IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v13y2023i9p1766-d1233830.html
   My bibliography  Save this article

Influencing Mechanism of Rural Households’ Livelihood Capital on Entrepreneurial Behavior: Evidence from the CFPS

Author

Listed:
  • Fang Wang

    (School of Business, Zhengzhou University, Zhengzhou 450001, China)

  • Jingyi Mao

    (School of Business, Zhengzhou University, Zhengzhou 450001, China)

  • Yafu Liu

    (School of Economics and Trade, Henan Finance University, Zhengzhou 451464, China)

  • Qihua Cai

    (School of Business, Zhengzhou University, Zhengzhou 450001, China)

Abstract

The livelihood capital of rural households is an essential basis for their selection of livelihood strategy. This paper uses rural household data from the 2018 CFPS to construct a “hexagonal” framework for the analysis of livelihood capital. Natural capital, material capital, financial capital, social capital, human capital, psychological capital, and total livelihood capital are measured using entropy weight method. The paper uses logit and tobit models to analyze how livelihood capital affects rural households’ entrepreneurship. Finally, the heterogeneous impact of livelihood capital on rural households’ entrepreneurial behavior is discussed from the view of household head gender, household education level, and regional differences. The results show that rural households’ livelihood capital distribution in each dimension is uneven and the difference is great. Rural households’ capital of livelihood and finance have positive effects on their entrepreneurial behavior. Heterogeneity analysis shows that the increase in livelihood capital impacts entrepreneurship in female-headed households more positively and significantly. Livelihood capital can significantly promote the entrepreneurial behavior of rural households with lower education levels. The impact of livelihood capital on rural household entrepreneurship presents a decreasing distribution pattern from east to the middle to west. The results of the robustness test show that the conclusion of the positive impact of livelihood capital on rural household entrepreneurship is reliable. The main conclusions provide guidance and a foundation for further optimizing rural household entrepreneurship policies and promoting rural household entrepreneurship.

Suggested Citation

  • Fang Wang & Jingyi Mao & Yafu Liu & Qihua Cai, 2023. "Influencing Mechanism of Rural Households’ Livelihood Capital on Entrepreneurial Behavior: Evidence from the CFPS," Agriculture, MDPI, vol. 13(9), pages 1-22, September.
    • Handle: RePEc:gam:jagris:v:13:y:2023:i:9:p:1766-:d:1233830
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/13/9/1766/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2077-0472/13/9/1766/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966.
    2. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
    3. Solomon Zena Walelign & Mariève Pouliot & Helle Overgaard Larsen & Carsten Smith-Hall, 2017. "Combining Household Income and Asset Data to Identify Livelihood Strategies and Their Dynamics," Journal of Development Studies, Taylor & Francis Journals, vol. 53(6), pages 769-787, June.
    4. Williams, Trenton Alma & Zhao, Eric Yanfei & Sonenshein, Scott & Ucbasaran, Deniz & George, Gerard, 2021. "Breaking boundaries to creatively generate value: The role of resourcefulness in entrepreneurship," Journal of Business Venturing, Elsevier, vol. 36(5).
    5. Ferrol-Schulte, Daniella & Wolff, Matthias & Ferse, Sebastian & Glaser, Marion, 2013. "Sustainable Livelihoods Approach in tropical coastal and marine social–ecological systems: A review," Marine Policy, Elsevier, vol. 42(C), pages 253-258.
    6. Wagner, Caroline S. & Leydesdorff, Loet, 2005. "Network structure, self-organization, and the growth of international collaboration in science," Research Policy, Elsevier, vol. 34(10), pages 1608-1618, December.
    7. Howard Van Auken & Fred L. Fry & Paul Stephens, 2006. "The Influence Of Role Models On Entrepreneurial Intentions," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 157-167.
    8. Tesfaye, Yemiru & Roos, Anders & Campbell, Bruce M. & Bohlin, Folke, 2011. "Livelihood strategies and the role of forest income in participatory-managed forests of Dodola area in the bale highlands, southern Ethiopia," Forest Policy and Economics, Elsevier, vol. 13(4), pages 258-265, April.
    9. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302, May.
    10. Rahut, Dil Bahadur & Scharf, Maja Micevska, 2012. "Livelihood diversification strategies in the Himalayas," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(4), pages 1-25, December.
    11. Wassink, Joshua, 2020. "International migration experience and entrepreneurship: Evidence from Mexico," World Development, Elsevier, vol. 136(C).
    12. Felipe Balmaceda, 2018. "Entrepreneurship: skills and financing," Small Business Economics, Springer, vol. 50(4), pages 871-886, April.
    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. Tiange Sun & Jing Zhou, 2023. "Impact of Livelihood Capital on the Adoption Behaviour of Integrated Agricultural Services among Farmers," Sustainability, MDPI, vol. 15(24), pages 1-16, December.

    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. Solomon Zena Walelign & Mariève Pouliot & Helle Overgaard Larsen & Carsten Smith-Hall, 2015. "A novel approach to dynamic livelihood clustering: Empirical evidence from Nepal," IFRO Working Paper 2015/09, University of Copenhagen, Department of Food and Resource Economics.
    2. Misganaw Teshager Abeje & Atsushi Tsunekawa & Enyew Adgo & Nigussie Haregeweyn & Zerihun Nigussie & Zemen Ayalew & Asres Elias & Dessalegn Molla & Daregot Berihun, 2019. "Exploring Drivers of Livelihood Diversification and Its Effect on Adoption of Sustainable Land Management Practices in the Upper Blue Nile Basin, Ethiopia," Sustainability, MDPI, vol. 11(10), pages 1-23, May.
    3. Shanta Paudel Khatiwada & Wei Deng & Bikash Paudel & Janak Raj Khatiwada & Jifei Zhang & Yi Su, 2017. "Household Livelihood Strategies and Implication for Poverty Reduction in Rural Areas of Central Nepal," Sustainability, MDPI, vol. 9(4), pages 1-20, April.
    4. Ashish Aman Sinha & Hari Charan Behera & Ajit Kumar Behura & Amiya Kumar Sahoo & Utpal Kumar De, 2021. "Livelihood Assets and Income Generating Activities: A Comparative Analysis in the Scheduled and Non-Scheduled Areas of Jharkhand," Indian Journal of Human Development, , vol. 15(3), pages 443-467, December.
    5. Nielsen, Martin Reinhardt & Pouliot, Mariève & Kim Bakkegaard, Riyong, 2012. "Combining income and assets measures to include the transitory nature of poverty in assessments of forest dependence: Evidence from the Democratic Republic of Congo," Ecological Economics, Elsevier, vol. 78(C), pages 37-46.
    6. H.M. Tuihedur Rahman & Gordon M. Hickey, 2020. "An Analytical Framework for Assessing Context-Specific Rural Livelihood Vulnerability," Sustainability, MDPI, vol. 12(14), pages 1-26, July.
    7. Estifanos, Tafesse Kefyalew & Polyakov, Maksym & Pandit, Ram & Hailu, Atakelty & Burton, Michael, 2020. "The impact of protected areas on the rural households’ incomes in Ethiopia," Land Use Policy, Elsevier, vol. 91(C).
    8. Mausumi Mahapatro & Deborah Johnston, 2020. "Imperfection Measures and the Production of Poverty: A Case Study of the Use of the Asset Index in Bangladesh," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(2), pages 513-531, November.
    9. Benyong Wei & Guiwu Su & Yingkui Li & Yuling Ma, 2019. "Livelihood Strategies of Rural Households in Ning’er Earthquake-Stricken Areas, Yunnan Province, China," Sustainability, MDPI, vol. 11(21), pages 1-18, October.
    10. Stefan Dercon, 2014. "Is Green Growth Good for the Poor?," The World Bank Research Observer, World Bank, vol. 29(2), pages 163-185.
    11. Rahwa Kidane & Martin Prowse & Andreas Neergaard, 2019. "Bespoke Adaptation in Rural Africa? An Asset-Based Approach from Southern Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 413-432, July.
    12. Helmy, Imane, 2020. "Livelihood Diversification Strategies: Resisting Vulnerability in Egypt," GLO Discussion Paper Series 441, Global Labor Organization (GLO).
    13. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    14. Beytollah Mahmoudi & Eric Zenner & Davood Mafi-Gholami & Fatemeh Eshaghi, 2023. "Livelihood Analysis and a New Inferential Model for Development of Forest-Dependent Rural Communities," Sustainability, MDPI, vol. 15(11), pages 1-15, June.
    15. Aniseh S. Bro, 2020. "Climate Change Adaptation, Food Security, and Attitudes toward Risk among Smallholder Coffee Farmers in Nicaragua," Sustainability, MDPI, vol. 12(17), pages 1-17, August.
    16. Asfaw, Solomon & McCarthy, Nancy & Paolantonio, Adriana & Cavatassi, Romina & Amare, Mulubrhan & Lipper, Leslie, 2015. "Diversification, Climate Risk and Vulnerability to Poverty: Evidence from Rural Malawi," 2015 Conference, August 9-14, 2015, Milan, Italy 230216, International Association of Agricultural Economists.
    17. Longjunjiang Huang & Cong Liao & Xuan Guo & Yanlin Liu & Xiaojin Liu, 2023. "Analysis of the Impact of Livelihood Capital on Livelihood Strategies of Leased-In Farmland Households: A Case Study of Jiangxi Province, China," Sustainability, MDPI, vol. 15(13), pages 1-29, June.
    18. Rui Sun & Jianing Mi & Shu Cao & Tianyi Zhang, 2021. "Trends and Determinants of Income-Oriented Livelihood Transitions in Rural China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 601-624, June.
    19. Megbowon Ebenezer Toyin, 2018. "Multidimensional Poverty Analysis of Urban and Rural Households in South Africa," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 63(1), pages 3-19, April.
    20. Jiao, Xi & Walelign, Solomon Zena & Nielsen, Martin Reinhardt & Smith-Hall, Carsten, 2019. "Protected areas, household environmental incomes and well-being in the Greater Serengeti-Mara Ecosystem," Forest Policy and Economics, Elsevier, vol. 106(C), pages 1-1.

    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:gam:jagris:v:13:y:2023:i:9:p:1766-:d:1233830. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.