Village mutual fund is an important financial initiative policy to reduce the financial gap between supply and demand and to alleviate poverty in poor areas. In this study,we employed the propensity score matching( P SM) to overcome the self-selection bias problem and the endogeneity problem.Based on the survey data of 655 households in 37 villages of 13 counties in Ningxia,we empirically evaluated the effect of mutual funds on agricultural production investment and income. The results showed that the mutual funds taking advantage of the cooperative financial system increased the poverty-stressed peasant household credit opportunities; participation in mutual funds enabled the farmers investment of agricultural production to be significantly increased by 101 %,agricultural income to be significantly increased by 97 %,and the per capita net income to be significantly increased by 13 %. Accordingly we put forward the suggestions of giving full play to the role of the financial capital in the financial capital leverage and amplification for poverty alleviation and further promoting the mutual assistance funds and local advantageous industries.
Journal of Nanjing Agricultural University（Social Science Edition）