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The effects of social capital on farmers’ wellbeing in China’s undeveloped poverty-stricken areas

Xiaoqiang Ma, Jiaqi Wang, Ling Zhao and Jinmian Han

China Agricultural Economic Review, 2019, vol. 12, issue 1, 108-121

Abstract: Purpose - The purpose of this paper is to investigate empirically the effects of different dimensions of social capital on the well-being of farmers in China’s undeveloped poverty-stricken areas, and study the equivalent multiple of social capital and income compensation. Design/methodology/approach - The paper opted for an exploratory study using the open-ended approach of grounded theory, including 1,176 interviews with rural households in poverty-stricken areas in China. The data were complemented by documentary analysis. Then an econometric model of social capital and farmers’ well-being was applied to the data. Findings - The results show that the number frequently visiting relatives, reciprocity, participation and trust level are significantly positively related to the well-being of the farmers, and the level of participation in social capital requires the most income compensation, while the level of trust comes second. Originality/value - This paper can serve as a template for developing a useful tool that can be fitted to national or regional data for studying the effects of social capital on the well-being of farmers in poor areas or countries and for calculating the concrete equivalent multiple of social capital and income compensation.

Keywords: Social capital; Equivalent multiple; Farmers’ well-being; Undeveloped poverty-stricken areas (search for similar items in EconPapers)
Date: 2019
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