Financial Development and Poverty Reduction—An Empirical Analysis Based on Panel Data

Abstract

This paper analyzes the relationship between financial development efficiency, financial development scale and poverty reduction in ethnic areas. The study found that the scale of financial development is positively correlated with poverty reduction, while financial development efficiency is negatively correlated. Economic growth, industrial structure, urbanization levels, fixed asset investment and poverty alleviation are significantly positively correlated. Financial institutions are advised to adjust their business models, innovate financial products, and increase support for regional leading industries and advantageous industries.