Preprint Article Version 1 This version is not peer-reviewed

Sustainable Assets and Strategies for Affecting the Income of Forestry Household: Empirical Evidence from South Korea

Version 1 : Received: 19 May 2019 / Approved: 20 May 2019 / Online: 20 May 2019 (10:25:08 CEST)

A peer-reviewed article of this Preprint also exists.

Jo, J.; Roh, T.; Shin, S.; Youn, Y. Sustainable Assets and Strategies Affecting the Forestry Household Income: Empirical Evidence from South Korea. Sustainability 2019, 11, 3680. Jo, J.; Roh, T.; Shin, S.; Youn, Y. Sustainable Assets and Strategies Affecting the Forestry Household Income: Empirical Evidence from South Korea. Sustainability 2019, 11, 3680.

Journal reference: Sustainability 2019, 11, 3680
DOI: 10.3390/su11133680

Abstract

This study aims to identify the factors determining the income of forestry household in South Korea. We examine an empirical analysis using 3-year panel data conducted by the Korea Forest Service charged with maintaining South Korea's forest lands. The hypothesized factors determining the income of forestry household are classified into four types of assets and three types of livelihood strategies. We divided the income of forestry household (IFH) into three elements: forestry income (FI), non-forestry income (NFI), and transfer income (TI). We assessed the influences of household assets and livelihood strategies on each income. A random effect model was used as a statistical analysis with valid 979 of forestry household for three years. We found that household head's age, labor hours, savings, business category, cultivated land size, and region are significantly associated with IFH. Also, FI is influenced by labor capacity, cultivated size, business category, forestry business portfolio, and region while NFI is determined by household head's age, household head's gender, forestry business portfolio, and savings. TI is affected by household head's age, household head's education level, forestry business portfolios, savings, and region. The effect sizes and directions vary across different types of income (IFH, FI, NFI, and TI). The findings show that forestry in South Korea is highly dependent on sustainable assets and strategies. It is therefore expected that the effectiveness of forest policies to increase the income of forestry household would be differed by the source of each income. The results of this study draw attention to the need for an income support policy that should consider the characteristics of household assets and livelihood strategies in order to enhance IFH in South Korea.

Subject Areas

sustainable assets; sustainable strategies; income of forestry household; forestry income; non-forestry income

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