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Impact Of Cooperatives Membership On Economy In Eastern Oromia: The Case Of Haramaya Agricultural Farmers Cooperative Union (Hafcu)

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  • Megersa DEBELA
  • Sisay DIRIBA
  • Hailemichael BEKELE

Abstract

This study attempts to analyse the impact of cooperatives on the smallholders income, productivity, marketed surplus and saving in East Hararghe Zone of Haramaya District. The study is based on primary cross-sectional data collected from cooperative member and non-cooperative member household heads. The propensity score matching (PSM) estimates complemented by a bias correction matching (BCM) and Lewbel instrumental variable (IV) regression estimation shows that cooperatives have a positive impact on smallholders income and productivity. The findings have strong policy implications. The rural development of the country should work toward strengthening and expanding the existing rural organizations through training and capacity building programmes. It is important particularly establishing new rural†based organizations that enable rural households to engage in business activities. Doing that may help reduce poverty and increase smallholders income, productivity, and capital accumulation.

Suggested Citation

  • Megersa DEBELA & Sisay DIRIBA & Hailemichael BEKELE, 2018. "Impact Of Cooperatives Membership On Economy In Eastern Oromia: The Case Of Haramaya Agricultural Farmers Cooperative Union (Hafcu)," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 89(2), pages 361-376, June.
    • Handle: RePEc:bla:annpce:v:89:y:2018:i:2:p:361-376
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    File URL: http://onlinelibrary.wiley.com/doi/10.1111/apce.2018.89.issue-2/issuetoc
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    Cited by:

    1. Ramesh C. Paudel & Chakra Pani Acharya, 2022. "Cooperatives and economic growth in a developing country: The case of Nepal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(3), pages 797-815, September.
    2. Junying Lin & Songqing Jin & Hongdong Guo, 2023. "Do outsourcing services provided by agricultural cooperatives affect technical efficiency? Insights from tobacco farmers in China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 781-804, September.

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