IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i6p2487-d335646.html
   My bibliography  Save this article

Understanding the Role of Rural Poor’s Endogenous Impetus in Poverty Reduction: Evidence from China

Author

Listed:
  • Jing Liu

    (School of Economics and Management, China University of Geosciences (Wuhan), Wuhan 430074, China)

  • Fubin Huang

    (School of Economics and Management, China University of Geosciences (Wuhan), Wuhan 430074, China)

  • Zihan Wang

    (School of Economics and Management, China University of Geosciences (Wuhan), Wuhan 430074, China)

  • Chuanmin Shuai

    (School of Economics and Management, China University of Geosciences (Wuhan), Wuhan 430074, China)

  • Jiaxin Li

    (School of Economics and Management, China University of Geosciences (Wuhan), Wuhan 430074, China)

Abstract

Motivating the endogenous impetus of the poor to eradicate poverty is an endogenous dilemma that is difficult to solve using the current external poverty alleviation model. In this paper, based on the field survey data of 1112 poor rural households in China, we examine the impact of the poor’s endogenous impetus on their poverty reduction. Firstly, we identify two different components of endogenous impetus: thought impetus and behavior impetus. Secondly, the poverty reduction (livelihood status) of farmers was used as an endogenous variable to construct a partial least squares model to verify our explanation of the role of endogenous impetus of the poor in poverty reduction. The results indicate that (1) both thought impetus and behavior impetus have a positive impact on the livelihood status of the poor; (2) the human capital, physical capital, and social capital of the poor have a positive relationship with the two components of endogenous impetus; and (3) endogenous impetus plays a mediation role between livelihood capital and livelihood status. As expected, human and physical capital have a positive and significant relationship with poverty reduction. The important enlightenment of this study is that it is very important to motivate the poor’s endogenous impetus of escaping poverty in addition to improving external conditions such as livelihood capital owned by farmers in an effort to realize sustainable poverty reduction.

Suggested Citation

  • Jing Liu & Fubin Huang & Zihan Wang & Chuanmin Shuai & Jiaxin Li, 2020. "Understanding the Role of Rural Poor’s Endogenous Impetus in Poverty Reduction: Evidence from China," Sustainability, MDPI, Open Access Journal, vol. 12(6), pages 1-16, March.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2487-:d:335646
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/6/2487/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/12/6/2487/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fang SU & Udoy SAIKIA & Iain HAY, 2018. "Relationships between Livelihood Risks and Livelihood Capitals: A Case Study in Shiyang River Basin, China," Sustainability, MDPI, Open Access Journal, vol. 10(2), pages 1-20, February.
    2. repec:dau:papers:123456789/5126 is not listed on IDEAS
    3. Yuki Tanaka & Alistair Munro, 2014. "Regional Variation in Risk and Time Preferences: Evidence from a Large-scale Field Experiment in Rural Uganda," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 23(1), pages 151-187.
    4. Travis J. Lybbert & Bruce Wydick, 2018. "Poverty, Aspirations, and the Economics of Hope," Economic Development and Cultural Change, University of Chicago Press, vol. 66(4), pages 709-753.
    5. Galiani, Sebastian & Schargrodsky, Ernesto, 2010. "Property rights for the poor: Effects of land titling," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 700-729, October.
    6. Xiaolan Wang & Li Peng & Dingde Xu & Xuxi Wang, 2019. "Sensitivity of Rural Households’ Livelihood Strategies to Livelihood Capital in Poor Mountainous Areas: An Empirical Analysis in the Upper Reaches of the Min River, China," Sustainability, MDPI, Open Access Journal, vol. 11(8), pages 1-16, April.
    7. Kosec, Katrina & Mo, Cecilia Hyunjung, 2017. "Aspirations and the Role of Social Protection: Evidence from a Natural Disaster in Rural Pakistan," World Development, Elsevier, vol. 97(C), pages 49-66.
    8. Chivers, David, 2017. "Success, survive or escape? Aspirations and poverty traps," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 116-132.
    9. Jie Cai & Ting Wang & Xianli Xia & Yazhi Chen & Hongqiang Lv & Ni Li, 2019. "Analysis on the Choice of Livelihood Strategy for Peasant Households Renting out Farmland: Evidence from Western Poverty-Stricken Areas in China," Sustainability, MDPI, Open Access Journal, vol. 11(5), pages 1-13, March.
    10. James Copestake & Laura Camfield, 2010. "Measuring Multidimensional Aspiration Gaps: A Means to Understanding Cultural Aspects of Poverty," Development Policy Review, Overseas Development Institute, vol. 28(5), pages 617-633, September.
    11. Sabina Alkire, 2005. "Subjective Quantitative Studies of Human Agency," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 74(1), pages 217-260, October.
    12. Michelle Adato & Michael Carter & Julian May, 2006. "Exploring poverty traps and social exclusion in South Africa using qualitative and quantitative data," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 226-247.
    13. Janzen, Sarah A. & Magnan, Nicholas & Sharma, Sudhindra & Thompson, William M., 2017. "Aspirations failure and formation in rural Nepal," Journal of Economic Behavior & Organization, Elsevier, vol. 139(C), pages 1-25.
    14. Patricio S. Dalton & Sayantan Ghosal & Anandi Mani, 2016. "Poverty and Aspirations Failure," Economic Journal, Royal Economic Society, vol. 126(590), pages 165-188, February.
    15. Jean-Paul Azam & Flore Gubert, 2006. "Migrants' Remittances and the Household in Africa: A Review of Evidence," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(2), pages 426-462, December.
    16. Divya Gopal & Harini Nagendra, 2014. "Vegetation in Bangalore’s Slums: Boosting Livelihoods, Well-Being and Social Capital," Sustainability, MDPI, Open Access Journal, vol. 6(5), pages 1-15, April.
    17. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    18. Laura B. Rawlings, 2005. "Evaluating the Impact of Conditional Cash Transfer Programs," World Bank Research Observer, World Bank Group, vol. 20(1), pages 29-55.
    19. Allison, Edward H. & Horemans, Benoit, 2006. "Putting the principles of the Sustainable Livelihoods Approach into fisheries development policy and practice," Marine Policy, Elsevier, vol. 30(6), pages 757-766, November.
    20. Zhenshan Yang, 2019. "Threshold Effect of Poverty Alleviation Funds on Human Capital Accumulation: A Case Study of Impoverished Counties in China," Sustainability, MDPI, Open Access Journal, vol. 11(3), pages 1-12, February.
    21. Bebbington, Anthony, 1999. "Capitals and Capabilities: A Framework for Analyzing Peasant Viability, Rural Livelihoods and Poverty," World Development, Elsevier, vol. 27(12), pages 2021-2044, December.
    22. Xiaoying Wu & Xinhua Qi & Shan Yang & Chao Ye & Biao Sun, 2019. "Research on the Intergenerational Transmission of Poverty in Rural China Based on Sustainable Livelihood Analysis Framework: A Case Study of Six Poverty-Stricken Counties," Sustainability, MDPI, Open Access Journal, vol. 11(8), pages 1-22, April.
    23. Masanjala, Winford, 2007. "The poverty-HIV/AIDS nexus in Africa: A livelihood approach," Social Science & Medicine, Elsevier, vol. 64(5), pages 1032-1041, March.
    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. Liu, Jing & Huang, Fubin & Wang, Zihan & Shuai, Chuanmin, 2021. "What is the anti-poverty effect of solar PV poverty alleviation projects? Evidence from rural China," Energy, Elsevier, vol. 218(C).

    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. Ross, Phillip H., 2019. "Occupation aspirations, education investment, and cognitive outcomes: Evidence from Indian adolescents," World Development, Elsevier, vol. 123(C), pages 1-1.
    2. Dalton,Patricio S. & Ruschenpohler,Julius & Zia,Bilal Husnain, 2018. "Determinants and dynamics of business aspirations : evidence from small-scale entrepreneurs in an emerging market," Policy Research Working Paper Series 8400, The World Bank.
    3. Dalton, Patricio & Rüschenpöhler, Julius & Zia, Bilal, 2018. "Aspirations of Small-scale Entrepreneurs : Evidence from Urban Retailers in Indonesia," Other publications TiSEM bc573b53-32a8-497b-a67d-d, Tilburg University, School of Economics and Management.
    4. Kai Mausch & Dave Harris & Javier Revilla Diez, 2021. "Rural Aspirations: Reflections for Development Planning, Design and Localized Effects," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(4), pages 795-808, August.
    5. Moya, Andrés & Carter, Michael R., 2019. "Violence and the formation of hopelessness: Evidence from internally displaced persons in Colombia," World Development, Elsevier, vol. 113(C), pages 100-115.
    6. Sung Soo Lim, 2020. "The Effects of Chronic Illness on Aspirations and Subjective Wellbeing," Journal of Happiness Studies, Springer, vol. 21(5), pages 1771-1793, June.
    7. Garcia, Adriana & Lensink, Robert & Voors, Maarten, 2020. "Does microcredit increase aspirational hope? Evidence from a group lending scheme in Sierra Leone," World Development, Elsevier, vol. 128(C).
    8. Ross, Phillip H. & Glewwe, Paul & Prudencio, Daniel & Wydick, Bruce, 2021. "Developing educational and vocational aspirations through international child sponsorship: Evidence from Kenya, Indonesia, and Mexico," World Development, Elsevier, vol. 140(C).
    9. Jianjun Huai, 2016. "Role of Livelihood Capital in Reducing Climatic Vulnerability: Insights of Australian Wheat from 1990–2010," PLOS ONE, Public Library of Science, vol. 11(3), pages 1-18, March.
    10. Lubega, Patrick & Nakakawa, Frances & Narciso, Gaia & Newman, Carol & Kaaya, Archileo N. & Kityo, Cissy & Tumuhimbise, Gaston A., 2021. "Body and mind: Experimental evidence from women living with HIV," Journal of Development Economics, Elsevier, vol. 150(C).
    11. Reyes, René & Nelson, Harry & Zerriffi, Hisham, 2021. "How do decision makers´ ethnicity and religion influence the use of forests? Evidence from Chile," Forest Policy and Economics, Elsevier, vol. 128(C).
    12. Tabe-Ojong, Martin Paul Jr & Heckelei, Thomas & Baylis, Kathy, 2020. "Collective action and smallholder rural households: Implications for income and asset aspirations," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304580, Agricultural and Applied Economics Association.
    13. Visser, Martine & Jumare, Hafsah & Brick, Kerri, 2020. "Risk preferences and poverty traps in the uptake of credit and insurance amongst small-scale farmers in South Africa," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 826-836.
    14. Laura Camfield & Awae Masae & J. McGregor & Buapun Promphaking, 2013. "Cultures of Aspiration and Poverty? Aspirational Inequalities in Northeast and Southern Thailand," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(3), pages 1049-1072, December.
    15. Martin Paul Jr. Tabe-Ojong & Thomas Heckelei & Kathy Baylis, 2021. "Aspiration Formation and Ecological Shocks in Rural Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(4), pages 833-860, August.
    16. Chivers, David, 2017. "Success, survive or escape? Aspirations and poverty traps," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 116-132.
    17. Muhammad Masud & Fatimah Kari & Siti Yahaya & Abul Al-Amin, 2016. "Livelihood Assets and Vulnerability Context of Marine Park Community Development in Malaysia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(3), pages 771-792, February.
    18. Holden , Stein, 2014. "Risky Choices of Poor People: Comparing Risk Preference Elicitation Approaches in Field Experiments," CLTS Working Papers 10/14, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 10 Oct 2019.
    19. Britta Höllermann & Kristian Näschen & Naswiru Tibanyendela & Julius Kwesiga & Mariele Evers, 2021. "Dynamics of Human–Water Interactions in the Kilombero Valley, Tanzania: Insights from Farmers’ Aspirations and Decisions in an Uncertain Environment," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(4), pages 980-999, August.
    20. Dalton, P.S. & Ghosal, S., 2010. "Behavioral Decisions and Welfare (Replaces CentER DP 2010-22)," Discussion Paper 2010-143, Tilburg University, Center for Economic Research.

    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:jsusta:v:12:y:2020:i:6:p:2487-:d:335646. See general 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: . General contact details of provider: https://www.mdpi.com/ .

    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: XML Conversion Team (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 hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.