Relationship analysis between livelihood assets and livelihood strategies:A Heihe River Basin example

Abstract

The security and quality of the livelihood of farmers is of paramount concern in rural areas of China. Livelihood stability would force the related polity to act coordinately while eradicating poverty and promoting resource sustainability. For this study, the livelihood approach was used as a framework of analysis that is based upon Sustainable Livelihoods Framework, the core of which is livelihood assets. Livelihood capitals provide substantial contributions to the well-being of numerous rural dwellers. However, the level and degree of reliance on livelihood capital differ across households. Factors that contribute to the economic reliance of households on a particular economic activity in general and on livelihood capital in particular may vary depending upon the type of resource endowment, household demographic, and economic characteristic as well as exogenous factors such as markets, prices, policies, and technologies. This study identifies factors that influence a household’s livelihood strategy choice with a particular focus on livelihood assets. The study applies a preliminary investigation concerning the relationship between livelihood assets and livelihood strategies, that is, the allocation of assets. Environmentally augmented household livelihood assets were collected from 300 sample households within the Heihe River Basin. Results show that physical assets possess a maximum value (0.609) for farmers and human assets possess a relatively high value (0.516) followed by social assets (0.354). Besides, financial and natural assets possess relatively low values (0.286 and 0.241, respectively). An increment of one unit should reduce the occurrence of choosing non-agricultural activities for natural capital while an increment of one unit should increase the occurrence of choosing non-agricultural activities for financial capital, while other variables remain constant. Governments, therefore, should enhance funding and technological support to achieve livelihood diversity and strengthen the facility of farmers by way of establishing relevant polity. It would enable farmers and provide themselves with the ability and asset reserves to transition from agricultural production to secondary and tertiary industries in order to improve the livelihood of farmers overall.