of reform and opening up,the people's living standards have been greatly improved,and the problem of poverty has gradually improved,but there is still some distance from the complete elimination of poverty.To this end,the Party's Nineteenth Congress report pointed out that when the well-to-do society is to be fully established by 2020,the poor counties and the poor will be completely removed.In the face of hard tasks,the Central Economic Work Conference to be held at the end of 2017 will win the precision.Poverty fighting is one of the three major challenges.Therefore,from now on,the next two years will be the key victory period for Shanxi province to fully eliminate poverty and move towards a well-off society,and it will be the top priority for Shanxi Province's work.At the same time,poverty alleviation is a project with a large amount of funds and obvious public welfare.This requires governments,financial institutions and other organizations to provide large amounts of financial support and preferential loans.At present,the financial assistance funds for poverty alleviation in Shanxi Province have continuously increased rapidly,which has made significant contributions to the accurate poverty alleviation and accurate poverty alleviation work in Shanxi Province.The first chapter of this paper first sorts out the literature on poverty alleviation in financial development at home and abroad,and concludes three effects of financial development on poverty alleviation: financial development has slowed down poverty,financial development has exacerbated poverty,and financial development has slowed down poverty.There is an inverted "U" type relationship that first increases and then slows down.Afterwards,the research framework and research methods of this paper are explained and the innovation and deficiencies of this paper are analyzed.The second chapter of this article first defines the concepts of financial development and poverty alleviation.Then,after reviewing and reviewing the current financial development theory and poverty alleviation theory,a direct and indirect mechanism for financial development to reduce poverty has been derived.The mechanism means that financial institutions directly reduce poverty through the provision of savings,credit,and insurance services;indirect mechanisms refer to financial development through economic growth to increase the income of the poor to alleviate poverty,and to alleviatepoverty by narrowing the urban-rural income gap.The third chapter of this paper first analyzes the economic status of Shanxi Province from the aspects of total economic output and industrial structure.After that,it analyzed the current situation of financial development in Shanxi Province.In the analysis of financial development status,it first analyzed the status quo of Shanxi's financial industry from the perspective of financial development efficiency,which is very financial development scale,and then from banking,securities,insurance,and Four aspects of other financial institutions analyzed the status quo of the development of financial institutions in Shanxi Province.In the analysis of the status quo of other financial institutions,the current status of the development of the two most important financial institutions in Shanxi Province,small loan companies and rural credit cooperatives was emphatically analyzed.Finally,it analyzes the main problems in the financial development of Shanxi Province.In analysing the status quo of poverty alleviation in Shanxi Province,the analysis focuses on four aspects: the distribution of poverty,the causes of poverty,poverty alleviation methods,and the effectiveness of poverty reduction.In the end,this paper analyzes the current situation of financial poverty alleviation in Shanxi Province.The fourth chapter of this paper uses Shanxi Province's annual time data from 1978 to 2016 to study the mitigation effect of financial development in Shanxi Province on poverty.The dependent variable is selected from rural Engel's coefficient to measure the poverty level.The per capita GDP is selected as an independent variable to measure the basic economic growth.Under the circumstances,the scale of financial development and the efficiency of financial development are used to measure the level of financial development in Shanxi Province.The ratio of disposable income of urban residents and rural residents is selected to measure the income distribution gap,and the data is processed to pass the unit root test.The lag order is determined,and the co-integration test is used to analyze the long-run equilibrium relationship between these five variables.Then the VEC model is established to analyze the short-term interaction relationship.The empirical results show that the financial development scale,financial development efficiency,and economic growth in Shanxi Province have a long-term role in promoting poverty alleviation in Shanxi Province.The long-term expansion of urban-rural income gap exacerbates poverty,and in the short term,only the scale of financial development.Poverty has been slowed down,and other variables have had little effect on poverty alleviation.On the basis of empirical analysis,the fifth chapter of this paper puts forward financial and poverty alleviation countermeasures in response to the situation inShanxi Province.It is hoped that this study will help eliminate poverty in Shanxi Province.