Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2021.1875859
Rural financial development, spatial spillover, and poverty reduction: evidence from China
Xiaoke Zhu
Xueli Chen
Jinyang Cai
Alvydas Balezentis
Ruifa Hu
Dalia Streimikiene
Sažetak
Rural financial development is deemed essential for eliminating
poverty. In China, successive governments have initiated a series
of financial development plans to reduce poverty since the launch
of economic reform in the late 1970s. However, there is a rising
concern about whether financial development can reduce poverty
in China. This study uses a panel dataset of 30 provinces (out of
31) in mainland China from 1997 to 2015 to examine the effect
of rural financial development on poverty reduction. We employ
a spatial panel model to investigate whether rural financial development has a positive spatial spillover effect. Moreover, we use
the instrumental variable method to address the possible bidirectional causal effect between rural financial development and poverty reduction. Our study confirms that rural financial
development does reduce poverty and simultaneously widen the
urban-rural income gap. We further find that rural financial development has a positive spatial spillover effect on poverty alleviation and that the conventional panel model (e.g., fixed effects
method) may underestimate the effect of rural financial development, as it ignores the spatial spillover effect.
Ključne riječi
Financial development; poverty reduction; urbanrural inequality; spatial spillover effect; spatial panel mode
Hrčak ID:
301665
URI
Datum izdavanja:
31.12.2021.
Posjeta: 190 *