The effects of social capital and family income on farmers’ participation in rural public goods provision

Abstract

Farmers' participation in rural public goods provision (PGP) is vital to improving rural public goods conditions and achieving rural revitalization in China. The factors influencing farmers' participation are, however, far from clear. This paper aims to investigate how social capital and income, the two most prominent factors, affect rural residents' participation in PGP. We use the Heckman sample selection model to empirically estimate the effects of both social capital and family income on farmers' participation and contribution to PGP based on a household survey conducted in four representative provinces in China. We further investigate the moderating effect of village location and elite ability on the effect of social capital on farmers' participation. Our results show that social capital generally has a positive impact on farmers' participation. Specifically, improving the formal norm, size of networks, and density of network would increase farmers' participation propensity. Enriching norms, particularly formal norms, can significantly improve farmers' contribution to public goods. Surprisingly, family income, mainly non-farm income, has a slightly negative effect on farmers' participation. Moreover, village-county distance can undermine the effect of social norms on farmers' participation, while elite ability can enhance the effect of social trust on farmers' participation. Thus, we suggest authorities should focus on enhancing social capital in the rural community to promote farmers’ participation in PGP.