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We examine the impact of collective action on rural economic development and the moderating and threshold effects of labour outmigration using farm household survey data from rural China. The results indicate that collective action can enhance rural economic development; however, its efficacy may decrease in highly populated villages. Mechanisms for rural economic development assessments can enhance the effectiveness of collective action. Labour outmigration negatively moderates the relationship between collective action and rural economic development, suppressing the facilitating effect of collective action on rural economic development. Collective action significantly boosts rural economic development when the labour outmigration level is below a certain threshold. However, if it is above this threshold, the effect becomes insignificant. This study highlights the positive role of collective action in rural economic development and the critical effect of labour migration on this dynamic.
Wang et al. (2024) studied this question.