Abstract: Fiscal support agriculture and urbanization in the developing countries are recognized two paths to poverty reduction. Explaining who is more conducive to rural poverty reduction is the key to understanding the mystery of China's rapid poverty alleviation. This article explores the impact of fiscal support agriculture and urbanization on poverty reduction in rural areas through the provincial dynamic panel data and static panel data models in China, The study found:China's rural poverty reduction thanks to the interactive tool synergies financial support for agriculture and urbanization strategy, However, the process of urbanization is more effective in reducing poverty in rural areas. Investment in poverty alleviation,employment urbanization and spatial urbanization in financial support for agriculture are more conducive to rural areas in the east. The comprehensive development expenditure and urbanization of the population are more effective in rural poverty reduction in the central and western regions. Although the Rural poverty has "ratchet effect" obviously, However, with the increase of fiscal decentralization, Agricultural operation scale and rural medical education and technology, the incidence of rural poverty will be suppressed accordingly.

Key words: fiscal support agriculture, urbanization, rural poverty reduction, panel data