Research On The Impact Of Entrepreneurship On Peasant Family Consumption

In the context of the accelerated promotion of the strategy of expanding domestic demand and the growing of farmer entrepreneurship,the quantity and quality of peasant families consumption is related to the construction of rural consumption market and the smooth “domestic systemic circulation”.The report of the 20 th National Congress of the Communist Party of China pointed out that “enhancing the fundamental role of consumption in economic development”.However,for a long time,the consumption quantity of peasant families has been relatively low and the consumption structure is single,which has reduced the consumption quality of peasant families and restricted the development of rural consumption markets in China.Under the influence of entrepreneurship,peasant families have a higher income and cognitive ability,which will have an impact on the quantity and structure of peasant families consumption.Entrepreneurial peasant families are not only the backbone of rural consumption market,but also their consumption behavior will have an impact on other peasant families.Therefore,it is of great theoretical and practical significance to explore the impact of entrepreneurship on peasant families consumption.This paper mainly discussed the impact and mechanism of entrepreneurship on peasant family consumption.Specifically,based on the entrepreneurial cognitive theory and cognitive behavioral theory,this paper defined the core concepts of farmer entrepreneurship,cognitive ability and consumption structure in order to construct an analytical framework framework for the impact of entrepreneurship on peasant families consumption.This paper elaborated on the theoretical logic of the impact of entrepreneurship on the quantity and structure of peasant families and the mechanism of the impact of entrepreneurship on the consumption of peasant families through increasing income and improving cognitive ability.Using the data of China Family Panel Studies(CFPS)in 2018,2016 and 2012,this paper empirically tested the impact of entrepreneurship on the quantity and structure of peasant families,the impact of entrepreneurship on peasant families consumption through increasing income and improving cognitive ability by building measurement models such as multiple linear and difference of difference.Based on the dynamic stochastic general equilibrium model(DSGE),an extended analysis was made on the intertemporal decision of consumption quantity of entrepreneurial peasant families.The following conclusions are obtained:(1)Entrepreneurship has a positive impact on peasant families consumption.The impact of entrepreneurship on peasant families consumption is mainly manifested in two aspects: consumption quantity and consumption structure.Whether entrepreneurship family has a significant positive impact on the quantity of peasant families consumption,indicating that entrepreneurship can increase the quantity of peasant families consumption.Whether entrepreneurship family has a significant positive impact on the proportion of enjoyment consumption,indicating that entrepreneurship optimizes the consumption structure of peasant families by increasing the proportion of enjoyment consumption.The robustness analysis results provide support for the reliability of this research conclusion.The results of heterogeneity analysis show that entrepreneurship can promote the increase of peasant families consumption quantity with low and high income,and the promoting effect of entrepreneurship on the increase of peasant families consumption quantity decreases with the increase of age.(2)Entrepreneurship can affect peasant families consumption by raising incomes.Firstly,entrepreneurship can increase the income of peasant families.After eliminating the endogeneity problem,whether entrepreneurship family has a significant positive impact on per capita peasant families net income(logarithm).Secondly,after adding per capita peasant families net income(logarithm),the influence coefficient of whether entrepreneurship family on consumption quantity and the proportion of recreational consumption changes,indicating that the increase of income is one of the important ways that entrepreneurship affects the peasant families consumption.The results of extension analysis show that the increase of income can help entrepreneurial farmer families make better intertemporal decision of consumption quantity and realize consumption smoothing.(3)Entrepreneurship can affect peasant families consumption by improving cognitive.Firstly,entrepreneurship can improve the cognitive ability of peasant families.The empirical results based on the difference-difference model of entrepreneurship and age difference show that entrepreneurship has the most significant impact on peasant families whose household is between 41 and 50 years old.Compared with non-entrepreneurial peasant families,the cognitive ability of entrepreneurial peasant families increases by 21%standard deviation.The test of the identification hypothesis of changing the age interval of the household of peasant families that is most affected by entrepreneurship,the test of gradually narrowing the age interval and the test of replacing the result variables all provide rationality and robustness support for the empirical results.Secondly,after the inclusion of cognitive ability,whether entrepreneurship family on the family consumption quantity and the proportion of recreational consumption changes,indicating that cognitive improvement is one of the important ways that entrepreneurship affects the peasant families consumption.The results of extended analysis show that the improvement of cognitive ability can help entrepreneurial farmer families make better intertemporal decision on consumption quantity and realize consumption smoothing,and also help alleviate the entrepreneurial risks of entrepreneurial peasant families,so as to reduce the fluctuations of peasant families consumption.According to the research conclusions,the policy implications mainly include the following three points.Firstly,we need to create a favorable environment for entrepreneurship to steadily increase the incomes of entrepreneurial peasant families.Secondly,we need to optimize the knowledge structure and way of thinking to promote the cognitive ability of entrepreneurial peasant families.Thirdly,both sides of supply and demand should make efforts to build an effective rural consumption market.