Empirical Research on Poverty Reduction Effect Based on Factor Analysis

Abstract

This paper quantitatively analyzes the poverty reduction effect in hunan province from three aspects of economic growth, financial support and industrial development. First, use of factor analysis on the independent variables for dimension reduction, extracting a factor for regional development level factor, the region's economic growth is expressed by the regional development level factors, financial support and industry development. Secondly, poverty incidence rate was selected as poverty reduction effect measurement to build an exponential regression model of regional development level and poverty incidence rate. Finally, it is concluded that regional development level has certain effect on poverty reduction in hunan province.