Research On The Impact Of Inclusive Financial Development On Poverty Reduction In China

Poverty has a long history and is a hot issue in the international community.Since the reform and opening up in 1978,China has made great achievements in poverty reduction.The incidence of poverty has dropped from 97.5% in 1978 to 0.6%in 2019.Unfortunately,there are still 5.51 million poor people in China who have not yet been lifted out of poverty,so it is difficult to eliminate poverty fundamentally.As a key and difficult area for China to get rid of poverty in an all-round way in the new era,the problem of poverty in the western region should not be underestimated.As the core of modern economy,finance plays an important role in promoting poverty reduction.However,many low-income people,small and micro enterprises and other vulnerable groups are excluded from the traditional financial institutions,which is likely to lead to poverty due to the difficulty in obtaining effective financial services.Compared with traditional finance,inclusive finance has been committed to building an inclusive financial system covering the whole people since it was put forward,which has a far-reaching impact on the current poverty reduction in China.However,whether the development of Inclusive Finance can effectively promote poverty reduction,and in what way,it is worth in-depth thinking and exploration.Based on the basic research ideas of combining theory and empirical research,this article comprehensively and in-depth explores the impact of the development of inclusive finance in the western region on poverty reduction by comprehensively using various analytical methods such as literature research.First of all,in the introduction part,it systematically combs the research literature about the impact of Inclusive Financial Development on poverty reduction at home and abroad;secondly,it briefly describes the relevant theories of inclusive financial development and poverty reduction,and analyzes the impact mechanism of Inclusive Financial Development on poverty reduction from two aspects of direct and indirect impact;thirdly,from the perspective of reality,it elaborates the development of Inclusive Finance in western region of China.In addition,in order to verify the impact of Inclusive Financial Development on poverty reduction,this paper constructs an inclusive financial comprehensive index based on the three dimensions of financial coverage,service availability and actual utility rate,by using the financial development indicators of 12 provinces,cities and autonomous regions in western region of China from 2005 to 2018.And the panel data of poverty indicators,select thecorresponding variables to build an individual fixed effect model for empirical test,the empirical results show that inclusive financial development has a positive role in poverty reduction,can effectively promote poverty reduction.Finally,according to the results of the empirical analysis and the actual situation of each region,this paper puts forward the corresponding policy recommendations from three aspects,including the implementation of differentiated inclusive financial policies.