Poverty Alleviation: Tourism Industry Investment, Economic Development and Industrial Structure Optimization in Southwest China
##Abstract##
Based on the relevant panel data of five provinces, municipalities and autonomous regions in Southwest China from 2000 to 2016, this review introduces a PVAR model to study the dynamic relationship between tourism industry investment, economic development and industrial structure optimization in Southwest China. It is found that there is a close relationship between tourism industry investment, economic development and industrial structure optimization in Southwest China during the observation period. From GMM estimation results, we can see that the three factors promote each other in the current period; from impulse response and variance decomposition, we can see that the growth of tourism industry investment mainly depends on itself and has a low impact on industrial structure optimization and economic development; Although the influence of economic development and industrial structure optimization mainly comes from the fluctuation of the industry itself, the mutual influence between economic development and industrial structure optimization shows a trend of rapid and steady growth.
Background
After the reform and opening up, China’s economy has developed rapidly. With the rapid development of the economy in eastern China, the economic development gap between the eastern and western regions is gradually expanding. Solving the economic development problem in Southwest China has become the key work of poverty alleviation. Through the study of poverty-stricken areas in Southwest China, it is found that complex terrain, inconvenient transportation, low education level of population and fragile ecological environment are the causes of poverty in Southwest China for a long time. According to the actual situation of Southwest China, this paper mainly solves these problems from the following three aspects: improving the transportation system; paying attention to the education construction of Southwest China; developing eco-tourism.
Under the concept of natural regionalization, Southwest China includes Chongqing, Sichuan, Guizhou, Yunnan and Tibet. Among the 95 poverty-stricken counties announced by the state in 2020, the southwest region accounts for 54. It can be said that more than half of the national poverty-stricken counties are distributed in the southwest region. Therefore, the problem of poverty alleviation in the southwest region has naturally become the key work of the national poverty alleviation. To achieve targeted poverty alleviation, we should first understand the various causes of poverty in Southwest China, and put forward more targeted measures according to the actual situation, so as to promote the rapid economic development of Southwest China.There are abundant geological conditions in Southwest China, which gradually ascend rom the basin to the plateau, creating complex and unique climatic conditions and topography, giving birth to a lot of magnificent and treacherous natural landscapes.
Introduction
“Efficiency” is the ratio of input resources and output utility in production. In today’s period of rapid social development, the pursuit of high efficiency makes the resource allocation and technology utilization level of industrial sustainable development of great significance. And tourism efficiency means that in a specific range, the unit production factor input can maximize the output in the process of tourism development, which is the nature of tourism and all related industries to maximize the total surplus. High efficiency means that the input resources are fully utilized, while low efficiency is the opposite. There are many reasons for the low efficiency of tourism, such as the inefficient allocation of resources caused by the untimely input and utilization of resources in areas with sufficient resources, and the difficulty in improving the efficiency caused by insufficient resources or old technology.
Poverty In China
In today’s China, poverty mainly refers to the rural poor, because decades of economic growth has basically eliminated urban poverty. It is well known that China has made great progress in poverty reduction in the past three decades. According to world bank data, more than 850 million Chinese people have been lifted out of extreme poverty; China’s poverty rate has dropped from 88% in 1981 to 0.7% in 2015, measured by the percentage of people living in the equivalent of $1.90 or less per day at purchasing price parity in 2011.
Since the far-reaching economic reform began in the late 1970s, economic growth has promoted a significant increase in per capita income, helping more people out of poverty than anywhere else in the world: China’s per capita income increased fivefold between 1990 and 2000, from $200 to $1000. From 2000 to 2010, the per capita income increased at the same rate, from US $1000 to US $5000, making China one of the middle-income countries. From 1990 to 2005, China’s poverty reduction achievements accounted for more than three-quarters of the global poverty reduction achievements, which is also an important factor for the world to achieve the Millennium Development Goals of the United Nations and divide the poor into two. This incredible success is due to the rapid expansion of the labor market driven by long-term economic growth, as well as a series of government transfers, such as the introduction of urban subsidies and rural pensions. The World Bank Group recommends that the proportion of people living below the international poverty line of $1.9 (2011 purchasing power parity) be reduced to 0.7% in 2015, and the proportion of people living below the international poverty line of $3.2 (2011 purchasing power parity) be reduced to 7% in 2015. At the end of 2018, China’s population below the national poverty line (at constant prices in 2010) was 16.6 million, accounting for 1.7% of the population at that time. On November 23, 2020, China announced the nationwide elimination of absolute poverty, raising all citizens to 2300 yuan per year (the poverty line of less than US $1 per day).
Current Issues In Southwest China
Southwest China mainly includes the Sichuan Basin, Yunnan Guizhou Plateau, the south of Qinghai Tibet Plateau and the west of Guangdong and Guangxi hills. The complex topography has always restricted the traffic development in Southwest China. Some poor areas are too remote or even isolated from the world because of their geographical location, and the blocked traffic can not meet the needs of economic development and production activities in Southwest China. Therefore, most of the investment funds and advanced technologies are concentrated in the eastern region where the transportation is convenient and the infrastructure is perfect. The communication between the southwest region and the outside world is difficult, and it is difficult to introduce funds and technologies, which widens the gap between the southwest region and the eastern region.
Education plays a particularly important role in promoting economic development. The poverty problem in Southwest China has been restricting the development of education. The lack of education resources makes the education rate and education level of the population in Southwest China low. At the same time, poor counties invest a lot of financial resources in education, and the material foundation for the development of the county will become weaker, it is difficult to attract talents to promote the rapid development of the county’s economy. With the rapid development of the economy, the problem of poverty can not be solved, and eventually fall into the dead circle of mutual restriction between economic development and education development.
By analyzing the geographical location and natural environment of the population distribution in the poverty-stricken areas in Southwest China, we can find that most of the poverty-stricken counties in Southwest China are located in areas with poor natural environment, and the population growth rate in these areas is often at a high level. Population growth is too fast, coupled with the backward infrastructure, often at the expense of the environment to obtain economic development, the contradiction between man and nature is serious, these areas are very easy to fall into the ecological environment and poverty cycle.
Poverty Alleviation In Southwest China
In the variables of family characteristics, the degree of poverty and the growth of family income significantly affect the poor households’ recognition of poverty alleviation. The results show that the deeper the degree of poverty, the lower the recognition of poverty alleviation. When the deep poverty households set up files and cards, there are many difficulties in their families, such as labor shortage, housing insecurity, patients looking down on the disease and so on. Due to the lack of labor force in their families, it is difficult for them to rely on labor skills training and other help measures to solve their poverty problems; some poor households misunderstand the Poverty Alleviation Policies and think that the problems that the government should help solve have not been solved in the end, so they show dissatisfaction, leading to their low recognition of poverty alleviation. The more income growth, the higher recognition of poverty alleviation.
The effect of industrial poverty alleviation policy significantly affects the poor people’s recognition of poverty alleviation. The more obvious the effect of industrial poverty alleviation policy on family support, the higher the recognition of poverty alleviation. Industrial poverty alleviation is a direct and effective measure which is widely used in various regions. The poor people have broadened their access to information and technology by obtaining subsidies from the government’s industrial Poverty Alleviation Policies, or developing industries under the leadership of leading enterprises and professional cooperatives. In many dimensions, such as market participation and development opportunities, the poor people’s ability to share the fruits of economic development has been significantly improved, thus greatly improving the poor people’s recognition of poverty alleviation. The effect of employment poverty alleviation policy significantly affects the poor people’s recognition of poverty alleviation. Poverty alleviation through employment is an important way for poor households to get rid of poverty and become rich. Governments at all levels have organized and implemented skills poverty alleviation actions, mobilized vocational training schools and enterprises to carry out various forms of practical technical training for poor households, improved their human capital level, and realized the double improvement of self-development ability and income increasing ability. At the same time, with the help of the employment poverty alleviation policy, the poor groups obtain stable employment opportunities through various forms, such as industry absorbing employment, public welfare jobs and entrepreneurship driving employment. The effect of family assistance is very obvious, which improves their recognition of poverty alleviation. The poor people with obvious effect of financial poverty alleviation policy on family support have high recognition of poverty alleviation. The issuance of mortgage free, guarantee free and government interest subsidized poverty alleviation micro credit loans has solved the financial problem of the industrial development of the poor people who have the ability to work, ideas and projects, and helped the poor people achieve stable income increase and poverty alleviation through industrial development. The living standards of the poor people have improved significantly, and their recognition is naturally high.
From the perspective of social support characteristic variables, the degree of government support, the degree of assistance of the responsible person, and the quality of the cadres of the two village committees have a significant impact on the recognition of poverty alleviation. Government support has a significant positive impact on the recognition of poverty alleviation. As an important supplier of poverty alleviation resources, the more funds, materials, technology and other support the government provides, the more favorable it is for the poor people to improve their recognition of poverty alleviation. There is a positive correlation between the degree of support and the recognition of poverty alleviation. The results show that the more times the person in charge of helping enters the household, the more obvious the effect of helping poor families is, and the higher the recognition of poverty alleviation is. It is reflected in two aspects: one is to help the responsible person to enter the house regularly, which is conducive to publicizing the Poverty Alleviation Policies to the poor people, and through regular exchanges with them, it can enhance the confidence and motivation of the poor people to get rid of poverty to a certain extent. Second, by carefully analyzing the causes of poverty, and according to the actual situation of the poor families, the person in charge of the assistance should make accurate policies, and do a good job in the village assistance work with heart, emotion and strength, which not only helps the poor families to achieve the standard of “two don’t worry, Three Guarantees”, but also helps the poor people to achieve personal development. The work ability and work style of the two village committees have improved significantly, and the poor households have a high recognition of poverty alleviation. As the specific executors of the government’s policies, the cadres of the two village committees play an important role in the work of poverty alleviation and development. Their working ability and style greatly affect the recognition of poverty alleviation by poor households.
Interpreting PVAR Method into Southwest China’s tourism industry
Taking Southwest China as a whole as the research object, this paper selects the panel data of Southwest China from 2000 to 2016 to establish the panel vector autoregressive model (PVAR) model, combined with impulse response and variance decomposition to explore the dynamic relationship among economic development, tourism industry investment and industrial structure optimization, in order to get an objective judgment and provide reference for the formulation of public policy in Southwest China.
As the three core departments of the tourism industry, tourist hotels, scenic spots and travel agencies are the core carriers of regional tourism reception and the key areas of tourism investment, which gather the capital, talent, technology, brand and other resources of regional tourism investment.The most direct manifestation of the optimization and upgrading of industrial structure is that the proportion of the primary industry in the GDP has decreased, while the proportion of the secondary and tertiary industries has increased. Considering that the overall industrial structure optimization of Southwest China is at a low level, and the industrial structure of Tibet Autonomous Region, Guizhou Province and Yunnan Province is gradually transforming from the primary industry to the secondary and tertiary industries, the proportion of non-agricultural output value to GDP is adopted to reflect the industrial structure optimization level. Considering the reliability and availability of data, GDP is selected as the index to measure the regional economic development. The relevant data are from the statistical yearbook, statistical bulletin of national economic and social development, government work report and China Tourism Statistical Yearbook of the provinces in Southwest China. For missing and abnormal values, multiple interpolation methods and regression interpolation methods are adopted to improve the data.
Panel Data Vector Autoregression, after Holta Eakin combined the VAR model with panel data, it was first put forward in 1988. After the development of many scholars, it has become a very mature model. Compared with an ordinary VAR model, the PVAR model requires less time series length.
GMM Method
In Econometrics and statistics, generalized method of moment (GMM) is a general method to estimate the parameters of statistical models. Generally, it is suitable for semi parametric models, in which the parameters of interest are finite dimensional, and the complete shape of the data distribution function may be unknown, so the maximum likelihood estimation is not suitable. This method requires that a certain number of torque conditions be specified for the model. These moment conditions are functions of model parameters and data, so their expected values are zero at the true values of parameters. Then, GMM method minimizes a norm of sample mean under moment condition, so it can be considered as a special case of minimum distance estimation.
Suppose that the available data consists of T observations {YT}t = 1 Each observation YT is an n-dimensional multivariate random variable. We assume that the data comes from a certain statistical model and define it as an unknown parameter θ∈Θ. The goal of the estimation problem is to find the true value of the parameter, or at least a fairly close estimate.
The general assumption of GMM is that the data YT is generated by a weakly stationary ergodic stochastic process. (the case of independent identically distributed variable YT is a special case of this case.)
In this way, in southwest China, inclusive finance can increase the income of specific groups (poverty alleviation objects) through the availability of Finance and reducing the cost of financial products and services, promoting finance to ease credit constraints and play a role in preventing risk shocks. The main mechanisms are as follows: firstly, by increasing the coverage of commercial banks and ATMs, we can improve the availability of financial services for the poor. Secondly, strengthen the policy guidance of commercial banks, and enhance the ability of financial product innovation, greatly alleviate the credit constraints of poor groups and poor areas.
Conclusion
By building a diversified poverty alleviation industrial system, we can ensure that the poor households increase their income and become rich. Gradually realize the transformation of industrial poverty alleviation from government led to government led and market led, and promote the development of poverty alleviation industries to the direction of scientific and technological innovation and variety diversification. We should clearly implement the responsibilities and rights of investment in industrial poverty alleviation projects, and explore ways to change resources into assets, funds into shares, and farmers into shareholders The “three changes” reform is related to the input-output mechanism of the government, enterprises and farmers, the implementation of technical services in industrial poverty alleviation projects, the implementation of micro credit financial services to households, the effective protection of farmers’ rights and interests, the effective mobilization of farmers’ enthusiasm and participation in poverty alleviation industries, and the protection of farmers’ endogenous motivation to get rid of poverty and become rich. In the process of industrial poverty alleviation, the government should establish and improve the market risk prevention and control mechanism for the collective economy of poor households and poor villages as soon as possible, summarize and promote the experience of “precision poverty alleviation insurance”, so as to ensure that the poverty alleviation industry will not suffer unbearable losses due to market fluctuations and sudden public health risks, as well as the resulting large-scale return to poverty.
Optimize the distribution structure of tourism investment and improve the efficiency of tourism investment. In the new era of tourism capital driven development, tourism investment is of great significance for the development of the tourism industry, and the development of tourism industry can promote economic growth and industrial structure optimization. Therefore, according to theory, tourism industry investment should become a positive force for economic development and industrial structure optimization. However, from the analysis results, it can be seen that tourism industry investment in Southwest China has great influence on economic development and industrial structure optimization The promotion effect of industrial structure optimization is small, and the theoretical results do not appear. It shows that the investment efficiency of the tourism industry in Southwest China is low, that is, the efficiency of transforming tourism investment into economic benefits is low. Therefore, it needs the government to give full play to its subjective initiative, allocate all kinds of social investment and government investment more reasonably, integrate the tourism industry with low investment efficiency, and improve the efficiency of tourism investment.
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