Study of the causes of poverty in the construction of New Countryside based on transaction cost theory

In the context of the construction of New Countryside, the efforts in poverty alleviation and development are further increasing. However, the regional poverty in rural areas, returning to poverty and other issues still arise from time to time. Based on the status of Laiyuan County, Hebei Province, this paper carries on the field research, analyzes of the basic characteristics of poverty-stricken areas, and points out that farmers´ transaction costs are too high when participating in market transactions due to the economic condition and institutional constraints, which leads to the problems that social division of labor can not be effectively achieved and farmers can not enjoy the results of economic development. On that basis, it explores the countermeasures.