Understanding rural livelihood diversification in China’s contiguous poverty-stricken areas: A comparative analysis

Despite significant research on rural livelihood diversification, the complex interactions among shock experience, climatic conditions, and geographic location, as well as their impacts on rural livelihood diversification are still not fully understood, particularly in China’s contiguous poverty-stricken areas (CPSAs) from a comparative perspective. Utilizing a dataset of 1509 household samples from CPSAs, the study seeks to address this gap by introducing a new theoretical framework that connects these factors and empirically testing it through Partial Least Squares-Structural Equation Modeling and multi-group analysis. The findings reveal that shock experience and climate conditions primarily act as “push” factors, motivating households to diversify both on-farm and off-farm activities. Livelihood capitals, including physical, natural, human, and social capital, play significant roles in supporting diversification activities, while financial capital does not exert a significant impact on livelihood diversification. Geographic location influences livelihood diversification through both direct and indirect pathways, mediated by factors such as shock experience, and physical and natural capitals. Regional variations in livelihood diversification patterns further highlight the diversity of responses across CPSAs, with the Yunnan-Guangxi-Guizhou Stone Desertification Area showing the broadest range of livelihood sources, while the Yanshan-Taihang region exhibits the lowest levels of diversification. The research contributes a theoretical framework and crucial empirical findings on determinants of livelihood diversification for rural households in different CPSAs, offering significant implications for enhancing livelihood resilience in CPSAs and other vulnerable regions.