Financial Development,Fiscal Support To Agriculture And Poverty Alleviation

The 18 th National Congress of the Communist Party of China proposed to achieve the ambitious goal of building a moderately prosperous society in all respects by 2020.But the problem of poverty is one of the obstacles to build a moderately prosperous society in all respects.Therefore,the eradication of poverty has become particularly important.Only by solving the poverty problem of the rural population can we achieve comprehensive poverty alleviation.In the process of China's economic system reform and urbanization process,the gap between the rich and the poor is widening.The Chinese government has been committed to poverty alleviation in poverty-stricken areas,but the poverty situation in China is still relatively severe at this stage.According to the National Bureau of Statistics,there were still 16.6 million rural poor in China at the end of 2018.Domestic and foreign research shows that financial development can significantly contribute to poverty alleviation through economic growth,income distribution,and industrial institutions.In this context,research on the relationship between financial development and poverty alleviation is of great significance for promoting poverty reduction in poor areas.The paper first systematically analyze and sort out the theory of financial development and poverty alleviation,and then elaborates on the current status of financial development and poverty alleviation.Based on this,we take the panel data of 31 provinces from 2003 to 2017 as the research sample,then we construct the panel threshold model and PVAR model.Finally,we use empirical analysis on the relationship between financial development,fiscal support for agriculture and poverty alleviation.In the part of static analysis,by constructing the panel threshold model,the paper analyzes the nonlinear relationship between financial development and poverty alleviation under different level of fiscal support to agriculture,and then adds the control variables into regression model,such as regional economic growth,industrial structure,income gap.Finally,the paper conduct a robustness test.In the part of dynamic analysis,financial development,fiscal support for agriculture and poverty alleviation have complex interdependence.In order to fully reflect the interaction between the three,the paper chooses panel vector autoregressive model(PVAR)to analyze financial development,fiscal support for agriculture and poverty alleviation.In order to make a further study on the relationship between financial development,fiscal support for agriculture and poverty alleviation,the paper use the panel data stability test,Granger causality test,impulse response analysis and variance decomposition analysis.Finally,the paper draw a conclusion that the dynamic impact mechanism of financial development,fiscal support for agriculture and poverty alleviation.The results show that:(1)In the static part,the effect of financial development on poverty alleviation is affected by the single threshold of fiscal support for agriculture.Compared with the lower level of financial support for agriculture,the scale of financial development and the efficiency of financial development under the higher financial support level promote the poverty alleviation more powerful.At the same time,fiscal support for agriculture will also promote poverty alleviation.(2)In the dynamic part,financial development scale and financial development efficiency all have positive effects on poverty alleviation;poverty alleviation has a negative effect on financial development scale,and has a positive impact on financial development efficiency;fiscal support for agriculture has a positive impact on poverty alleviation and financial development.In the long run,the poverty alleviation effect of financial development scale and fiscal support for agriculture can be accumulated.The sustainable development of finance can increase the level of fiscal support for agriculture,and poverty alleviation can effectively improve the efficiency of financial development.Finally,the paper proposes relevant policy recommendations based on theoretical analysis,current situation analysis and empirical results.