Research On The Poverty Reduction Effect Of Local Fiscal Expenditure And Digital Inclusive Finance In Deeply Impoverished Counties

Local fiscal expenditure has two paths of poverty reduction,direct and indirect.On the one hand,the income of developed regions or wealthy classes can be distributed to backward regions or poor people through transfer payments,supplementing the shortcomings of market regulation,redistributing resources,and narrowing the gap between the rich and the poor.On the other hand,by improving infrastructure and investment environment,promoting regional economic development can help reduce poverty in rural areas.In recent years,the amount of financial funds allocated by the state has continued to increase,but the effectiveness of poverty governance has been increasingly questioned,and high-quality economic growth has encountered challenges.Since the emergence of the concept of digital financial inclusion,it has attracted great attention from the government and the public due to its superiority that is different from the traditional financial model.Based on the principle of combining the theoretical framework with the actual situation,this paper takes 44 deeply impoverished counties in the six provinces of Jiangxi,Hunan,Hubei,Henan,Shanxi,and central Anhui as the research subjects,and analyzes the poverty reduction effect of local fiscal expenditure and digital inclusive finance.Research.This paper firstly sorts out the domestic and foreign literature on multi-dimensional poverty measurement,the relationship between local fiscal expenditure,digital inclusive finance and poverty alleviation,as well as the research methods of mediating effect and moderating effect,and provides theoretical support for subsequent analysis.Then,the mechanism of local fiscal expenditure and digital inclusive finance’s role in poverty alleviation is discussed,hypotheses are proposed and corresponding models are constructed,and per capita GDP,medical and educational resources availability are selected,and a multi-dimensional poverty index is constructed through the coefficient of variation method to measure county poverty.degree,and then select the relevant data from 2014 to 2020 for empirical analysis.The test results are as follows.First,it proves that the increase in local fiscal expenditure is conducive to poverty alleviation and can also narrow the income gap between urban and rural areas;second,it is found that the development of digital inclusive finance will alleviate regional poverty by adjusting the urban-rural income gap;third,digital inclusion Finance plays a positive moderating role between local fiscal expenditure and the urban-rural income gap,that is,when the development of digital inclusive finance is high,the positive mediating effect of local fiscal expenditure on multidimensional poverty through the urban-rural income gap is significant,while digital inclusive finance has a significant positive mediating effect on multidimensional poverty.When the level of development is low,the intermediary effect is not significant;fourth,it is found that the poverty reduction effect of local fiscal expenditure and digital inclusive finance in Shanxi Province lags behind other provinces in the central region,and the development of digital inclusive finance in Hubei Province has significantly positively adjusted local governments.The realization of the poverty reduction effect of fiscal expenditure.Based on the above findings,this paper believes that the development of digital inclusive finance can effectively make up for the deficiencies in the path of poverty reduction in local fiscal expenditures,and is conducive to improving the efficiency of the use of fiscal funds,in line with the policy goal of high-quality economic growth,and has practical significance for policy formulation and financial innovation.