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Do Farmer Professional Cooperatives Improve Technical Efficiency and Income? Evidence from Small Vegetable Farms in China

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  • Dong, Ying
  • Mu, Yueying
  • Abler, David

Abstract

China’s small-scale agricultural producers face many challenges to increasing productivity and efficiency. In recent years, the Chinese government has provided support for farmer professional cooperatives (FPCs) to connect small farms with upstream and downstream processes in the food supply chain. This study combines propensity score matching and sample selection-corrected stochastic production frontier analysis to estimate the impacts of FPC participation by greenhouse vegetable producers on technical efficiency and income. Results indicate that FPCs help participants improve returns to scale and marginal returns to land and labor, increase technical efficiency, and obtain ¥4,460 (18%) greater income per greenhouse than nonparticipants.

Suggested Citation

  • Dong, Ying & Mu, Yueying & Abler, David, 2019. "Do Farmer Professional Cooperatives Improve Technical Efficiency and Income? Evidence from Small Vegetable Farms in China," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(4), pages 591-605, November.
    • Handle: RePEc:cup:jagaec:v:51:y:2019:i:04:p:591-605_00
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    Cited by:

    1. Neubauer, Florian & Songsermsawas, Tisorn & Kámiche-Zegarra, Joanna & Bravo-Ureta, Boris E., 2022. "Technical efficiency and technological gaps correcting for selectivity bias: Insights from a value chain project in Nepal," Food Policy, Elsevier, vol. 112(C).
    2. Wanglin Ma & Sanghyun Hong & W. Robert Reed & Jianhua Duan & Phong Luu, 2023. "Yield effects of agricultural cooperative membership in developing countries: A meta‐analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 761-780, September.
    3. Zheng, Hongyun & Ma, Wanglin & Wang, Fang & Li, Gucheng, 2021. "Does internet use improve technical efficiency of banana production in China? Evidence from a selectivity-corrected analysis," Food Policy, Elsevier, vol. 102(C).
    4. Tleubayev, Alisher & Bobojonov, Ihtiyor & Götz, Linde, 2022. "Agricultural policies and technical efficiency of wheat production in Kazakhstan and Russia: Evidence from a stochastic frontier approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 54(3), pages 407-421.
    5. Li, Xinyi & Ito, Junichi, 2023. "Determinants of technical efficiency and farmers’ crop choice rationality: A case study of rural Gansu, China," Journal of Asian Economics, Elsevier, vol. 84(C).
    6. Phuc Trong Ho & Pham Xuan Hung & Nguyen Duc Tien, 2023. "Effects of varieties and seasons on cost efficiency in rice farming: A stochastic metafrontier approach," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society, vol. 13(2), pages 120-129.
    7. Guangyan Ran & Guangyao Wang & Huijuan Du & Mi Lv, 2023. "Relationship of Cooperative Management and Green and Low-Carbon Transition of Agriculture and Its Impacts: A Case Study of the Western Tarim River Basin," Sustainability, MDPI, vol. 15(11), pages 1-18, May.

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