Human capital accumulation and its effect on agribusiness performance: the case of China

Abstract

This study investigates the effect of accumulated human capital on the performance of agribusinesses in China. Four hundred fifty agribusiness owners were interviewed for the study. Growth in sales over the last 5 years was used as a measure of performance. The following variables were reviewed and captured as those constituting human capital: education, raised in the area, parents being entrepreneurs, attending business seminars/trade fairs, managerial experience, similar work experience, cooperative membership, and training. Logit regression model and inferential statistics were used to analyze the data. The logit regression model was used to analyze the effect of accumulated human capital on growth in sales. The inferential statistics on the other hand was used to measure the association between age, education, sex, provinces, and the categories of growth. Our study found that parents who are entrepreneurs and attend business seminars/trade fairs, as well as have managerial experience, similar work experience, education, and training, display a statistically significant positive effect on the growth in sales.

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