Social Networks And Poverty Vulnerability

In 2012-2017,the incidence of poverty dropped from 10.2%to 3.1%and the scale of poverty reduction reached 68.53 million.However,the problem of poverty in China is still grim.On the one hand,there are still many poor people in China,both of whom are in-depth poverty and "hard-bones" on the road to poverty alleviation.On the other hand,The family who escape the poverty will drop into poverty again.Some studies show that the rate of repoverty in rural areas is as high as 20%Repoverty is also a"stumbling block" on the road to poverty reduction.Therefore,how to realize the goal of eliminating poverty and alleviating poverty thoroughly is the center of targeted poverty alleviation in the future.it is also the "bottom line goal�and "the last kilometer"of deciding to build a well-off society in an all-round way.Social networking plays an important role in family life.Since ancient times,China has been a society of relationship and even poor families have devoted much time and energy to cultivating relationships.So,will this social network help to reduce poverty?If so,what channel is it?At present,the poverty reduction effect of social networks has been extensively studied,but the research on its mechanism of action is rare,and the research on the mechanism of action on poverty vulnerability is even more neglected.Based on this,this paper firstly expounds the mechanism of social network impacting on poverty vulnerability at theoretical level.Then,we take the three-year National Family Tracing Data(CFPS)in 2010,2012 and 2014 as the research sample,choosing the variable to represent society network by the standard of universality and diversity Then we use factor analysis to construct the comprehensive coefficient of social network;then draw lessons from Chaudhuri et al.(2002)to measure the poverty vulnerability at home level;and use the mediating effect test model and Heckman two-step method to explore the social network's impact on poverty vulnerability as well as its mechanism.Finally,the paper draws the conclusion that social networks can effectively reduce the poverty vulnerability of families and mainly through the promotion of employment.While social networks can also increase informal financial families,informal finance does not reduce the vulnerability of households to poverty.This conclusion also applies to rural areas and towns.