Effect of land expropriation on land-lost farmers' entrepreneurial action: A case study of Zhejiang Province

With the rapid urbanization and industry development, China has witnessed substantial land acquisition. Monetary compensation is usually adopted to settle down land-lost farmers. However, in this manner of compensation, land-lost farmers find settling down in cities and achieving civilization difficult. Promoting entrepreneurship has been suggested to be a sustainable approach to settle down land-lost farmers. However, only a few studies have been conducted to investigate the effect of land expropriation on land-lost farmers' entrepreneurial action. Therefore, how to effectively promote entrepreneurship among land-lost farmers remains unknown. To mitigate this deficiency, this study examines the effect of land expropriation on land-lost farmers' entrepreneurial action through the case of Zhejiang Province in China. Regression is used to examine the effect of land location, amount of compensation, and entrepreneurship policy on land-lost farmers' entrepreneurial action. Land location has a significant positive role, whereas amount of compensation has a significant negative role in initiating land-lost farmers' entrepreneurship. The results of this study can facilitate the local government to make appropriate policies to promote entrepreneurship among land-lost farmers. (C) 2015 Elsevier Ltd. All rights reserved.