Abstract
This study examines the impact of cash crop cultivation on household income and migration decisions, using survey data collected from low-income regions in China. Given farmers decide themselves whether to cultivate cash crops, an endogenous treatment regression model that accounts for potential selection bias issue is used to analyze the data. The empirical results show that cash crop cultivation exerts a positive and statistically significant impact on household income, but it does not affect household migration decisions significantly. The disaggregated analyses reveal that cash crop cultivation significantly increases farm income but decreases off-farm income.
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