Sensitivity of Rural Households’ Livelihood Strategies to Livelihood Capital in Poor Mountainous Areas: An Empirical Analysis in the Upper Reaches of the Min River, China

Exploring the sensitivity of rural households’ livelihood strategies to livelihood capital is of great significance for improving rural households’ livelihood levels. This paper selects 23 livelihood capital measurement indicators and conducts an in-depth survey of rural households. In addition, the entropy method and a weighted comprehensive model are used to explore the basic characteristics of rural households’ livelihood capital in the upper reaches of the Min River, China, in 2017. Furthermore, econometric models are used to analyze the sensitivity of rural households’ livelihood strategies to livelihood capital. As indicated from the research, the livelihood capital levels of different types of rural households in the study area are not equivalent. The types of rural households with different livelihood strategies can be ordered in terms of quantity as follows: non-agricultural type > non-agricultural dominant type > agricultural dominant type > pure agricultural type. Livelihood strategies have different sensitivities to different livelihood capital measurement indicators. Among these indicators, cash income, the number of relatives and friends available for financial assistance, and the number of civil servants have positive effects on the livelihood strategy selection of non-agricultural dominant rural households and non-agricultural rural households. However, the average age of laborers, area of cultivated land and gardens, number of livestock and poultry, and present value of production tools have negative effects. These evaluation results can provide a scientific decision-making basis for the formulation of poverty alleviation policies by relevant government departments