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Rural Households’ Participation in Non-farm Business under the Perspective of Social Capital

Author: XuJiaZuo
Tutor: LinJian
School: Zhejiang University
Course: Agricultural Economics and Management
Keywords: Social Capital Non-farm business Market-oriented Informal system
CLC: F320
Type: Master's thesis
Year: 2011
Downloads: 160
Quote: 1
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Abstract

CHIPS-based data, the paper examines the impact of the social capital of China's rural household non-farm operators to participate in decision-making, as well as the social capital of this role will be how to improve as the degree of market-oriented change. The combing of the social capital literature can be seen in a different time and spatial location in a different social position of social capital ownership differences, which suffered constraints different social action. This article concluded that some farmers accumulated more social capital may make it in a good position in the non-farm development, Chapter IV of this article attempts to build an empirical model to confirm that this assumption. The Probit model preliminary results show that: each dimension of social capital in rural China, farmers nonfarm business participating did not affect the three dimensions of social capital in the same, the quality of social networks, trust and reciprocity and other non-farm family in rural China business participation has a significant positive effect on the size of the social network for farmers engaged in non-agricultural operations is not significant. Taking into account the workers of the impact of the behavior of the model, we use bivariate Probit model robustness test results above estimates, participate in social capital for non-farm operators and workers behavior no confusion, and the mechanism of action is not the same, Therefore, the above conclusions are reliable. In order to investigate the role of social capital in the process of market-oriented changes, social capital and provincial market index is constructed interaction terms in the econometric model of the fifth chapter. The method, in order to ensure the robustness of the model, first discussed some variable collinearity problem; Second, the effects of endogenous issues of trust and public participation, and average public through community participation effective instrumental variables to correct the model exists the endogeneity bias results show that the role of public participation dimension of social capital for farmers engaged in non-agricultural operations is not significant. The empirical results show that the network size, trust, and public participation in the dimensions of social capital impact will be weakened with the improvement of the degree of market-oriented farmers nonfarm business participation. The main conclusions are as follows: the one hand, informal institutions such as social capital based on the interpersonal network relations will play an important role in the non-agricultural development of the rural households in China, and the role of social capital in each dimension size is not consistent; On the other hand, The role of social capital in the process of market-oriented gradually weakened because of the modern market economy will cause a strong impact on the development of China-based kinship-based social structure, makes the role of social capital embedded in the social structure and inevitable Ground weakened. According to the above conclusions, the article concludes with policy recommendations.

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