How Capital Flow Can Affect the Development of Rural Industry
Using the unbalanced panel data of 722 counties lifted out of poverty and 1058 non-poor counties from 2006 to 2019,this study constructs the rural industry revitalization index and investigates the influence and mechanisms of capital flow on the index.The results show that capital inflow can signifi-cantly promote rural industry revitalization,and the promotion effect in counties lifted out of poverty is stronger than that in non-poor counties.The mechanism test shows that capital inflow mainly plays a pro-moting role by driving"material flow","technology flow"and"talent flow",which can help realize the modernization of rural production system,management system and industrial system,and finally promote rural industry revitalization.The development of new rural industries and new business form,the inclusive development of finance and the implementation of targeted poverty alleviation policy can all improve the promotion effect of capital inflow on rural industry revitalization.
capital flowrural industry revitalizationcounties lifted out of povertyworking mecha-nism