Study On The Cycle And Structure Effect Of Poverty Reduction In Public Expenditure In China

Despite the tremendous progress made in global poverty reduction,millions of poor people still live in poverty,endure hunger and have no access to basic services.The problem of world poverty remains grim.At the same time,as the most populous country in the world,China' s efforts to reduce poverty are deeply related to the overall results of poverty reduction in the world.As a large developing country with a large agricultural population,the rapid decline of China's rural poverty population has made important contributions to reducing the world's poverty population.In addition,while we recognize the fact that the number of poor people in China is continuously decreasing,another implied problem has gradually become evident.That is,as the poverty population continues to shrink,it becomes more and more difficult for the remaining poor to get rid of poverty.In the past 30 or 40 years,with the rapid development of economy,fiscal expenditure has increased year by year,and the structure of fiscal expenditure has also been constantly adjusted.Since more than 90%of the poor population in China is located in rural areas,the basic and fragile nature of agricultural production determines that the development of rural areas and the increase of farmers' income must rely on the government's attention and support.In rural areas,the main financial support for agriculture,and the use of national finance for education,social security and employment,and health care also play a role in alleviating rural poverty.This article first introduced the current situation of rural poverty in China.The PGT poverty index was used to measure poverty at the national level and 6 provinces in the east,central,and west.The results showed that there were large provincial differences in rural poverty status,and there was a big difference between the FGT index and the official poverty status.Then,we examined the characteristics of rural poverty in China.Overall,China's poverty alleviation has made significant progress.However,the scale of the impoverished population is still huge,while the poverty population is mainly distributed in the western region.In addition to the differences in the regional distribution of the poor,there are also large group differences.Then it analyzes the cyclical fluctuation and structural adjustment of public expenditure in China.Since the reform and opening up,China's public expenditure and GDP have almost maintained the same average annual growth rate.Further empirical analysis shows that China's total public expenditure is pro-cyclical.The inspection of the structure of public expenditure found that since 2000,the state's expenditure on education,social security and employment,medical care and family planning,and agriculture,forestry and water affairs have all increased.Next,this paper analyzes the mechanism of public expenditure and makes an empirical investigation.First,it elaborates the theoretical basis of public expenditure poverty reduction from the aspects of public finance,welfare economics,and development economics,and then sorts out and predicts poverty reduction mechanisms in education,social security,medical and health,and agriculture affairs expenditures.On this basis,an econometric model was constructed,and the aforementioned theoretical predictions were verified using data from the six provinces of the country.The empirical results show that the total amount of public expenditure has a mitigation effect on rural poverty regardless of whether it is at the national level or the provincial level;while the effects of education,social security,medical and health,and agriculture affairs expenditures on rural poverty are not stable or insignificant at different levels.This article attempts to analyze the causes.Finally,based on the results of qualitative and quantitative analysis,a summary of the contents of this article and research findings is made,and the paper try to give a little policy advice.