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Exploring the determinants of on-farm transitions: Evidence from rural China

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  • Hao Wang
  • Jan Fidrmuc
  • Qi Luo
  • Mingzhong Luo

Abstract

To shed light on the sustainable development of rural areas, we study the determinants of transitions from subsistence farming into either formal agricultural employment or agricultural entrepreneurship based on a recent nationally representative survey dataset. We pay particular attention to the roles of different capital endowments broadly including human, financial, natural, social and political capital. Our results show that human, natural, social and political capital are all important determinants of rural households’ transitions to on-farm employment and entrepreneurship while financial capital plays a limited role. These findings are robust to fully controlling for off-farm transitions as part of the household occupational strategy.

Suggested Citation

  • Hao Wang & Jan Fidrmuc & Qi Luo & Mingzhong Luo, 2020. "Exploring the determinants of on-farm transitions: Evidence from rural China," Applied Economics, Taylor & Francis Journals, vol. 52(52), pages 5667-5686, November.
  • Handle: RePEc:taf:applec:v:52:y:2020:i:52:p:5667-5686
    DOI: 10.1080/00036846.2020.1770194
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    Cited by:

    1. Wang, Hao & Fidrmuc, Jan & Luo, Qi, 2021. "A spatial analysis of inward FDI and urban–rural wage inequality in China," Economic Systems, Elsevier, vol. 45(3).

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