Rural poverty, network ties and institutional forces: an analysis of empirical evidence in Aguascalientes, Mexico

Abstract

Abstract The research objectives are: 1) to determine the effects that knowledge, educational and socio-cultural capabilities have on poverty reduction; 2) to determine the effects that collaborative networks have on knowledge, educational and socio-cultural capacities; and 3) to determine the effects of legal protection and government support on collaborative networks. The capability approach was taken as a theoretical basis to develop the study variables. We conducted an empirical study, using a sample of 95 farmers located in the state of Aguascalientes, Mexico. Important implications were obtained on the necessity to have network ties to impact capabilities that reduce rural poverty. One of the most important findings was not finding empirical evidence on the relationship between educational capabilities and the reduction of rural poverty. For this reason, this situation must be reviewed in-depth by the educational policy of the region. Farmers who reported having better socio-cultural capacities had the greatest effects in reducing poverty within their rural communities. Similarly, collaborative networks favor knowledge capacities because important information is shared through social and economic actors.

Keywords

• institutional forces
• networks ties
• rural poverty
• structural equation modelling