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The impact of livelihood capital on sustainable livelihood capacity of farmers: evidence from Yunnan Province, China

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  • Yueyue He
  • Wenhui Li

Abstract

The quality and quantity of livelihood capital are crucial pathways to promote sustainable development in rural areas and enhance the quality of life for farmers. Based on on-site survey data from 612 households in four counties, including Yuanyang County in Yunnan Province, this study utilizes a multiple linear regression model to empirically analyse the impact of livelihood capital on farmers’ sustainable livelihood capabilities. The results indicate that livelihood capital is an effective means to enhance farmers’ sustainable livelihood capabilities. Natural capital, physical capital, human capital, financial capital, and social capital all exert significant positive influences on farmers’ sustainable livelihood capabilities, with regression coefficients of 0.211, 0.144, 0.315, 0.152, and 0.237, respectively. Additionally, the research reveals that livelihood risks play a significant mediating role between livelihood capital and farmers’ sustainable livelihood capabilities. This study provides important insights for formulating comprehensive rural development policies and offering targeted support measures.

Suggested Citation

  • Yueyue He & Wenhui Li, 2025. "The impact of livelihood capital on sustainable livelihood capacity of farmers: evidence from Yunnan Province, China," Applied Economics Letters, Taylor & Francis Journals, vol. 32(14), pages 2077-2082, August.
    • Handle: RePEc:taf:apeclt:v:32:y:2025:i:14:p:2077-2082
    DOI: 10.1080/13504851.2024.2332536
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