Year-end Sale % OFF 
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.
Highlights
Explain the Impact of Variables on Family Entrepreneurship It can be seen from the regression results of Equation (1) in Table 2 that the agricultural subsidy is negative at the significance level of 5%, indicating that the agricultural subsidy significantly reduces the probability of family entrepreneurship
It can be seen from the regression results of the second and third column that the influence of agricultural subsidy on the family entrepreneurial probability of the high and low social network groups is heterogeneity
In the high social network group, as a result of the family can use of social resources is more, this means that the venture capital channels may be more, agricultural subsidies for will not strengthen the enthusiasm of agricultural production, so will not significantly reduce the probability of entrepreneurship
Summary
The results showed that the family farm subsidies will induce development transfer of money and more labor resources into higher economic benefit in non-agricultural production behavior, deviated from the agricultural subsidies to encourage farmers to agricultural production policy intentions [10]. The research on agricultural subsidies focuses on the agricultural subsidy policy on farmers’ income, labor transfer, agricultural production behavior and efficiency, and the development of rural economy. To sum up, it is to focus on farmers, agriculture and rural areas, the “three rural” perspective, relatively few studies on non-agricultural perspectives. Agricultural subsidies will have an impact on the non-agricultural production sector, but the impact will be less than that of the agricultural sector [46]
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