Farmers' Entreneurship And Rural Poverty Reduction

Based on the data from the China Family Panel Studies(CFPS),this paper investigates the relationship between farmers' entrepreneurship and rural poverty reduction.The paper examines the effect of farmers' entrepreneurship and rural poverty reduction in the short-term and long-term performance,identifies the difference of poverty reduction effect of entrepreneurial behavior among different entrepreneurial subjects,and puts forward the pre-conditions for farmers' entrepreneurship to achieve poverty reduction.In the empirical process,Two-step IV-probit model is used to deal with the endogeneity caused by reverse causality,and short panel data is formed to constrain the endogeneity caused by omitted variables in cross-section data.This paper shows that the relationship of farmers' entrepreneurship and poverty reduction have time inconsistency,the poverty reduction effect of farmers' entrepreneurship is concentrated in the short term,but it is difficult to form effectively match the entrepreneurial elements and skill needs for the endowment of the poor farmers,and the risk of entrepreneurship of poor farmers increases the vulnerability of poverty.There is also significant inter-group heterogeneity in farmers' entrepreneurship and poverty reduction.The fact that the entrepreneurial behavior of non-poor farmers' have a better entrepreneurial performance and significant poverty reduction spillover effect.This conclusion explains the phenomenon of home loan is used by companies and arbitraged for the establishment archival poor households without distinction credit policy,and the policy measures to encourage entrepreneurship and poverty reduction should consider who should be supported to more help to rural poverty reduction in the long term.In addition,this paper holds that education,credit support and family structure are important preconditions for achieving the effect of entrepreneurship and poverty reduction.That non-poor farmers with higher levels of education and access to loans from formal financial institutions have better the effect of entrepreneurship and poverty reduction;Credit support can bring short-term poverty reduction effect to the establishment archival poorhouseholds through "income illusion",but the existence of entrepreneurial risk has inhibited the influence of credit support on the steady poverty reduction ability of poor farmers;and that farmers with higher family dependency ratio are more cautious in their entrepreneurial choices,which effectively constrains entrepreneurial risk,to improve the effect of farmers' entrepreneurship and poverty reduction.