Rural income diversification patterns and their determinants in China

Jianmei Zhao
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Jianmei Zhao: China Academy of Public Finance and Public Policy, Central University of Finance and Economics, Haidian District, Beijing, China

Agricultural Economics, 2014, vol. 60, issue 5, 219-231

Abstract: The article investigates the major rural income diversification patterns and their determinants in the context of China. Based on the data from a rural household survey, we first categorize the rural income diversification patterns according to the industry and the location in which the income is generated. Then we apply a Bayesian multinomial probit model to examine the determinants of various types of the rural income diversification. The major results demonstrate that a larger family size stimulates households to undertake various income diversification patterns, but its effects are discounted by an unproductive population structure within the household. Another interesting discovery is that a rural household chooses its income diversification pattern by referring to the surrounding neighbourhood; when most farm families depend on off-farm activities to boost their income, the individual household is more likely to follow the surrounding households by participating in the off-farm or mixed income activities or to migrate out to earn its income.

Keywords: Bayesian multinomial probit; income generation; rural households (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:60:y:2014:i:5:id:97-2013-agricecon

DOI: 10.17221/97/2013-AGRICECON

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