Study On The Poverty Reduction Effect And Influencing Mechanism Of Urbanization In Rural Areas

Poverty has been attached great importance to by governments for a long time,and it is a great challenge faced by all countries in the world,especially the less developed countries.China is the largest developing country in the world,which has a great influence in the global anti-poverty struggle.Since the reform and opening up,China's urbanization process has been advancing with the rapid economic growth.At the same time,China has implemented a series of Poverty Alleviation Policies,from the traditional blood transfusion poverty alleviation policy based on transfer payment to the hematopoietic poverty alleviation policy to help the poor expand production.In the past 40 years,the incidence of rural poverty in China has declined dramatically,and the achievements of poverty alleviation have attracted worldwide attention.However,in recent years,China's poverty reduction rate has declined and economic growth has slowed down.However,there are still a large number of poor people in the remote mountainous areas where the development is difficult and the natural conditions are poor.It can be seen that the poverty alleviation work in the later stage of China is still arduous.Reducing rural poverty has become the focus of the party and the people in the process of economic development.Nowadays,China is in the new normal of economy.Urbanization,as the trend and important engine of China's economic development,provides more possibilities for China to realize a well-off society in an all-round way and poverty alleviation.So how will urbanization affect rural poverty?Can we get rid of poverty with the help of urbanization?How to implement urbanization related policies to reduce rural poverty is more effective?The answers to these questions are of great significance to the construction of a well-off society in an all-round way.Based on the above background,this paper thoroughly explores the effect and mechanism of urbanization on poverty reduction in rural areas on the basis of full access to information,reading literature and data collation.First of all,the paper expounds the theory of urbanization and poverty,and then theoretically analyzes the mechanism of urbanization on rural poverty.Then from the micro level,we constructed the basic model of the impact of urbanization on rural household income and expenditure,and on this basis,constructing the estimation equation of the average partial effect of urbanization on rural household income components and rural poverty respectively.Further,we used the rural household data of 2002,2007 and 2013 in China household income survey database(chip)and the mixed regression model and two-stage regression model to demonstrate the rural poverty reduction effect of urbanization in China,the measuring the poverty reduction effect of urbanization and the average partial effect of urbanization on each income component.Finally,based on the data of 21 provinces in China from 2002 to 2013,through co-integration test,fixed effect model estimation and robustness test,we construct the impact model of urbanization on rural poverty from the macro level,and analyze the mechanism of urbanization on rural poverty reduction in China.The results show that,first,urbanization can promote the growth of rural household income,expenditure and the transformation of rural household income structure.The impact of urbanization on the operating income and the average partial effect of rural households are negative,the impact on wage income and property income and the average partial effect are positive,among the impact on transfer income is positive,but the average partial effect is negative.In addition,the education level of the head of household has a positive impact on rural household income.Secondly,urbanization can reduce the probability of rural poverty by promoting the increase of rural household income and consumption.However,with the sharp decline of the incidence of poverty,the effect of urbanization on rural poverty reduction is weakening year by year.Third,urbanization can reduce rural poverty through income effect and transfer effect,in which income effect has a significant effect on poverty reduction in all regions of China.While in the transfer effect,the effect of intra-provincial transfer is significant,but the effect of inter provincial transfer is not significant for regions with different levels of economic development.Based on the above conclusions,we put forward the following countermeasures and suggestions:first,actively promote the process of urbanization,promote the expansion of non-agricultural industries;second,the government should actively encourage the transfer of poor people in the province,and implement differentiated poverty reduction policies for different regions;third,strengthen the construction of infrastructure from which farmers can directly benefit,and increase the investment in education in poor regions.The innovation of this paper is as follows:first,this paper measures the rural poverty reduction effect of urbanization by estimating the average partial effect.Compared with other methods to measure the effect of poverty reduction,the approach can more directly reflect the impact of urbanization on rural poverty.Second,when we analyze the mechanism of urbanization on rural poverty,the income effect and population transfer effect of farmers are introduced.The transfer index is calculated by the temporary population,which is more accurate than the result obtained by using the household registration population.Then dividing the effect of population transfer into two parts:the effect of population transfer within province and the effect of population transfer between provinces,which is helpful for the government to make a more targeted poverty alleviation policy for the local and off-site migration of farmers.Third,when selecting poverty indicators,most scholars use income poverty rate to measure rural poverty,but using income to measure poverty tends to overestimate the poverty rate,so we use expenditure poverty rate to measure rural poverty.