The Emergence of Farmer Entrepreneurs as a Result of Local Fiscal Pressure
In recent years,fiscal reforms and economic shocks have intensified local fiscal pressures in China.Understanding the effects of these pressures is crucial to advancing the new development paradigm.Using the abolition of the agricultural tax reform as a quasi-natural experiment,this study investigates how fiscal pressure influences farmers'entrepreneurship.The findings re-veal that:1.Fiscal pressure significantly promotes farmers'entrepreneurship.In counties experiencing fiscal revenue shocks at the 75th percentile,the likelihood of farmers becoming entrepreneurs is approximately 3 percentage points higher than in counties at the 25th percentile.2.The abolition of the agricultural tax reform primarily stimulates farmers'entrepreneurship in industrial and service sectors.Interestingly,farmers with fewer political connections or lower abilities are more likely to transition into entrepre-neurship after the reform.These findings suggest that local governments can stimulate entrepreneurial vitality as a strategy to miti-gate fiscal pressure and enhance self-sufficiency.Improving public services and fostering a supportive business environment can be viable pathways for addressing fiscal risks and promoting sustainable development.
万方数据
维普
