Factors influencing poverty levels in rural households in Southwest China

Abstract

This paper examines factors behind poverty in Kelang and Haizi, rural villages in Yunnan province in the South West China. Determinants of household income per capita, off-farm employment choice and off-farm income levels were investigated using seemingly unrelated regression, probit model and Heckman selection model, respectively. Farm household survey data collected in 2003, were used for estimation. The analytical results indicate off-farm employment, land productivity, land area per labour units, education and proximity to a large city play an important role in determining the level of household income per capita.