scholarly journals The Influence of Social Capital on Farm Household’s Borrowing Behavior in Rural China

2018 ◽  
Vol 10 (12) ◽  
pp. 4361 ◽  
Author(s):  
Hong Sun ◽  
Valentina Hartarska ◽  
Lezhu Zhang ◽  
Denis Nadolnyak

This paper evaluates whether social capital affects the ability of farm households to obtain formal and informal loans. We test for the impact of two measures of social capital. The first measure, kinship, captures the traditional aspects of bonding social capital in rural areas that might affect the probability of getting informal loans. As the economic reforms in China have changed the traditional rural way of life and weakened the role of kinship, more mobile farmers are likely to develop a different kind of social capital also based in the Chinese tradition but not focused exclusively on kin. This friendship social capital is hypothesized to affect farmers’ ability to get both formal and informal loans. We use the Chinese Household Finance Survey data from 2013 and estimate the probability of obtaining credit, while also accounting for the reverse causality. In addition, we use the Heckman selection model to establish how social capital affects not only the probability of getting loans but also the size of the loan. Empirical results suggest that social capital affects borrowing by farm households. In particular, the friendship social capital has a positive effect on farm household’s ability to get formal loans, and has a substitution effect on informal borrowing, while kinship has a positive effect on farm households’ ability to get informal loans. Friendship and kinship are positively associated with the amount of a farm household’s formal and informal loans, respectively.

2021 ◽  
Vol 13 (13) ◽  
pp. 7164
Author(s):  
Guillermo Vázquez Vicente ◽  
Victor Martín Barroso ◽  
Francisco José Blanco Jiménez

Tourism has become a priority in national and regional development policies and is considered a source of economic growth, particularly in rural areas. Nowadays, wine tourism is an important form of tourism and has become a local development tool for rural areas. Regional tourism development studies based on wine tourism have a long history in several countries such as the US and Australia, but are more recent in Europe. Although Spain is a leading country in the tourism industry, with an enormous wine-growing tradition, the literature examining the economic impact of wine tourism in Spanish economy is scarce. In an attempt to fill this gap, the main objective of this paper is to analyze the impact of wine tourism on economic growth and employment in Spain. More specifically, by applying panel data techniques, we study the economic impact of tourism in nine Spanish wine routes in the period from 2008 to 2018. Our results suggest that tourism in these wine routes had a positive effect on economic growth. However, we do not find clear evidence of a positive effect on employment generation.


2021 ◽  
pp. 019791832110002
Author(s):  
Matteo Vergani ◽  
Ihsan Yilmaz ◽  
Greg Barton ◽  
James Barry ◽  
Galib Bashirov ◽  
...  

This IMR Research Note examines the impact of the level of bonding social capital on access to employment among newly arrived Afghan refugees in Victoria (Australia). Based on a mixed-methods analysis of biographical interviews with 80 Afghan refugees, it examines their use of social capital, year by year, during the first three years after their arrival. Our analysis shows that higher levels of bonding social capital are associated with greater success in finding employment during the first and second year of settlement. In the third year, however, bonding social capital for Afghan refugees in Victoria is no longer a significant predictor of employment. This Research Note helps clarify inconsistent findings in the literature on the effects of social capital on obtaining employment by suggesting that bonding social capital’s impact on refugee employment success changes significantly across the first three years after arrival. This finding has important implications for migration policy and the prioritization of resources toward services for newly arrived refugees.


2014 ◽  
Vol 21 (4) ◽  
pp. 453-475 ◽  
Author(s):  
Sepehr Ghazinoory ◽  
Ali Bitaab ◽  
Ardeshir Lohrasbi

Purpose – In the last two decades, researchers have paid much attention to the role of cultural values on economic and social development. In particular, the crucial role of different aspects of culture on the development of innovation has been stressed in the literature. Consequently, it is vital to understand how social capital, as a core cultural value, affects the innovation process and the innovative performance at the national level. However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained. Thus, the purpose of this paper is to investigate the influence of four different dimensions of social capital (institutional and interpersonal, associational life and norms) on two of the main functions of national innovation system (NIS) (entrepreneurship and knowledge creation) based on over 50,000 observations in 34 countries. Design/methodology/approach – In this regard, national-level data from the World Values Survey database was employed to quantify social capital. Entrepreneurship is, in turn, assumed to consist of three sub-indexes and 14 indicators based on the Global Entrepreneurship Index. Knowledge creation is also measured through US Patent Office applications. Also, exploratory factor analysis and structural equation modeling approach were used to build the measurement model and investigate the impact that each factor of social capital had on entrepreneurship and knowledge application, respectively. Measurement and structural models were built and their reliability and validity were tested using various fit indices. Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Findings – Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Originality/value – However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained.


Agriculture ◽  
2021 ◽  
Vol 11 (12) ◽  
pp. 1230
Author(s):  
Fang Su ◽  
Nini Song ◽  
Nannan Ma ◽  
Altynbek Sultanalive ◽  
Jing Ma ◽  
...  

This paper aims to identify effective mechanisms for government poverty alleviation measures based on the livelihood sustainability of farm households in Southern Shaanxi province, China. The paper utilizes data from 414 farm households, collected through field observations and in-depth interviews in 24 rural communes in Qinba Mountain Area of Shaanxi province, China. Using theoretical research methods and employing the sustainable livelihood approach (SLA) framework, this paper analyzes poverty alleviation measures as well as the impact of varied capital availability on sustainable livelihood. The study shows that developing local industries and governmental financial support improve the sustainable livelihood of farmers and eradicate absolute poverty. The findings of this study further indicate that there is a positive correlation between poverty alleviation measures and natural and social capital for sustainable livelihood. The paper provides empirical and quantitative evidence on alleviation of poverty, and the findings will help improve the sustainability of livelihood capability of farming households. This study suggests impactful approaches to stabilizing mechanisms for poverty alleviation in rural areas over the longer term.


2019 ◽  
Vol 5 (1) ◽  
pp. 41
Author(s):  
Koire Twaha ◽  
Arshad Ali Bhatti ◽  
Husain Abbas Naqvi

This study analyses the impact of oil discovery on household poverty and inequality by employing a CGE model using 2007 SAM for Uganda. The oil production and export simulations show a decline in absolute poverty, poverty gaps and severity. Further, our findings showcase a positive effect of production and exports on household welfare, except for urban farm households. This study recommends for the managers of the economy to pay special attention towards injection of a reasonable portion of oil rent in sectors which positively contribute to the economy, diversify non-oil exports and above all, boost private consumption.


2019 ◽  
Vol 11 (18) ◽  
pp. 4987 ◽  
Author(s):  
Bo Wang ◽  
Po-Yuan Cheng ◽  
Brian Lee ◽  
Lih-Chyun Sun ◽  
Hung-Hao Chang

Recent research has highlighted the importance of agricultural cooperatives on farm production. Although the consensus from the literature suggests that participating in these organizations significantly affects farm production, there is inconclusive evidence on whether this effect is positive or negative. Moreover, previous studies solely focus on the magnitude of this effect and fail to explain the mechanism behind it. This study contributes to this knowledge gap by estimating the impact of agricultural cooperatives on farm profits. To do this, we apply the causal mediation analysis to explain the potential mechanism behind this relationship. Using a nationally representative survey of farm households from Taiwan in 2013, we find that participating in cooperatives increases farm profits. Furthermore, this effect is more pronounced for producers with higher profits. Concerning the mechanism, we find that the use of food labels accounts for approximately 15 to 28% of the total effect of cooperative participation on farm profits.


2016 ◽  
Vol 6 (1-2) ◽  
pp. 205-226 ◽  
Author(s):  
Thomas H. Bak

Abstract Within the current debates on cognitive reserve, cognitive ageing and dementia increasingly showing a positive effect of mental, social and physical activities on health in older age, bilingualism remains one of the most controversial issues. Some reasons for it might be social or even ideological. However, one of the most important genuine problems facing bilingualism research is the high number of potential confounding variables. Bilingual communities often differ from monolingual ones in a range of genetic and environmental variables. In addition, within the same population, bilingual individuals could be different from the outset from those who remain monolingual. We discuss the most common confounding variables in the study of bilingualism, aging and dementia, such as group heterogeneity, migration, social factors, differences in general intelligence and the related issue of reverse causality. We describe different ways in which they can be minimised by the choice of the studied populations and the collected data. In this way, the emerging picture of the interaction between bilingualism and cognitive aging becomes more complex, but also more convincing.


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