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Rural Finance and Poverty

Author: TanLingLi
Tutor: DingZhiGuo
School: Jilin University
Course: Finance
Keywords: Rural finance Poverty Reduction Fixed effects vector decomposition model
CLC: F832
Type: Master's thesis
Year: 2011
Downloads: 106
Quote: 0
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Abstract


Rural finance and poverty : empirical studies of poverty based on the fixed effects vector decomposition model has been sought to overcome the problems of mankind . Since 1978 , China has made in reducing poverty huge achievement , but the urban-rural income gap caused by the urban-rural dual structure , as well as the socio-economic development process unfair income distribution , leading to the slow growth of the rural poor income . Very little , the rural poor to share the fruits of decades of China's rapid economic development . How, then, let the poor income increase it? Obviously, relying on government the metastatic spending and subsidies are not the long term, poor economic growth in order to cure recipe . Poor people how to develop their own economy ? Startup capital is a bottleneck restricting their development . To overcome this bottleneck , rural financial development is the key . This article is starting from the theoretical study of the relationship between financial development and poverty reduction , empirical research to China's rural areas , for example , between the rural finance development and poverty reduction , the analysis of the development of rural financial ability to play an active role to improve poverty . Rural finance development of both rural poverty through the promotion of socio-economic development plays an indirect role , can directly promote rural economic development which role in poverty , using 2000-2008 data of 23 provinces across the country , the establishment of the fixed effects vector decomposition model to clarify the relations between the rural finance and poverty . The results show that , the development of rural finance significant direct and indirect able to alleviate the poverty, rural finance development process instability poverty was not significant . Pursuant to which the results of this article , that China's current poverty alleviation should take measures to improve the rural financial system, ease credit constraints as well as the establishment of a comprehensive system of agricultural insurance ,

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CLC: > Economic > Fiscal, monetary > Finance, banking > China's financial,banking
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