Research On The Poverty Reduction Effect Of County Financial Development In Gansu Province

Since the 18 th National Congress,the party and the state have attached great importance to poverty alleviation work,and have implemented a large number of measures to benefit the people.The people have gained a significant improvement in their sense of achievement and made great progress in tackling poverty.With the imminent realization of the overall goal of poverty alleviation in 2020,China's absolute poverty problem will be gradually solved,but the relative poverty and multidimensional poverty levels are still at a relatively high level.Gansu's county development is backward,the area of poverty is wide and the degree of poverty is deep.There are 86 counties in Gansu province,including 58 national poverty counties and 17 provincial poverty counties.The development of Gansu County is slow,and there are many problems such as insufficient resources and the outflow of the labor.The county is the largest poverty-stricken unit,and the reduction of county poverty has a significant impact on whether the goal of poverty alleviation can be achieved smoothly.As the core of county development,finance plays an important role in the process of poverty reduction in counties.The poverty reduction of finance determines the process of poverty reduction in counties.Therefore,it is necessary and important to study the poverty reduction of finance in the county.This paper explore the role of county finance on multidimensional poverty reduction with a combination of theoretical and empirical research methods in Gansu Province.On the theoretical level,the article sorts out the research status of financial development and poverty alleviation,introduces the research foundation and the typical models of financial poverty reduction abroad and elaborates the mechanism of financial development on poverty alleviation.In empirical terms,the article measure multidimensional poverty with entropy method.Empirical Research is based on thepanel data of poverty-stricken counties in Gansu Province from 2007 to 2016 and uses the fixed-effects model and the threshold effect model.The study concluded that:(1)the scale of financial development is conducive to multidimensional poverty reduction and the efficiency of financial development is not conducive to the multidimensional poverty reduction in counties.(2)The poverty alleviation effect of financial development is based on the scale of per capita investment in counties.When the scale of per capita investment is lower than the threshold,the financial development plays a significant role in promoting multidimensional poverty alleviation;when the scale of per capita investment is higher,the poverty reduction effect of financial development is slowing down in counties.(3)The industrial structure of county plays the most important role on affecting the multidimensional poverty alleviation.Finally,the article puts forward suggestions on improving the county financial poverty reduction system,rationally adjusting the industrial structure of the county,paying attention to the ability of population development in counties and so on.