Research On The Impact Of Financial Development In Inner Mongolia On Poverty Alleviation

Since the reform and opening up,poverty alleviation has always been the key content of economic construction.People's living standards have been constantly improved and some achievements have been made in poverty alleviation.Inner Mongolia is located in the northern border of our country.Its geographical conditions and ecological environment are bad,coupled with the traffic block and backward production mode,resulting in severe regional poverty.With the vigorous development of the poverty alleviation work of Inner Mongolia government for many years,the poverty-stricken population in Inner Mongolia has achieved large-scale poverty alleviation.However,by the end of 2020,building a well-off society in an all-round way,and the goal of poverty-stricken population and poverty banner county has not been fully realized,as well as the important issues to be considered to prevent the poverty-stricken population from returning to poverty.As an effective way to promote economic growth and get rid of poverty,the development of financial undertakings in Inner Mongolia provides financial support for the industrial development,infrastructure construction,public product supply and income increase of the poor.Therefore,the study of the impact of the development of Inner Mongolia's financial industry on poverty alleviation can better provide theoretical basis and policy recommendations for the next poverty alleviation work.Based on the financial development theory and poverty theory,this paper first analyzes the direct and indirect mechanism of financial poverty reduction,and clarifies the impact mechanism of financial development on poverty alleviation.Secondly,it introduces the general situation of financial development and poverty in Inner Mongolia.Next,through collecting the annual development data of Inner Mongolia from 1990 to2018,it establishes VAR model for empirical analysis to test the short-term impact of financial development on poverty alleviation in Inner Mongolia.Through the empirical analysis,we can draw the following conclusions: in the long run,the expansion of financial development scale and the improvement of financial efficiency in Inner Mongolia can effectively promote the improvement of poverty,but in the short term,it will have the effect of aggravating poverty.Finally,this paper puts forward relevantpolicy suggestions from the existing problems in the financial development of Inner Mongolia,including improving the availability of financial services for the poor,promoting the sound development of the financial service system,improving the financial ecological environment,etc.,so as to better promote the financial poverty reduction effect.