The impact and heterogeneity analysis of digital financial inclusion on non-farm employment of rural labor

This study examines the effects of digital financial inclusion on non-farm employment of rural labor and the mediating mechanism of innovation and entrepreneurship activity using China Family Panel Studies(CFPS)and the provincial index of digital financial inclusion.Through the empirical test of the Probit model and mediation effect model,we found that:firstly,digital financial inclusion can promote non-farm employment of rural labor,with the level of digitalization having the most significant impact;secondly,by encouraging innovation and entrepreneurial activity,digital financial inclusion can promote non-farm employment of rural labor;thirdly,the driving effect of digital financial inclusion on non-farm employment of rural labor is more pronounced among the unmarried,eastern region,and male labor.Therefore,we should improve the construction of rural digital infrastructure and accelerate the development of inclusive rural finance to promote more diversified non-farm employment options for“disadvantaged groups”;encourage and support innovation at the government level,and create a favorable atmosphere for innovation and entrepreneurship.Simultaneously,farmers’digital literacy and financial knowledge should be improved so that more can adopt and take advantage of digital financial inclusion.

Rural transformation,income growth,and poverty reduction by region in China in the past four decades

China has experienced rapid rural transformation in the past four decades.Accompanying the rapid transformation is a significant rise in rural household income and a substantial fall in rural poverty.This paper examines the evolutions of and the relationships between rural transformation(high-value agriculture and rural non-farm employment)and its outcomes(per capita rural income and rural poverty incidence)using provincial-level data.The results show that 31 provinces/autonomous regions/municipalities have undergone significant rural transformation,but the level and speed of rural transformation differed considerably.Moreover,an increased level of rural transformation is often associated with higher per capita rural income and reduced rural poverty incidence.Notably,a category of provincial rural transformation based on high-value agriculture and rural non-farm employment is also analyzed.We further discuss the likely impacts of institutions,policies,and investments(IPIs)on rural transformation and conclude with policy implications.

Regional rural transformation and its association with household income and poverty incidence in Indonesia in the last two decades

Increasing rural household income and reducing poverty rank among Indonesia’s top development priorities.Promoting rural transformation is one strategic policy framework to achieve these goals.In the last three decades,agricultural production has shifted from low-value food crops to high-value commodities,such as horticulture,estate crops,and livestock.Previous studies have analyzed rural transformation in Indonesia at the national level,but information on the magnitudes of impact across regions remains scarce.This study aims to analyze the changes in rural transformation at a regional level in the past two decades.The research utilizes secondary data from Statistics Indonesia(BPS),covering 34 provinces from 2000 to 2020,analyzed using descriptive and panel data regression analyses.The results show an increasing trend in the share of high-value agriculture(RT_(1))and rural non-farm employment(RT_(2)).Both RT_(1)and RT_(2)are positively associated with the growth of rural household income and a lower poverty rate.However,the speed of structural transformation(ST),RT_(1),RT_(2),rural income growth,and poverty reduction vary across regions.This research implies that improving rural income and reducing poverty should be done by integrating policies,i.e.,promoting highvalue agriculture and expanding rural non-farm employment.Particular attention should also be given to provinces with slow growth in ST,RT_(1),RT_(2),and rural household income.

Inclusive Finance,Income Gaps and Common Prosperity

According to the Report to the 20^(th) CPC National Congress,delivering common prosperity for all the people is an intrinsic requirement of Chinese modernization.Based on China Household Finance Survey(CHFS)data from 2015 to 2019,this study examines the effects of inclusive finance on China’s household income disparities and demonstrates how inclusive finance contributes to shared prosperity.Our empirical research reveals that inclusive finance has significantly decreased the income disparities between Chinese households.Inclusive finance has significantly increased the income levels of households below the 40^(th) percentile,making it more likely for them to move above the 40^(th) percentile of incomes,which is conducive to delivering common prosperity.Our analysis indicates that inclusive finance will reduce income disparities by assisting low-income households in starting a business and by promoting rural household employment.Reflecting its inclusive nature,further investigation reveals that inclusive finance has a greater positive impact on the income level of vulnerable households.Our research offers new evidence for comprehending the role of inclusive finance and a new interpretation of income disparities,with policy implications for accelerating Chinese modernization.

Determinants of Household Choice of Livelihood Diversification Strategies in Selected Drought Prone Areas of the Southern Nations Nationalities and Peoples’ Region, Ethiopia

The study aimed at identifying the determinants of household’s choice of livelihood diversification strategies. The result of the study based on a total of 384 sample respondents selected using multistage sampling procedures. Furthermore the study employed bivariate Probit econometric model to identify factors affecting household’s choice of livelihood diversification strategies. The result of the descriptive statistics showed that households in the study area were engaged in four types of combination of livelihood diversification strategies: on-farm only, on-farm plus off-farm, on-farm plus non-farm, and on-farm plus off-farm plus non-farm with their respective share of 34.9, 11.5, 47.9 and 5.7 percent respectively. The econometric model result showed that wealth, sex, education level, livestok holding, and training were negatively and significantly determined households choice of off-farm livelihood strategies;whereas past erosion hazard and distance to market were positively and significantly determined their choice of off-farm livelihood strategies. On the other hand, wealth, dependency ratio, past erosion hazard, market availability, yield loss/reduction due to drought, distance to credit source, distance to market, frequency of extension contact, and ICT ownership (Radio, TV and/or Mobile phone) positively determine household’s choice of non-farm livelihood strategies whereas access to irrigation and distance to credit negatively determined their choice of non-farm livelihood strategies.

Impact of livelihood diversification of rural households on their ecological footprint in agro-pastoral areas of northern China

Human-environment relationship is a focus of academic researches and an understanding of the rela- tionship is important for making effective policies and decisions. In this study, based on rural household survey data of Taibus Banner, Duolun county and Zhengxiangbai Banner in the Inner Mongolia autonomous region of China, we identified the impact of livelihood diversification on ecosystems in these agro-pastoral areas by using the ecological footprint theory and methodology together with the one-way analysis of variance （ANOVA） and correlation analysis methods. In 2011, the total ecological footprint of consumption （EFC） was 0.665 g hm2, and the total ecological footprint of production （EFP） was 2.045 g hm2, which was more than three times the EFC. The ecological footprint of arable land consumption （EFAC） accounted for a large proportion of the EFC, and the ecological footprint of grassland production （EFGP） occupied a large proportion of the EFP. Both the ecological footprint of grassland consumption （EFGC） and EFGP had a significant positive correlation with the income, indicating that income was mainly depended on livestock production and the households with higher incomes consumed more livestock prod- ucts. The full-time farming households （FTFHs） had the highest EFP, ecological footprint of arable land production （EFAP）, EFGP and EFGC, followed by the part-time farming households （PTFHs） and non-farming households （NFHs）, which indicated that part-time farming and non-farming employment reduced the occupancy and con- sumption of rural households on local ecosystems and natural resources to some extent. When farming households engaged in livestock rearing, both the EFAP and EFAC became smaller, while the EFP, EFC, EFGC and EFGP increased significantly. The differences in ecological footprints among different household groups should be taken into account when making ecosystem conservation policies. Encouraging the laborers who have the advantages of participating in non-farming employment to move out of the rural areas and increasing the diversification of liveli- hoods of rural households are important in reducing the environmental pressures and improving the welfare of households in the study area. Moreover, grassland should be utilized more effectively in the future.

Impacts of Non-farm Employment of Rural Laborers on Agricultural Land Use:Theoretical Analysis and Its Policy Implications

During rapid urbanization and industrialization process, non-farm employment of rural laborers has emerged as a prevalent phenomenon in rural areas of China and become an important driving factor for changes in agricultural land use. This article attempts to theoretically analyze the impacts of non-farm employment of rural laborers on agricultural land use based on economic frameworks. As rational agents, farmers aim to maximize their income and follow equilibrium principles when they decide how to allocate their labor forces（or working time） in two departments（farm and non-farm） and how to use their agricultural land with different quality and location. The income earned by non-farm employment is higher, and there exists a comparative advantage between labors, as a result the quantity and quality of labor input in agricultural land use decreases. With the limitation of labor input during agricultural land use decision-making of farm households, on the one hand, land with higher quality is still utilized by farmers. On the other hand, poor quality land will be less well managed and is more likely to be abandoned. Non-farm employment of rural laborers and the rising of opportunity costs will result in abandonment of poor quality land, and great importance should be attached to this by policy makers.

Agricultural Land Use Intensity and Its Determinants in Ecologically-vulnerable Areas in North China:A Case Study of Taipusi County,Inner Mongolia Autonomous Region

Based on rural household survey data in Taipusi County in Inner Mongolia Autonomous Region, this article analyzes agricultural land use intensity and its determinants. The results reveal marked differences of agricultural land use intensity among households with different ages of householders, proportion of non-farm participants, total agricultural land area, land fragmentation and land utilization capacity. （i） Households with older householders and households with a smaller proportion of non-farming laborers generally spend more time on managing their land and invest less capital and materials than other households. The proportion of non-farming laborers within younger households is relatively high, and they tend to invest more capital and materials because the income derived from non-farm employment relaxes their financial constraints. （ii） Land fragmentation is an important determinant of land use intensity. Households with a bigger land size per plot usually spend less time and invest more capital and materials on their land; （iii） Land with better quality is usually managed intensively. The results suggest that labor has become an important constraint for local agricultural production, and there is the potential to improve land management scale and increase machinery input to substitute for labor. Furthermore, the effects of non-farm employment on land use intensity indicate that the establishment of a coordination mechanism between non-farm employment and agricultural land use is an important way to solve the conflict between ecological security and agricultural production in ecologically-vulnerable areas.