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

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.

Citation

Ma, X., Wang, J., Zhao, L. and Han, J. (2020), "The effects of social capital on farmers’ wellbeing in China’s undeveloped poverty-stricken areas", China Agricultural Economic Review, Vol. 12 No. 1, pp. 108-121. https://doi.org/10.1108/CAER-06-2016-0087