A Study On The Impact Of Financial Availability And Economic Opportunities On Rural Residents’ Income

2020 is the year when China will win the battle to build a moderately prosperous society in all respects and fight poverty alleviation.In 2015,the Politburo of the CPC Central Committee passed the "Decision on Winning the Fight against Poverty".Poverty alleviation has become a key goal during the Chinese “13th FiveYear Plan”.Until November 2020,all 832 impoverished counties across the country were lifted out of poverty.The goal and task of poverty alleviation have been completed.The poverty problem that has plagued Chinese for millennia has been solved.This achievement not only promotes the improvement of the Chinese governance system,but is also a vivid portrayal of the "four self-confidence" of socialism with Chinese characteristics,which embodies Chinese institutional advantages.The Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China pointed out that "developing inclusive finance",using the principle of "everyone equal" in inclusive finance,so that everyone can obtain financial service opportunities.The "China Rural Poverty Alleviation and Development Outline(2011-2020)" made it clear that the Party Central Committee attaches great importance to financial poverty alleviation.The goal of rural inclusive finance is to solve the problem of rural financial exclusion,and to promote rural residents to get rid of poverty using "financial leveraging".Access to Finance is the most iconic feature of inclusive finance,and there is an interaction between Access to Finance and rural residents’ income.On the one hand,the increase in Access to Finance has brought more convenient and efficient financial services to rural residents,thereby promoting farmers’ income growth.On the other hand,as rural residents’ income and financial literacy improve,they will also be encouraged to participate more actively.Rural financial market.Judging from experience,poverty alleviation methods that directly increase Access to Finance will not only fail to effectively increase farmers’ income but will instead bring about the phenomenon of “elite capture”.Financial poverty alleviation should not only be limited to the function of "blood transfusion",it should stimulate the endogenous growth momentum of rural residents,that is,improve the farmers’ economic opportunities,and turn "blood transfusion" into "hematopoiesis" to fundamentally change the status quo of rural poverty.Based on the research on the impact of Access to Finance and economic opportunity on rural residents’ income at home and abroad,this article uses quantile regression to study the impact of Access to Finance on rural residents’ income based on the 2017 China Household Finance Survey(CHFS)data.Secondly,it introduces the analysis of economic opportunity variables to analyze and compare its moderating and mediating effects,and finally analyzes the heterogeneity of financial poverty alleviation effects between non-poor households and poor households according to poverty types.The main research conclusions of this paper are as follows:(1)Access to Finance can effectively promote the income level of rural residents and has obvious heterogeneity.The regression coefficient between Access to Finance and rural residents’ income is significantly positive and shows an increasing trend with the income levels increase.The income-increasing effect of financial availability is heterogeneous,and the Access to Finance of groups with different income levels increases their income.The effects are different,and the effect of increasing financial availability of non-poor households is more obvious than that of poor households.(2)Economic opportunities can effectively drive the income growth of rural residents.After introducing the economic opportunity moderator variable,it is found that the regression coefficient between the moderator variable individual economic opportunity and the explained variable rural residents’ income is significantly positive,and it shows a decreasing trend with the increase of income level.The incomeincreasing effects of individual economic opportunities are also heterogeneous.The income-increasing effects of individual economic opportunities are different for groups with different income levels.The income-increasing effect of non-poor households is more obvious than that of poor households with low and middle-income groups,while non-poor households with high-income groups The income-increasing effect of individual economic opportunities is lower than that of high income groups of poor households.(3)Individual economic opportunities have a moderating effect on the income-increasing effect of financial availability,while macroeconomic opportunities have a partial mediating effect on the income-increasing effect of Access to Finance.By introducing the interaction term between individual economic opportunity and Access to Finance,the coefficient is significantly negative,which means that there is a "substitution effect" between individual economic opportunity and Access to Finance,and the two are competing to promote the increase of farmers’ income.Through the mediation effect test,it is found that there is a partial mediation effect of macroeconomic opportunities on the income-increasing effect of Access to Finance.