Research On The Poverty Alleviation Effect Of Inclusive Finance In Henan Province

Poverty is a historical problem faced by countries in the world in the process of economic development,and poverty eradication is the common goal of human society.Because capital has always been characterized by dislike the poor and love the rich,under the traditional financial model,financial exclusion has appeared.Some disadvantaged groups,such as poor groups,low-income groups,and small and micro enterprises,have difficulty in obtaining financial services and are excluded from the financial system.Inclusive finance is inclusive,and its essence is to allow more financial service demanders to obtain financial services at a lower cost.Therefore,inclusive finance is regarded as an effective poverty alleviation method by many countries,especially some developing countries.Based on the existing research results of scholars at home and abroad,this paper uses the panel data of cities in Henan Province from 2007 to 2018 to empirically analyze the poverty reduction effect of inclusive finance in Henan Province.The existing literature is summarized from three aspects: the connotation of inclusive finance,the measurement of inclusive finance and the poverty reduction effect of inclusive finance.On the basis of related theories,the mechanism of poverty alleviation by inclusive finance is analyzed.The mechanism of poverty alleviation by inclusive finance includes direct mechanism and indirect mechanism: the direct mechanism is mainly through direct access to poor groups,low-income groups,small and micro enterprises,etc.Vulnerable groups provide financial services such as savings,credit and insurance to achieve poverty alleviation;indirect mechanisms mainly achieve poverty alleviation through economic growth and income distribution.Based on the actual situation of the development of inclusive finance in Henan Province,this paper selects eleven indicators from the two dimensions of the availability of financial services and the usability of financial services,and establishes an evaluation index system for inclusive finance.On this basis,through The index was constructed to measure the inclusive finance index of 18 cities in Henan Province from 2007 to 2018.The calculation results show that the level of inclusive finance development in Henan province's cities is increasing year by year.On the whole,the level of inclusive finance development is still at At a lower level,Zhengzhou,as the provincial capital,has the highest level of inclusive finance development,and it is much higher than other cities.On the basis of theoretical analysis and inclusive financial index measurement,this paper uses a fixed effect model to perform an empirical regression of the panel data of 18 cities in Henan Province from 2007 to 2018.The regression results show that the level of inclusive financial development and economic Both growth and income distribution can promote poverty alleviation.This article further tests the indirect mechanism of inclusive finance to alleviate poverty through empirical analysis.From the regression results,we can see that the development of inclusive finance can effectively promote economic growth,but it has widened the income distribution gap.Therefore,inclusive finance has been verified through the indirect mechanism of economic growth to alleviate poverty,but the income distribution mechanism has not been verified.Finally,this article puts forward relevant policy recommendations based on the research conclusions.We must vigorously develop inclusive finance,improve the inclusive financial system,strengthen financial infrastructure construction and financial product innovation,increase the establishment of financial institutions,expand the number of financial practitioners,and actively Promote the concept of inclusive finance to better provide financial services to disadvantaged groups such as poor groups,low-income groups,small and micro enterprises,etc.;considering the regional imbalance in the development of inclusive finance in Henan Province,measures should be adapted to local conditions and based on actual conditions in different regions,Formulate reasonable policies to optimize the allocation of financial resources;improve the legal and regulatory system of inclusive finance,strengthen the supervision of financial institutions,and ensure the healthy and sustainable development of inclusive finance;in addition,increase investment in education and actively optimize the industry Structure to better provide support for the poverty alleviation and rural revitalization in Henan Province.