Abstract: Based on China Household Finance Survey(CHFS)data in 2013,this paper uses the method of propensity score matching(PSM) to study the impact of financial inclusion on the poverty of peasant households from the state of poverty,poverty gap and poverty severity.The results show that financial inclusion can significantly reduce the poverty of peasant households.From a regional perspective,the effect of financial inclusion on poverty reduction in the western region is more obvious than in the eastern and middle regions.Further mechanism analysis shows that financial inclusion can reduce the poverty of peasant households by the family entrepreneurship and educational human capital promotion.

Key words: financial inclusion, poverty of peasant households, poverty reduction effect, PSM