Analysis of poverty alleviation through rural finance in Heilongjiang Province and some suggestions

Poverty alleviation through rural finance breaks the traditional economic model and becomes an innovative and effective way to alleviate poverty in China’s rural areas. In addition, rural finance also maximizes the poverty alleviation effects of the Government supporting fund. Based on the 2016 rural financial poverty related data of 28 counties in Heilongjiang Province and applying the factor analysis method, this paper empirically analyzed the poverty alleviation effects through rural finance. Results show that the rural financial poverty alleviation efficiency, the endogenous financial resources of rural areas, and the magnitude of the rural financial poverty alleviation scale account for 94.50% of the total influencing factors, which are the main factors that affect the levels of rural financial poverty alleviation in Heilongjiang Province. This research also finds that the ratio of poor counties with high level of financial poverty alleviation is 10.71%, and the ratio of poor counties with low level of financial poverty alleviation is 67.86%, showing a significant difference among different counties in Heilongjiang Province. To fully achieve the effects of rural financial poverty alleviation in Heilongjiang Province, this paper suggests to integrate the following five aspects together: the object of rural financial poverty alleviation, repayment ability, the coverage of financial poverty in rural areas, rural credit risk management, and the supervision of rural financial poverty alleviation.