The Impact Of Rural Financial Institutional Diversity On Farmers' Poverty Reduction

The problem of poverty still plagues China,and today the diversification of manifestations of poverty has become a new feature of poverty,further constraining the country's economic and social development.At present,China is in a critical period of implementation of precision poverty alleviation and precision poverty alleviation strategies,but the slowdown in poverty reduction,the low efficiency of government financial poverty alleviation and the inaccurate identification of poverty standards will contain the effective development of China's development-oriented poverty alleviation work to a certain extent.At the same time,it has also increased the return of poverty in rural areas.As the core of modern economic resource allocation,finance plays an increasingly important role in poverty alleviation and provides effective support for the implementation of China's poverty alleviation strategy.The diversity of rural financial institutions,as an important structural feature of rural financial development,also plays an important role in reducing poverty for farmers.Based on the 2016 China Labor Dynamics Survey Data,this paper considers the multi-dimensional characteristics of rural household poverty,builds a multi-dimensional indicator system for poverty,measures the poverty situation of farmers,and empirically analyzes the impact of rural financial institution diversity on rural household poverty using the Ordered Probit Model.The results show that the diversity of rural financial institutions can significantly reduce the poverty of farmers.At the same time,the higher the level of development of rural financial institutions,the less likely they are to fall into the higher poverty level.This paper also empirically studies the poverty alleviation effects of rural formal financial institutions and informal financial institutions,and finds that informal financial institutions have the advantages of relieving information asymmetry,reducing transaction costs,and lowering credit thresholds,compared with rural formal financial institutions.The advantages of effective internal supervision and other factors have a greater role in promoting the poverty alleviation of farmers.The above research conclusions have important implications for China's anti-poverty and rural financial deepening reform policy formulation.First,the government should expand its understanding of the connotation of poverty,measure poverty in a multi-dimensional perspective,and help to identify the poor more accurately and develop more effective classification poverty alleviation policies.Second,deepening the reform of the rural financial system and promoting the diversity development of rural financial institutions,can effectively promote poverty alleviation.Third,strengthening the poverty alleviation of rural financial institutions for poor farmers,especially those in the middle and high-dimensional poverty situation,and improving the breadth and depth of rural financial poverty reduction coverage,can deepen the poverty level of farmers.Fourth,the government should pay attention to the positive role of informal financial institutions in rural areas,promote the coordinated development of formal financial institutions and informal financial institutions,and jointly play a role in poverty reduction.