The Research On Poverty Reduction Effect And Mechanisms Of Inclusive Finance Development In China

At present,China's economy has gradually stepped into the new normal,with downward pressure on economic growth and new challenges in poverty alleviation.Poverty reduction through traditional means is not sustainable.Inclusive finance,as a new financial development model,plays an important role in promoting poverty alleviation in the world and is an effective financial means to promote China's rapid poverty alleviation in the new era.However,there is still no agreement on the poverty reduction effect of inclusive finance at the theoretical level,and the specific mechanism of the effect of inclusive finance on poverty alleviation is still unclear.Therefore,this paper makes an in-depth study of the poverty reduction effect and its mechanism of inclusive finance development in China,which is of great theoretical and practical significance in clarifying the theoretical relationship between inclusive finance development and national poverty alleviation and in promoting the poverty alleviation effect of inclusive finance in China in the new era more effectively.Based on the theoretical analysis of inclusive finance and poverty alleviation,this paper firstly study the inner mechanisms between inclusive finance development and poverty alleviation from direct and indirect paths of action,secondly,to truly reflect the level of inclusive finance,the development level of inclusive finance in 31 provinces and cities in China in recent ten years was measured by using the dimensionless index,the combination of subjective and objective weight:ing method and the weighted arithmetic synthesis method,on this basis,this paper selects relevant data of 31 provinces and cities in China at the provincial level to construct dynamic panel data GMM model to empirically test the poverty reduction effect and mechanism of inclusive finance development,finally,summarize the conclusions and put forward policy suggestions.Through theoretical analysis and empirical test,this paper comes to the following conclusions:firstly,from the horizontal perspective,the development of inclusive finance is uneven among provinces and cities.The level of inclusive finance in eastern provinces and cities is relatively high,while that in central and western provinces and cities is relatively low.From the vertical perspective,the development of inclusive finance in all provinces and cities is increasingly optimistic.Secondly,the development of inclusive finance has obvious poverty reduction effect,which shows that the improvement of inclusive finance is conducive to the alleviation and elimination of poverty.Thirdly,the indirect mechanism of financial inclusion development and poverty reduction has a significant effect.Indeed,financial inclusion development can achieve the goal of financial inclusion development and poverty reduction through promoting economic growth and improving income distribution.Finally,the paper puts forward some policy suggestions according to the conclusions.Firstly,in order to further promote the development of inclusive finance with higher quality,the government needs to overall control and promote the regional equalization of inclusive finance development system,ease credit constraints with land system reform,and innovate inclusive finance products to meet the financial needs of vulnerable groups.Secondly,in terms of continuing to strengthen the poverty reduction function of inclusive finance development,we should give full play to the indirect mechanism of inclusive finance development and poverty reduction,do a good job in the prevention and control of inclusive finance risks and coordinate the pattern of large-scale financial poverty alleviation.