The roles of community assets in mitigating the impact of drought on grain yields in Northwest China

As an arid and semiarid region in that is frequently hit by drought, Northwest China is ecologically vulnerable. Faced with drought and other extreme events, policy makers have given top priority to the formulation and implementation of adaptation policies. This paper investigates the roles of community assets, including community social capital and access to public services, in mitigating the impact of drought in Northwest China. Based on a micro-level dataset of individual households and villages from two provinces, we find a major effect of community assets on grain yields, after controlling for other influences. Our econometric analyses show that the severity of drought in the study areas significantly reduces grain yields. The negative impact of drought, however, can be significantly mitigated in villages with better community assets. Several policies, including enhancing investments in communities’ infrastructure and providing public services related to drought, are recommended to both improve local adaptive capacity to drought and reduce poverty in the drought-prone areas.