The Study On The Poverty Reduction Effect Of Financial Development In Henan Province

After many years of development in Henan Province,the economic strength has been significantly improved,the quality of life and living standards of the poor groups have been improved,the number of the poor groups has been reduced,the savings of the poor groups have been increasing,and the incidence of poverty has been reduced.At present,the province's Lankao County and Huaxian County have achieved poverty alleviation.But there is still a long way to go to achieve the goal of lifting poverty out of poverty in an all-out way by 2020.The policies and methods of poverty management will be optimized and improved with the development of society.With the development of economy,the scale of financial institutions is expanding,the quantity of financial assets is increasing,the function of financial development is becoming more and more prominent,and the effect of reducing poverty has been paid more and more attention by more and more scholars.At the same time,the research on the relationship between financial development and poverty is becoming more and more abundant in the research of domestic and foreign scholars.Under the background of poverty alleviation at present,it is of great practical significance to study the relationship between financial development and poverty reduction in Henan Province.First of all,under the background of poverty alleviation,this paper puts forward the related propositions of financial development and poverty reduction in Henan Province.On the basis of relevant literature research,the existing research results are sorted out in a hierarchical way.The relationship between financial development and poverty reduction is classified and summarized.Through the research of domestic and foreign scholars,it is found that there is no consistent conclusion about the poverty reduction effect of financial development.According to the present situation of Henan Province,this paper studies the poverty reduction effect of financial development in Henan Province by combining theory with practice.At the same time,the significance and innovation of this paper are put forward.Secondly,the related theories of poverty and financial development are introduced respectively.On this basis,the paper studies the mechanism of poverty reduction of financial development,and finds that financial development can directly affect the poor through the services of capital markets and banking institutions,and raise their income levels.And then improve their living conditions.At the same time,financial development can also indirectly affect the poor through economic growth and income distribution,that is,by mobilizing savings,risk management and corporate governance to promote economic growth.Then,through the employment effect,investment effect and saving effect brought by economic growth,they can raise their income level so as to promote the development of poverty reduction and improve their poverty status.Thirdly,the paper describes the scale of financial development and the efficiency of financial development in Henan Province,and finds that the financial development situation in Henan Province is better.At the same time,it is found that the development of banking,insurance and securities industry is improving to promote the development of the financial market in the province by analyzing the status quo of the major financial institutions.It also objectively evaluates the problems existing in the financial development of the province.On the whole,this paper describes the distribution of poor groups in Henan province,and finds out the areas with deeper poverty.This paper expounds the main characteristics of 18 urban poor groups,and finds that they have the characteristics of low education level,easy to return to poverty,and the income gap between urban and rural areas continues to expand.It also analyzes the development of financial institutions in rural areas,and finds that the financial supply in poor areas is increasing,microcredit services continue to be promoted,and the types of insurance business are increasing day by day.Finally,based on the literature review,financial development theory and poverty-related theory as the theoretical basis of this paper,combined with the status quo of financial development and poverty in 18 cities in Henan Province,the related index data from 2007 to 2017 are collected and processed.The scale of financial development and the efficiency of financial development are used to express the financial development of Henan Province,and the short panel analysis is carried out by using Stata14.0 software.The empirical results show that the current financial development can promote the process of poverty alleviation,the increase of GDP per capita and the reduction of income gap between urban and rural areas are beneficial to the improvement of poverty.At the same time,fiscal policy,investment in education,urbanization level and indicators of primary industry can also improve poverty to a certain extent.In summary,in the process of economic development in Henan Province,do not ignore the role of financial development.The expansion of the scale of financial institutions,the increase in the number of financial assets,and the abundance of financial products will,to a certain extent,promote the development of regional economy.With the continuous development of rural financial institutions,not only to promote the development of financial business in rural areas,but also to enable the poor groups to obtain employment opportunities,find a new channel to increase income.Therefore,the improvement of the degree of financial development promotes the economic development of poverty-stricken areas,which is manifested in the improvement of poverty status of poor groups.Financial poverty alleviation as a new model of poverty alleviation,which is produced in practice,plays an active role in building a well-off society in an all-round way.