AJIBM  Vol.8 No.4 , April 2018
Agricultural Subsidies and Rural Family Entrepreneurship—Empirical Analysis Based on Chinese Microdata
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.
Cite this paper: Li, J. (2018) Agricultural Subsidies and Rural Family Entrepreneurship—Empirical Analysis Based on Chinese Microdata. American Journal of Industrial and Business Management, 8, 963-984. doi: 10.4236/ajibm.2018.84066.

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