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Does Urban Innovation Promote Rural Entrepreneurship? Quasi-Natural Experimental Evidence from Microdata on New Agricultural Subjects

Author

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  • Linfeng Li

    (College of Business, Hunan Agricultural University, Changsha 410128, China)

  • Yang Liu

    (College of Business, Hunan Agricultural University, Changsha 410128, China)

  • Wensi Luo

    (College of Business, Hunan Agricultural University, Changsha 410128, China)

  • Xin Jiang

    (College of Business, Hunan Agricultural University, Changsha 410128, China)

Abstract

Rural entrepreneurship has injected new vitality into the comprehensive realization of rural revitalization, and exploring the impact of urban innovation and development on rural entrepreneurship is of great significance in promoting the comprehensive revitalization of the countryside and achieving the coordinated development of urban and rural areas. This paper utilizes the panel data of 284 cities in China from 2005 to 2020 and adopts the multi-period double-difference method to test the effect of innovative city pilots on the entrepreneurial level of new agricultural management subjects, so as to reflect the impact of innovation policy on rural entrepreneurship. The study finds that innovative city construction significantly improves the entrepreneurship level of new agricultural business subjects and that the policy effect continues to increase over time, which is still robust after considering endogeneity issues. The above effects are mainly achieved through improving scientific and technological inputs, enhancing credit support effects, and promoting scientific and technological progress. In the heterogeneity test, innovative city construction significantly promotes the entrepreneurship level of new agricultural business subjects in both small and medium-sized cities and cities with a high level of science and education, but significantly inhibits the entrepreneurship level of new agricultural management subjects in large cities and cities with a high level of science and education. At the same time, innovative city development promotes higher levels of entrepreneurship only in agricultural cooperatives and agribusinesses, with no significant effect on family farms. This study has important policy references for accelerating innovative city construction and rural revitalization development in China in the new era.

Suggested Citation

  • Linfeng Li & Yang Liu & Wensi Luo & Xin Jiang, 2024. "Does Urban Innovation Promote Rural Entrepreneurship? Quasi-Natural Experimental Evidence from Microdata on New Agricultural Subjects," Sustainability, MDPI, vol. 16(10), pages 1-20, May.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:10:p:3981-:d:1391544
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    References listed on IDEAS

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    1. Emma Verónica Ramos Farroñán & Marco Agustín Arbulú Ballesteros & Francisco Segundo Mogollón García & Flor Delicia Heredia Llatas & Gary Christiam Farfán Chilicaus & María de los Ángeles Guzmán Valle , 2024. "Sustainability and Rural Empowerment: Developing Women’s Entrepreneurial Skills Through Innovation," Sustainability, MDPI, vol. 16(23), pages 1-17, November.
    2. Mingqian Li & Lingping Zhang & Junyan Huang & Yiyi Lu, 2024. "A Quantitative Evaluation Study on Return-to-Hometown Entrepreneurship Policies in 16 Provinces (Municipalities) and Autonomous Regions in China Under the Rural Revitalization Strategy," Sustainability, MDPI, vol. 16(23), pages 1-29, November.

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