Abstract

Poverty seriously hinders the inclusive development of mankind and is closely related to economic growth, ecological protection, ecological restoration and sustainable use of resources. Based on the data of economic census and rural fixed observation point, a spatial econometric model is established to test the direct impact and spatial spillover effect of industrial clusters on rural poverty alleviation. The result of household-level is that the number of industrial clusters has a negative effect on poverty, namely the farmers who live in the county with more industrial clusters, may be less likely to become the poor. The number of industrial clusters in other regions also has a negative effect on poverty. By dividing farmers into the poverty and non-poverty group, the study finds that, for the poverty group, the number of industrial clusters has a positive direct and spillover effect on farmers’ income. For the non-poverty group, the number of local industrial clusters has a positive direct effect on farmers’ income, but the number of industrial clusters in other regions does not have any effects or has a negative direct effect on farmers’ income. By classifying the industries, the study discovers that the labor-intensive industrial clusters, such as textiles, manufacture and processing of machinery parts and paper industries, have a positive effect on farmers’ income.

Highlights

  • If we only study the impact of local economic agglomeration on rural poverty reduction, we may miscalculate that

  • The first category is that farmers have stable jobs in industrial clusters and they may already be entrepreneurs, who have a high level of expertise, strong asset specificity and low liquidity

  • Local industrial clusters and industrial clusters in other regions both have impacts on them. These impacts are not because of the specialized production of industrial clusters but come from low threshold employment opportunities arising from economic agglomeration

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Summary

Introduction

Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. Under the dual disadvantages of natural resource endowments and national policies, aggregate economic output and farmers’ income of Zhejiang province has grown rapidly, the success of which lies in the development model of industrial clusters [2] This model has practically verified the effect of economic agglomeration on economic growth. Different from the traditional econometric hypothesis that the samples between each other are independent, spatial econometric suppose samples have spatial correlations It puts spatial distance weights into the spatial econometric model and reasonably constructs the effect of economic agglomeration in other regions on the growth of local farmers’ income and poverty alleviation, all of which make the distance no longer a “distance autocracy” but a link between the regions. This paper stresses the effect of local industrial clusters on increasing farmers’ income and rural anti-poverty and uses spatial econometric models to mainly focus on the role of industrial clusters in other regions in the increase of local farmers’ income and rural poverty alleviation

Literature Review
The Conceptual Model
Data Source
Econometric Model
Preliminary Estimation Results
Robustness Test and GMM Model Estimation Results
Estimated Results of Differentiating Farmers
Estimated Results of Classifying Industries
Conclusions
Full Text
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