Livelihood sustainability of rural households in response to external shocks, internal stressors and geographical disadvantages: empirical evidence from rural China

Enhancing the livelihood sustainability of rural households in developing countries is especially imperative given their exposure to a multitude of shocks and stressors that may hinder their livelihood well-being. However, previous studies have mainly focused on assessing the sustainability of rural livelihoods and identifying the factors that influence it, but neglected the relationships between multiple risks, livelihood capital, geographical disadvantages, and livelihood sustainability. Based on the sustainable livelihood framework, the spatial poverty theory, and the pressure-state-response model, a conceptual framework that links external shocks, internal stressors, geographical disadvantages, and livelihood sustainability was established. These complex relationships were then quantified by Partial Least Squares-Structural Equation Modeling (PLS-SEM) using 6752 household samples collected in rural China. The results suggest that external shocks and geographical disadvantages have significant negative impacts on financial and mental capitals but positive impacts on natural capital, which further affect the livelihood sustainability of rural households. Internal stressors positively influence physical, social, and human and natural capitals, indicating that risk aversion promote family members to increase productivity and livelihood capital to enhance livelihood sustainability. The research findings have significant implications for enhancing livelihoods of households in rural China and elsewhere in developing countries.