IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v106y2019ic5.html
   My bibliography  Save this article

Social network effect on income structure of SLCP participants: Evidence from Baitoutan Village, China

Author

Listed:
  • Lan, Jing
  • Liu, Zhen

Abstract

Using a unique dataset covering all the households in Baitoutan village of Sichuan province, China, this paper attempts to open the “black box” related to the social network effect. It is to understand the Sloping Land Conversion Program (hereafter SLCP) participants' labor reallocation decisions and income structure through the identification of the types of social network effects——peer or complementary. The results confirm the tendency of households to form social networks with their relatives and acquaintances within the village; these networks influence households' labor reallocation, which is revealed in their complementary income structure. This implies that there exists cooperation in terms of labor reallocation among households within a social network, as the share of agricultural income has a negative correlation with that of a household's acquaintances. In addition, a households' social position within the network is taken into account regarding their labor reallocation decision making. Models with network centrality (degree and eigenvector) are introduced for analysis. The results confirm that there is a cooperation in labor allocation within the network, resulting in a complementary type of social network effect in the village.

Suggested Citation

  • Lan, Jing & Liu, Zhen, 2019. "Social network effect on income structure of SLCP participants: Evidence from Baitoutan Village, China," Forest Policy and Economics, Elsevier, vol. 106(C), pages 1-1.
    • Handle: RePEc:eee:forpol:v:106:y:2019:i:c:5
    DOI: 10.1016/j.forpol.2019.101958
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934118305240
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2019.101958?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-533, May.
    2. Marcel Fafchamps, 2006. "Development and social capital," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1180-1198.
    3. Bramoullé, Yann & Djebbari, Habiba & Fortin, Bernard, 2009. "Identification of peer effects through social networks," Journal of Econometrics, Elsevier, vol. 150(1), pages 41-55, May.
    4. Paul Goldsmith-Pinkham & Guido W. Imbens, 2013. "Social Networks and the Identification of Peer Effects," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 31(3), pages 253-264, July.
    5. Kelejian, Harry H. & Prucha, Ingmar R., 2010. "Specification and estimation of spatial autoregressive models with autoregressive and heteroskedastic disturbances," Journal of Econometrics, Elsevier, vol. 157(1), pages 53-67, July.
    6. Barrett, Christopher B. & Reardon, Thomas, 2000. "Asset, Activity, And Income Diversification Among African Agriculturalists: Some Practical Issues," Working Papers 14734, Cornell University, Department of Applied Economics and Management.
    7. Ethan Cohen‐Cole & Xiaodong Liu & Yves Zenou, 2018. "Multivariate choices and identification of social interactions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(2), pages 165-178, March.
    8. Liang, Yicheng & Li, Shuzhuo & Feldman, Marcus W. & Daily, Gretchen C., 2012. "Does household composition matter? The impact of the Grain for Green Program on rural livelihoods in China," Ecological Economics, Elsevier, vol. 75(C), pages 152-160.
    9. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 115-136, Summer.
    10. Liu, Zhen & Lan, Jing, 2015. "The Sloping Land Conversion Program in China: Effect on the Livelihood Diversification of Rural Households," World Development, Elsevier, vol. 70(C), pages 147-161.
    11. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, vol. 71(2), pages 261-287, August.
    12. Marcel Fafchamps & Agnes R. Quisumbing, 1999. "Human Capital, Productivity, and Labor Allocation in Rural Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 369-406.
    13. Elena G. Irwin, 2002. "Interacting agents, spatial externalities and the evolution of residential land use patterns," Journal of Economic Geography, Oxford University Press, vol. 2(1), pages 31-54, January.
    14. Kelly, Peter & Huo, Xuexi, 2013. "Land Retirement and Nonfarm Labor Market Participation: An Analysis of China’s Sloping Land Conversion Program," World Development, Elsevier, vol. 48(C), pages 156-169.
    15. de Janvry, Alain & Sadoulet, Elisabeth & Zhu, Nong, 2005. "The Role of Non-Farm Incomes in Reducing Rural Poverty and Inequality in China," CUDARE Working Papers 25043, University of California, Berkeley, Department of Agricultural and Resource Economics.
    16. Lee, Lung-fei, 2007. "Identification and estimation of econometric models with group interactions, contextual factors and fixed effects," Journal of Econometrics, Elsevier, vol. 140(2), pages 333-374, October.
    17. Gabriel Leite Mota & Paulo Trigo Pereira, 2008. "Happiness, Economic Well-being, Social Capital and the Quality of Institutions," Working Papers Department of Economics 2008/40, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    18. Jikun Huang & Liangliang Gao & Scott Rozelle, 2012. "The effect of off‐farm employment on the decisions of households to rent out and rent in cultivated land in China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 4(1), pages 5-17, January.
    19. Narayan, Deepa & Pritchett, Lant, 1999. "Cents and Sociability: Household Income and Social Capital in Rural Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 871-897, July.
    20. Hiwatari, Masato, 2016. "Social networks and migration decisions: The influence of peer effects in rural households in Central Asia," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1115-1131.
    21. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    22. Jing Zhou & Yundong Tu & Yuxin Chen & Hansheng Wang, 2017. "Estimating Spatial Autocorrelation With Sampled Network Data," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 35(1), pages 130-138, January.
    23. Lindon J. Robison & Robert J. Myers & Marcelo E. Siles, 2002. "Social Capital and the Terms of Trade for Farmland," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 44-58.
    24. Kaivan Munshi, 2003. "Networks in the Modern Economy: Mexican Migrants in the U. S. Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 549-599.
    25. Emi Uchida & Scott Rozelle & Jintao Xu, 2009. "Conservation Payments, Liquidity Constraints, and Off-Farm Labor: Impact of the Grain-for-Green Program on Rural Households in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 70-86.
    26. Johny, Judit & Wichmann, Bruno & Swallow, Brent M., 2017. "Characterizing social networks and their effects on income diversification in rural Kerala, India," World Development, Elsevier, vol. 94(C), pages 375-392.
    27. Butts, Carter T., 2008. "Social Network Analysis with sna," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 24(i06).
    28. Zhen Liu & Arne Henningsen, 2016. "The effects of China's Sloping Land Conversion Program on agricultural households," Agricultural Economics, International Association of Agricultural Economists, vol. 47(3), pages 295-307, May.
    29. Xu, Jintao & Yin, Runsheng & Li, Zhou & Liu, Can, 2006. "China's ecological rehabilitation: Unprecedented efforts, dramatic impacts, and requisite policies," Ecological Economics, Elsevier, vol. 57(4), pages 595-607, June.
    30. Robison, Lindon J. & Siles, Marcelo E. & Jin, Songqing, 2011. "Social capital and the distribution of household income in the United States: 1980, 1990, and 2000," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(5), pages 538-547.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Giefer, Madeline M. & An, Li, 2022. "Divergent impacts of the grain to green program, landholdings, and demographic factors on livelihood diversification in rural China," World Development, Elsevier, vol. 156(C).
    2. Ruishi Si & Yumeng Yao & Xueqian Zhang & Qian Lu & Noshaba Aziz, 2022. "Exploring the Role of Contiguous Farmland Cultivation and Adoption of No-Tillage Technology in Improving Transferees’ Income Structure: Evidence from China," Land, MDPI, vol. 11(4), pages 1-25, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gibbons, Steve & Overman, Henry G. & Patacchini, Eleonora, 2015. "Spatial Methods," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 115-168, Elsevier.
    2. Wang, Ying & Zhang, Qi & Bilsborrow, Richard & Tao, Shiqi & Chen, Xiaodong & Sullivan-Wiley, Kira & Huang, Qingfeng & Li, Jiangfeng & Song, Conghe, 2020. "Effects of payments for ecosystem services programs in China on rural household labor allocation and land use: Identifying complex pathways," Land Use Policy, Elsevier, vol. 99(C).
    3. Hiwatari, Masato, 2016. "Social networks and migration decisions: The influence of peer effects in rural households in Central Asia," Journal of Comparative Economics, Elsevier, vol. 44(4), pages 1115-1131.
    4. Kuersteiner, Guido M. & Prucha, Ingmar R. & Zeng, Ying, 2023. "Efficient peer effects estimators with group effects," Journal of Econometrics, Elsevier, vol. 235(2), pages 2155-2194.
    5. Yann Bramoullé & Habiba Djebbari & Bernard Fortin, 2020. "Peer Effects in Networks: A Survey," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 603-629, August.
    6. Steven N. Durlauf & Yannis M. Ioannides, 2010. "Social Interactions," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 451-478, September.
    7. Johny, Judit & Wichmann, Bruno & Swallow, Brent M., 2017. "Characterizing social networks and their effects on income diversification in rural Kerala, India," World Development, Elsevier, vol. 94(C), pages 375-392.
    8. Esteves, Rui & Geisler Mesevage, Gabriel, 2019. "Social Networks in Economic History: Opportunities and Challenges," Explorations in Economic History, Elsevier, vol. 74(C).
    9. Chih‐Sheng Hsieh & Lung‐Fei Lee & Vincent Boucher, 2020. "Specification and estimation of network formation and network interaction models with the exponential probability distribution," Quantitative Economics, Econometric Society, vol. 11(4), pages 1349-1390, November.
    10. Áureo de Paula, 2015. "Econometrics of network models," CeMMAP working papers CWP52/15, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    11. Ida Johnsson & Hyungsik Roger Moon, 2017. "Estimation of Peer Effects in Endogenous Social Networks: Control Function Approach," Papers 1709.10024, arXiv.org, revised Jul 2019.
    12. William C. Horrace & Hyunseok Jung & Shane Sanders, 2022. "Network Competition and Team Chemistry in the NBA," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 40(1), pages 35-49, January.
    13. Topa, Giorgio & Zenou, Yves, 2015. "Neighborhood and Network Effects," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 561-624, Elsevier.
    14. Liu, Xiaodong & Prucha, Ingmar R., 2018. "A robust test for network generated dependence," Journal of Econometrics, Elsevier, vol. 207(1), pages 92-113.
    15. Bet Caeyers & Marcel Fafchamps, 2016. "Exclusion Bias in the Estimation of Peer Effects," NBER Working Papers 22565, National Bureau of Economic Research, Inc.
    16. Konda, Bruhan & González‐Sauri, Mario & Cowan, Robin & Yashodha, Yashodha & Chellattan Veettil, Prakashan, 2021. "Social networks and agricultural performance: A multiplex analysis of interactions among Indian rice farmers," MERIT Working Papers 2021-030, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    17. Christian Helmers & Manasa Patnam, 2014. "Does the rotten child spoil his companion? Spatial peer effects among children in rural India," Quantitative Economics, Econometric Society, vol. 5, pages 67-121, March.
    18. Chuanmin Zhao & Xi Qu, 2022. "Social networks and internal migration in China: A spatial autoregressive model," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 1132-1163, May.
    19. Giefer, Madeline M. & An, Li, 2022. "Divergent impacts of the grain to green program, landholdings, and demographic factors on livelihood diversification in rural China," World Development, Elsevier, vol. 156(C).
    20. Bai, Jushan & Li, Kunpeng, 2021. "Dynamic spatial panel data models with common shocks," Journal of Econometrics, Elsevier, vol. 224(1), pages 134-160.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:106:y:2019:i:c:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.