Research on the Sustainable Livelihoods of Rural Households Based on Livelihood Capital: Evidence from the Natural Rubber Production Area in Hainan and Yunnan Provinces

Abstract

Livelihood capital is the core element of sustainable livelihood development for rural households. Based on the survey data of 615 growers in the main rubber-producing areas of Hainan and Yunnan province, this paper constructs an evaluation system of rubber growers' livelihood capital within the sustainable livelihood analysis framework and calculates key indicators, such as farmers' livelihood capital index, livelihood activity diversity index, and household income diversity index. The multiple regression model and the mediating effect model are used to explore the influence mechanism of livelihood capital on the sustainable livelihood of rural households. The following three conclusions are drawn: (1) The accumulation of livelihood capital of rural households is conducive to enriching the structure of household livelihood activities and income sources, especially the accumulation of financial capital, which is more likely to improve the diversity of household livelihood activities. Regional differences exist in the impact of livelihood capital structures on rural household livelihood outcomes. Natural capital endowment has a significant effect on the income diversification level in Hainan, but there may be a "curse" effect in Yunnan. (2) Geographical characteristics, production decisions, and farming household characteristics significantly impact sustainable livelihoods. The altitude of the village and the distance from the county seat pose certain challenges for farmers in diversifying their livelihoods. Although the law of rubber tapping production may weaken farmers' production and business activities, it can better stabilize farmers' incomes owing to its strong flexibility in labor arrangements, which may be beneficial for diversifying livelihoods; however, it does not necessarily lead to diversified incomes. While the characteristics of poor households can help rural households gain policy support, building capacity is the key to achieving a sustainable livelihood. (3) There are intermediary effects of livelihood capital on livelihood activities and household income, but the mechanisms of action are different. For the diversity of farmers' livelihoods, 52.70% of the catalytic effect of livelihood capital is achieved by improving the ability to integrate livelihood capital. Optimizing household employment strategies contributed to the promotion of livelihood capital on the income diversification index, with a mediating effect of 30.52%. The main contribution of this study is to clarify how livelihood capital can achieve the goal of diversifying household livelihood activities and income by coordinating livelihood capacity and employment strategies. Therefore, to enhance the comprehensive livelihood capacity of rural households, the coordination capacity of livelihood capital, livelihood capacity building should be enhanced, and employment information channels should be expanded.

Keywords

• natural rubber
• livelihood capital
• diversity of livelihoods
• income diversification
• mediating effect
• hainan island
• yunnan province