Abstract: Solving the multidimensional relative poverty problem and reducing the vulnerability of poverty is the key to ensuring the sustainability of poverty reduction achievements in China. Using the 2015-2019 China Household Finance Survey (CHFS) data, this paper constructs rural inclusive finance index, rural multidimensional relative poverty index, and rural multidimensional relative poverty vulnerability index, and uses the bivariate probit model to analyze the impact of rural inclusive finance on multidimensional relative poverty and poverty vulnerability. The findings are as follows: The important non-economic factors that affect rural families’ the mild and deep multidimensional relative poverty are the farmers’ limited access to information and education, and the high proportion of families with deep multidimensional relative poverty vulnerability is the main risk of causing and returning to poverty. Although there is a regional imbalance in the development level of rural inclusive finance, rural inclusive finance can effectively alleviate the multidimensional relative poverty and mild poverty vulnerability of rural families, and the alleviation of deep poverty vulnerability still needs to be combined with other means. By reducing credit constraints, rural inclusive finance indirectly promotes rural families to get rid of multidimensional relative poverty and reduces poverty vulnerability.

Keywords: Rural inclusive finance; Multidimensional relative poverty; Poverty vulnerability; Credit constraints; Bivariate probit model