Households' Risk Management Strategies and Vulnerability to Poverty in Rural China
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This article concerns the effectiveness of risk management strategies adopted by Chinese rural households, in western China where the economic and social context has changed greatly since the late 1990s. Drawing on an existing framework of risk management and vulnerability to poverty, we propose a new model based on qualitative data analysis and test it using quantitative data. We find that risk management strategies include selfinsurance instruments, which involve households' assets and income diversification, and a risk-sharing strategy. Income diversification, precautionary financial saving, and informal social supports are major risk management strategies, which can be effective in reducing vulnerability. Compared with results of previous studies, we find risk management strategies have been revised; the revisions are caused by the rapid social and economic changes that have taken place since the late 1990s.
JOUR
Xiujun, Tai
Shuzhuo, Li
Marcus, Feldman W.
Daily, Gretchen C.
2010
Innovation and Sustainable Development in Agriculture and Food
1381