Research On Poverty Reduction Effect Of Inclusive Finance In Central And Western Regions Of China

The issue of poverty has always been a major concern of the Chinese government.Since the founding of the People's Republic of China,and especially since the reform and opening up,the Chinese government has carried out many poverty alleviation and development efforts and achieved remarkable achievements.The number of people living in poverty fell from 770 million in 1978 to 30.46 million at the end of 2017.In nearly 40 years,the number of people living in poverty fell by more than 96%.However,the poverty alleviation work is still far from the end.The number of poor people in China is still huge,and there have also been new changes in poverty,such as the return of poverty to poverty-stricken people,the gradual concentration of poor people in difficult conditions,and the widening of income gaps in rural areas.Faced with the new changes in the poverty issue under the new situation,traditional ways of poverty reduction can play an increasingly limited role.There is an urgent need for new poverty reduction methods and poverty reduction theories to promote poverty alleviation.As the core of modern economy,finance has great potential in promoting poverty alleviation.As an important means to boost financial poverty alleviation,inclusive finance has received increasing attention from the Party Central Committee and the State Council.On November 15,2013,at the Third Plenary Session of the 18th CPC Central Committee,the Chinese government put forward a resolution on the construction of the inclusive financial system in the Decision of the CPC Central Committee on Several Major Issues Concerning the Comprehensive Deepening of Reforms.Policy protection height.However,there are few studies on the promotion of poverty alleviation through inclusive finance.What kind of way does inclusive finance reduce poverty,and which dimensions of the inclusive financial system have better poverty reduction?There are few answers to this question.Therefore,this article takes this as the research object.after introducing the related definition of inclusive finance and poverty issues,it analyzes the mechanism of promoting poverty alleviation through inclusive finance from a theoretical perspective.That is,inclusive finance provides indirectly poverty relief by providing financial services directly to the poor,and inclusive finance promotes economic growth and income distribution.After the theoretical analysis,this paper also uses the data of 18 provinces,municipalities,and autonomous regions in the Midwest to measure the development status of inclusive finance in each region.Based on this,the panel data model is used to promote poverty alleviation through inclusive finance.Empirical analysis.The empirical results show that inclusive finance really has the effect of promoting poverty alleviation.From the perspective of dimensions,the poverty reduction effect of population dimension,loan dimension and insurance dimension in the inclusive financial system is very obvious.Finally,this article proposes corresponding policy recommendations based on the conclusions.