Research On The Poverty Reduction Of The Rural Micro-finance In China

To improve the situation of poverty and backwardness in rural areas and to alleviate or even eliminate the problem of rural poverty,we must first solve the shortage of funds that restrict the development of rural areas.However,the nature of“capital chasing money” has led various rural financial institutions,including state-owned commercial banks,to withdraw from or withdraw from the rural market,and to move to large cities with more developed economies or coastal cities in the east.As a result,rural areas of financial resources have been scarce.As an important complement to traditional financial institutions or financial resources,microfinance provides various types of financial credit and financial services to poor rural small and micro enterprises and farmers,with small branches in support of agriculture,The development of inclusive finance and supporting rural economic and social development play an important role in rural poverty reduction.This paper focuses on rural micro-finance,on the basis of accurately examining the current situation of the development of rural micro-finance in China and influencing the effect of poverty reduction,we draw lessons from the excellent experience of foreign micro-finance in poverty reduction.The paper puts forward the countermeasures and suggestions to promote the development of rural micro-finance and its effect on poverty reduction in order to provide guidance for the current rural financial system reform and to effectively realize the benign interaction between the development of rural micro-finance and the precise poverty alleviation in rural areas.Firstly,it analyzes the changing trend and spatial difference of poverty reduction in rural areas in China,and analyzes the development course,current situation and existing problems of rural micro-finance in China on the basis of overview of relevant theories.Then,it summarizes the international experience of poverty reduction in rural micro-finance,and draws the enlightenment to China;furthermore,it analyzes the mechanism of poverty reduction effect of rural micro-finance,and build a econometric model to identify the impact of rural micro-finance on poverty alleviation and path mechanism.Finally,it puts forward some countermeasures and suggestions to promote the development of rural micro-finance and its effect on poverty reduction.The main conclusions of this paper are as follows: first,the speed of poverty reduction and the incidence of poverty decrease rapidly in China,and the spatial difference of poverty reduction in rural areas is obvious.Second,the development of rural micro-finance in China has achieved remarkable results,but there are still some problems which can not be ignored,such as the contradiction between supply and demand of rural credit,the serious outflow of rural funds and the obvious shortage of rural informal finance.Thirdly,the poverty reduction effect of rural micro-finance is obvious.Every 1% increase of rural micro-finance development level will effectively reduce the incidence of rural poverty 1.41%,and every 1 unit increase in the efficiency of rural microfinance will effectively alleviate the incidence of rural poverty by 2.27%.Fourth,rural microfinance contributes indirectly to poverty reduction through local economic development,in addition to directly contributing to rural poverty reduction through the provision of savings and creditservices.Fifthly,to promote the development of rural micro-finance and its effect on poverty reduction,we should start from the aspects of widening financing,innovating credit products,optimizing credit management and creating credit environment.