The Research On Poverty Reduction Effect Of Inclusive Finance In Xiangxi District Of Hunan Province

In 2005,the United Nations formally put forward the concept of inclusive finance.It is mainly to meet the demand for financial services of the poor and low-income groups,so inclusive finance is expected to become an important form and means of poverty reduction in the new era.In March 2014,the People’s Bank of China and other departments jointly issued “the Guiding Opinions on Completely Improving Financial Services for Poverty Alleviation”.The article proposes to accelerate the deepening of rural financial system reform,vigorously develop rural inclusive finance,and promote the full coverage of basic financial services in remote rural areas.This marks that China’s poverty alleviation strategy would begin to change and the work of financial poverty alleviation would enter a new stage.Firstly,this study discusses the mechanism of inclusive finance in poverty alleviation from material capital,human capital and social capital.Then the study focuses on poverty stricken areas,and takes 30 counties or cities in Xiangxi district of Hunan province as the research object from the micro-level.Inclusive financial system is constructed from three dimensions: financial service permeability,financial service availability and financial service utility.The poverty level in Xiangxi district of Hunan province is measured from material capital,human capital and social capital.Finally,selecting the dynamic panel model,and using system GMM estimation method,the poverty reduction effect of inclusive finance is tested.The results show that the development level of inclusive finance in Xiangxi district is generally low,but it shows an increasing trend year by year.There is a positive correlation between the development level of inclusive financial and poverty alleviation.The regression coefficient is 0.256.This shows that the inclusive finance increases one percentage points,poverty will be reduced by 0.256 percentage points.The effect of poverty alleviation is obvious.Then through empirical tests,inclusive finance has significant positive correlation with the degree of poverty expressed by material capital,human capital and social capital respectively.The inclusive finance increases one percentage points,poverty expressed by material capital will be reduced by 0.503 percentage points,poverty expressed by human capital will be reduced by 2.571 percentage points,poverty expressed by social capital will be reduced by 0.138 percentage points.This conclusion is consistent with the theory discussed in the second chapter that inclusive finance can promote poverty alleviation through three mechanisms: physical capital,human capital and social capital.In addition,economic growth has a positive effect on poverty alleviation,while the increase of income distribution gap has a negative effect on poverty alleviation.Finally,according to the above research,we put forward some relevant suggestions to improve the poverty reduction effect of inclusive finance in Xiangxi district.