Abstract：This paper firstly elucidates the poverty reduction mechanism of rural financial inclusion development. Then it uses the interprovincial panel data from 2007 to 2016 to analyze the threshold from the aspects of development depth, spatial breadth and channel dimension and empirically test of the threshold effect, spatial spillover effect and channel effect of inclusive financial poverty alleviation, respectively. The results show that from the threshold and space dimension, as the level of rural economic development increases, the inhibitory effect of inclusive financial development on rural poverty shows increasing marginal benefits. Besides, the spatial spillover effect is significant as well. From the channel dimension, the direct and indirect channels of poverty reduction exist at the same time. As for the direct path, the availability channel plays a major role, while the poverty alleviation effect of service quality has not yet been significantly demonstrated. As to the indirect path, the economic growth channel and the income distribution channel of financial inclusion have both been verified.

Keyword：Financial inclusion; Poverty alleviation; Threshold effect; Spatial spillover effect; Channel effect;