Abstract: The influence mechanism of resource endowment and market demand on the choice of poverty alleviation industry is analyzed. Taking Qichun county of Hubei province as an example, the poverty alleviation effect of Chinese herbal medicine industry is analyzed in the concentrated contiguous areas of Dabie mountains. It is found that resource endowment can increase the comparative advantage of regional poverty alleviation industries, but it is also easy to fall into the “resource curse” and “poverty trap”. The choice of poverty alleviation industry also needs to consider market demand. The Chinese herbal medicine industry has a good market demand, and the Chinese herbal medicine industry in Qichun county also has a good resource endowment, and has also achieved certain results in industrial poverty alleviation, but there are also lags in infrastructure construction and the promotion of enterprises to farmers, the simplification of sales channels and so on. Finally, it puts forward suggestions on strengthening the infrastructure construction, giving play to the leading role of leading enterprises and brand development.

Key words: characteristic industry poverty alleviation, market demand, resource endowment, Chinese herbal medicine industry