Determinants of financial poverty alleviation efficiency: Evidence from Henan, China

Abstract

Poverty alleviation is a common cause for all human beings. The purpose of this study is to evaluate the efficiency of financial poverty alleviation in 18 cities in Henan, China, and to explore the factors affecting the efficiency of financial poverty alleviation, so as to contribute new knowledge to the cause of poverty alleviation. Based on the relevant data of 18 cities in Henan, using output-oriented DEA model and Tobit regression model with bootstrap method, this study evaluates the efficiency of financial poverty alleviation in various cities in Henan, and explores the determinants of the efficiency of financial poverty alleviation. The results show that the overall poverty alleviation efficiency of Henan is high, and the financial poverty alleviation efficiencies of different cities show distinct heterogeneities. The efficiencies of financial poverty alleviation in Zhengzhou and Luoyang are 1, and there are different spaces for improvement in the efficiency of financial poverty alleviation in other cities. Financial subsidies are the most important positive factors affecting the efficiency of financial poverty alleviation. For every 1% increase in the value of financial subsidies, the poverty alleviation efficiency will increase by 0.213%. The urban-rural dualistic economic structure is negatively correlated with the efficiency of financial poverty alleviation. Every 1% increase in the value of the urban-rural dualistic economic structure will reduce the poverty alleviation efficiency by 0.11%. Industrial structure is positively related to the efficiency of financial poverty alleviation. For every 1% increase in the value of the industrial structure, the poverty alleviation efficiency will increase by 0.072%. The formulation of financial poverty alleviation policies in various regions should be combined with their own characteristics, and promote the efficiency of financial poverty alleviation by strengthening the advantages and making up for the deficiencies.