TITLE:
Agricultural Subsidies and Rural Family Entrepreneurship—Empirical Analysis Based on Chinese Microdata
AUTHORS:
Jina Li
KEYWORDS:
Agricultural Subsidy, Rural Family Entrepreneurial Behavior, Heterogeneity
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.4,
April
28,
2018
ABSTRACT: Using
the data of Chinese household finance survey in 2011, this paper has used
the binary regression model of discrete variables to examine the influence of
agricultural subsidy policy on rural family entrepreneurial behaviors.
Empirical research shows that agricultural subsidies significantly lower the
probability of the rural family entrepreneurial behaviors. On average, every 1
per cent increase in agricultural subsidies would reduce the probability of rural
family entrepreneurship by 15.6 percentage points. At the same time, the
influence of agricultural subsidies on family entrepreneurial probability is
heterogeneity: agricultural subsidies have significantly reduced the
probability of rural family entrepreneurship
in low-social network groups and non-main producing areas, but have not
significantly reduced the probability of rural family entrepreneurship in
high-social network groups and major grain-producing areas. Further
study found that agricultural subsidies affect the transmission mechanism of rural
family entrepreneurial probability: agricultural subsidies—raising agricultural
income and reducing the probability of entrepreneurship.
Finally, this paper puts forward that it should give full play to comparative
advantage and implement regional differentiation subsidy strategy; we will
vigorously develop inclusive finance to improve the rural credit environment.