Abstract: It is crucial to exploring the relationship between capital and livelihood strategies, especially in poverty-stricken areas. This paper exercises the empirical study with the data information of Huining County. The rural households' capital index is constructed based on the sustainable livelihood framework. And the entropy method is used to calculate the livelihood asset value. We investigate the link between capital and livelihood strategies via the binomial logistic regression model. The results show that:(1) The index of human capital was the lowest among the livelihood capital of the rural households in the study area and the capital value of each livelihood is different. (2) Cash income in financial capital will significantly increase the probability of rural households choosing non-agricultural livelihood strategy. but natural capital (flat ground area), physical capital (durable consumer goods) and financial capital (financing channels) will significantly reduce the probability of rural households choosing non-agricultural livelihood strategy. (3) The robustness analysis further found that cash income still significantly increased the probability of choosing non-agricultural livelihood strategies for rural households with different degrees of cropland conversion, while the livelihood capital index that inhibited the two types of rural households from choosing non-agricultural livelihood strategies was different. Given the above aspects, the government can take several measures to improve the financial capital of rural households, and then change the non-agricultural livelihood willingness of rural households, so as to better solve the problem of poverty.

Key words: RFF policy, poverty-stricken areas, livelihood strategy, livelihood capital, sustainable livelihoods