Finance Accessibility,Economic Opportunity and Poverty Reduction

On Data of Sichuan Concentrated Destitute Poverty Areas


2017-09-08 12:00

Shan Depeng,Wang Ying
Finance and Trade Research

Professor Li HouqiangAbstract: Using threshold panel model on credit constraint and economic opportunity,this paper makes an empirical study of the role of financial development and economic opportunity on poverty reduction based on data of Sichuan concentrated destitute poverty areas from the view of endogenous credit demand.The result shows that finance development and finance accessibility have significant positive effect on income improvement and are not obviously beneficial to the poor,and economic opportunity has significant positive effect on per capita net income improvement and poverty reduction.Poverty people are lack of economic opportunity which can restrain credit demand. So enhancing rural economic opportunity is a better poverty reduction target than finance development in the context of constructing all-well society.Finance development should improve rural economic opportunity and capacity of poverty people to increase the matchup of finance demand and supply.
Key words: finance development; finance availability; economic opportunity; poverty reduction
The Chinese version appeared in Finance and Trade Research, 2017(04).



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