Livelihood Disruption and Venture Creation: Entrepreneurship as Technology Adoption A Comparison between Kentucky and Shaanxi Farmers
AbstractIn the US, The Tobacco Transition Payment Program, also called the "tobacco buy-out," helps tobacco quota holders and producers transition to the free market. In China, the transaction of Land Use Rights providing farmers’ ability to buy or sell Land Use Rights has been seriously considered by the Chinese government. The uncertainty in household income and changes in economic environment during the US Tobacco Transition Payment Program and the Chinese Land Use Rights Regime lead many individuals into entrepreneurial activities. Entrepreneurship often means making changes in livelihood activities that involve substantial risks to income. While the rewards may be substantial, transactions costs may make decisions irreversible. This paper draws a comparison between entrepreneurship and technology adoption. Adopting a new production technology also involves substantial risks. The economics of technology adoption is a well developed literature with many accepted and testable models. Most prominent are the theories of learning by using and learning by doing. We review the technology adoption literature, drawing out lessons for entrepreneurship research. We then apply an ‘entrepreneurship as technology adoption’ model to a unique dataset collected in Kentucky, US and in Shaanxi province, China. Using a sample of 702 Kentucky farmers at the time of the buyout and 730 Chinese farmers, we test several of the implications of this model and compare significant results between Kentucky and Shaanxi farmers. This study finds that both farmers in Kentucky and Shaanxi with a strong social network are more likely to become entrepreneurs. Kentucky farmers with low income are more likely to start new businesses. The finding supports the “push” hypothesis as farmers with low income are pushed into starting a new business. The human capital factor is strongly associated with Shaanxi farmer’s entrepreneurial decision.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103928.
Date of creation: 2011
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Farm Management; Research and Development/Tech Change/Emerging Technologies;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-24 (All new papers)
- NEP-ENT-2011-05-24 (Entrepreneurship)
- NEP-TRA-2011-05-24 (Transition Economics)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.