IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i23p13172-d689997.html
   My bibliography  Save this article

Analysis of the Effect of Cooperatives on Increasing Farmers’ Income from the Perspective of Industry Prosperity Based on the PSM Empirical Study in Shennongjia Region

Author

Listed:
  • Meiyuan Wang

    (Management School, South-Central University for Nationalities, Wuhan 430074, China)

  • Bin He

    (Management School, South-Central University for Nationalities, Wuhan 430074, China)

  • Jinsong Zhang

    (Management School, South-Central University for Nationalities, Wuhan 430074, China
    Research Center for Digital Development and Governance in Ethnic Regions, Wuhan 430074, China)

  • Yanan Jin

    (Management School, South-Central University for Nationalities, Wuhan 430074, China
    Research Center for Digital Development and Governance in Ethnic Regions, Wuhan 430074, China)

Abstract

“Industry prosperity”, as a key content of the Rural Revitalization Strategy, is an effective way to increase farmers’ income, agricultural development and rural prosperity. Cooperatives have the functions of serving, assisting and enriching the people and are an important organizational carrier for achieving rural industry prosperity. This paper uses the propensity score-matching model and the field survey data of Dajiuhu Town, Shennongjia, Hubei Province to study the effect of farmers’ participation in cooperatives on their net income by means of quantitative analysis. The empirical results show that (1) farmers’ participation in cooperatives can improve their net income level; (2) the education level of farmers has a significant effect on their participation in cooperatives; (3) household factors, production and management characteristics and external environment also have an important effect on farmers’ participation. Based on the above conclusions, this research proposes the encouragement of farmers to actively participate in cooperatives, improve their education level, vigorously improve rural infrastructure and enhance farmers’ self-development efficiency to promote the continuous increase of farmers’ incomes, and give rise to the positive role of cooperatives in rural development, in order to realize the revitalization and sustainable development of rural areas.

Suggested Citation

  • Meiyuan Wang & Bin He & Jinsong Zhang & Yanan Jin, 2021. "Analysis of the Effect of Cooperatives on Increasing Farmers’ Income from the Perspective of Industry Prosperity Based on the PSM Empirical Study in Shennongjia Region," Sustainability, MDPI, vol. 13(23), pages 1-18, November.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:13172-:d:689997
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/23/13172/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/13/23/13172/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:oup:apecpp:v:37:y:2015:i:1:p:86-106 is not listed on IDEAS
    2. Hisatoshi Hoken & Qun Su, 2018. "Measuring the effect of agricultural cooperatives on household income: Case study of a rice‐producing cooperative in China," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 831-846, October.
    3. Ito, Junichi & Bao, Zongshun & Su, Qun, 2012. "Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation," Food Policy, Elsevier, vol. 37(6), pages 700-709.
    4. Ma, Wanglin & Renwick, Alan & Yuan, Peng & Ratna, Nazmun, 2018. "Agricultural cooperative membership and technical efficiency of apple farmers in China: An analysis accounting for selectivity bias," Food Policy, Elsevier, vol. 81(C), pages 122-132.
    5. Ma, Wanglin & Abdulai, Awudu, 2016. "Does cooperative membership improve household welfare? Evidence from apple farmers in China," Food Policy, Elsevier, vol. 58(C), pages 94-102.
    6. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    7. Sebhatu, Kifle T. & Gezahegn, Tafesse W. & Berhanu, Tekeste & Maertens, Miet & Passel, Steven Van & D'Haese, Marijke, 2021. "Exploring variability across cooperatives: economic performance of agricultural cooperatives in northern Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), March.
    8. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    9. Schilling, Brian J. & Attavanich, Witsanu & Sullivan, Kevin P. & Marxen, Lucas J., 2014. "Measuring the effect of farmland preservation on farm profitability," MPRA Paper 100122, University Library of Munich, Germany, revised Jun 2014.
    10. Ellen Verhofstadt & Miet Maertens, 2015. "Can Agricultural Cooperatives Reduce Poverty? Heterogeneous Impact of Cooperative Membership on Farmers' Welfare in Rwanda," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(1), pages 86-106.
    11. Keele, Luke & Stevenson, Randolph T. & Elwert, Felix, 2020. "The causal interpretation of estimated associations in regression models," Political Science Research and Methods, Cambridge University Press, vol. 8(1), pages 1-13, January.
    12. Carlos Cinelli & Chad Hazlett, 2020. "Making sense of sensitivity: extending omitted variable bias," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 82(1), pages 39-67, February.
    13. Kumar, Anjani & Saroj, Sunil & Joshi, P.K. & Takeshima, Hiroyuki, 2018. "Does cooperative membership improve household welfare? Evidence from a panel data analysis of smallholder dairy farmers in Bihar, India," Food Policy, Elsevier, vol. 75(C), pages 24-36.
    14. Gashaw Tadesse ABATE & Gian Nicola FRANCESCONI & Kindie GETNET, 2014. "Impact Of Agricultural Cooperatives On Smallholders’ Technical Efficiency: Empirical Evidence From Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(2), pages 257-286, June.
    15. Eric Ofori & Gabriel S Sampson & Jessie Vipham, 2019. "The effects of agricultural cooperatives on smallholder livelihoods and agricultural performance in Cambodia," Natural Resources Forum, Blackwell Publishing, vol. 43(4), pages 218-229, November.
    16. Goldsmith, Arthur, 1985. "The private sector and rural development: Can agribusiness help the small farmer?," World Development, Elsevier, vol. 13(10-11), pages 1125-1138.
    17. Kindie GETNET & Tsegaye ANULLO, 2012. "Agricultural Cooperatives And Rural Livelihoods: Evidence From Ethiopia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(2), pages 181-198, June.
    18. Schilling, Brian J. & Attavanich, Witsanu & Jin, Yanhong, 2014. "Does Agritourism Enhance Farm Profitability?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-28, April.
    19. Adiqa Kausar Kiani & Asif Sardar & Wasim Ullah Khan & Yigang He & Abdulbaki Bilgic & Yasemin Kuslu & Muhammad Asif Zahoor Raja, 2021. "Role of Agricultural Diversification in Improving Resilience to Climate Change: An Empirical Analysis with Gaussian Paradigm," Sustainability, MDPI, vol. 13(17), pages 1-15, August.
    20. Gian Nicola Francesconi & Ruerd Ruben, 2012. "The Hidden Impact of Cooperative Membership on Quality Management: A Case Study from the Dairy Belt of Addis Ababa," Journal of Entrepreneurial and Organizational Diversity, European Research Institute on Cooperative and Social Enterprises, vol. 1(1), pages 85-103, December.
    21. Simmons, Richard & Birchall, Johnston, 2008. "The role of co-operatives in poverty reduction: Network perspectives," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2131-2140, December.
    22. Glover, David J., 1984. "Contract farming and smallholder outgrower schemes in less-developed countries," World Development, Elsevier, vol. 12(11-12), pages 1143-1157.
    23. Chagwiza, Clarietta & Muradian, Roldan & Ruben, Ruerd, 2016. "Cooperative membership and dairy performance among smallholders in Ethiopia," Food Policy, Elsevier, vol. 59(C), pages 165-173.
    24. Jasper Grashuis & Alexandre Magnier, 2018. "Product differentiation by marketing and processing cooperatives: A choice experiment with cheese and cereal products," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 813-830, October.
    25. John E. Meador & David J. O’Brien & Michael L. Cook & Greg Grothe & LuAnn Werner & Daniel Diang’a & Rebecca M. Savoie, 2016. "Building Sustainable Smallholder Cooperatives in Emerging Market Economies: Findings from a Five-Year Project in Kenya," Sustainability, MDPI, vol. 8(7), pages 1-15, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rimui Gloria Warucu & Moses Lufuke, 2024. "The Impact of Cooperative membership on Adoption of Modern Technology by Bee farmers in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3), pages 270-284, March.
    2. Jingpeng Chen & Desheng Zhang & Zhi Chen & Zhijian Li & Zigong Cai, 2022. "Effect of Agricultural Social Services on Green Production of Natural Rubber: Evidence from Hainan, China," Sustainability, MDPI, vol. 14(21), pages 1-16, October.
    3. Kongsen Wu & Dongyan Kong & Xinjun Yang, 2023. "The Impact of Rural Industrial Development on Farmers’ Livelihoods—Taking Fruit-Producing Area as an Example," Land, MDPI, vol. 12(8), pages 1-21, July.
    4. Nhan Quoc Tran & Thong Van Ngo & Nay Van Nguyen & Thanh Ngoc Duong & Can Duy Nguyen & Tu Duong Quach & De Van Le, 2022. "Impact of New-Type Agricultural Cooperatives on Profitability of Rice Farms: Evidence from Vietnam’s Mekong River Delta," Economies, MDPI, vol. 10(12), pages 1-15, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Huma Neupane & Krishna P. Paudel & Mandeep Adhikari & Qinying He, 2022. "Impact of cooperative membership on production efficiency of smallholder goat farmers in Nepal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(2), pages 337-356, June.
    3. Wanglin Ma & Hongyun Zheng & Yueji Zhu & Jianling Qi, 2022. "Effects of cooperative membership on financial performance of banana farmers in China: A heterogeneous analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 5-27, March.
    4. Musa Hasen Ahmed & Hiwot Mekonnen Mesfin, 2017. "The impact of agricultural cooperatives membership on the wellbeing of smallholder farmers: empirical evidence from eastern Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-20, December.
    5. Lin, Bin & Wang, Xiaoxi & Jin, Songqing & Yang, Wanjiang & Li, Houjian, 2022. "Impacts of cooperative membership on rice productivity: Evidence from China," World Development, Elsevier, vol. 150(C).
    6. Jasper GRASHUIS & Ye SU, 2019. "A Review Of The Empirical Literature On Farmer Cooperatives: Performance, Ownership And Governance, Finance, And Member Attitude," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 77-102, March.
    7. Yi Qu & Jing Zhang & Zhenning Wang & Xinning Ma & Guangcheng Wei & Xiangzhi Kong, 2023. "The Future of Agriculture: Obstacles and Improvement Measures for Chinese Cooperatives to Achieve Sustainable Development," Sustainability, MDPI, vol. 15(2), pages 1-22, January.
    8. Ahmet Candemir & Sabine Duvaleix & Laure Latruffe, 2021. "Agricultural Cooperatives And Farm Sustainability – A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1118-1144, September.
    9. Lei Wu & Chuanjian Li & Yang Gao, 2022. "Regional agricultural cooperatives and subjective wellbeing of rural households in China," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 138-158, November.
    10. Liyan Yu & Jerker Nilsson & Feng Zhan & Song Cheng, 2023. "Social Capital in Cooperative Memberships and Farmers’ Access to Bank Credit–Evidence from Fujian, China," Agriculture, MDPI, vol. 13(2), pages 1-18, February.
    11. Kuhle Prudence Mnisi & Abdul Latif Alhassan, 2021. "Financial structure and cooperative efficiency: A pecking‐order evidence from sugarcane farmers in Eswatini," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 261-281, June.
    12. Wanglin Ma & Hongyun Zheng & Peng Yuan, 2022. "Impacts of cooperative membership on banana yield and risk exposure: Insights from China," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 564-579, June.
    13. Guoqiang Liu & Dakuan Qiao & Yuying Liu & Xinhong Fu, 2022. "Does Service Utilization Improve Members’ Welfare? Evidence from Citrus Cooperatives in China," Sustainability, MDPI, vol. 14(11), pages 1-20, May.
    14. Adjin, K. Christophe & Goundan, Anatole & Henning, Christian H. C. A. & Sarr, Saer, 2020. "Estimating the impact of agricultural cooperatives in Senegal: Propensity score matching and endogenous switching regression analysis," Working Papers of Agricultural Policy WP2020-10, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    15. Yuanyuan Peng & H. Holly Wang & Yueshu Zhou, 2022. "Can cooperatives help commercial farms to access credit in China? Evidence from Jiangsu Province," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 70(4), pages 325-349, December.
    16. Gezahegn, Tafesse & Van Passel, Steven & Berhanu, Tekeste & D'Haese, Marijke & Maertens, Miet, 2020. "Structural and Institutional Heterogeneity among Agricultural Cooperatives in Ethiopia: Does it Matter for Farmers’ Welfare?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 46(2), August.
    17. Eric Ofori & Gabriel S Sampson & Jessie Vipham, 2019. "The effects of agricultural cooperatives on smallholder livelihoods and agricultural performance in Cambodia," Natural Resources Forum, Blackwell Publishing, vol. 43(4), pages 218-229, November.
    18. Manda, Julius & Khonje, Makaiko G. & Alene, Arega D. & Tufa, Adane H & Abdoulaye, Tahirou & Mutenje, Munyaradzi & Setimela, Peter & Manyong, Victor, 2020. "Does cooperative membership increase and accelerate agricultural technology adoption? Empirical evidence from Zambia," Technological Forecasting and Social Change, Elsevier, vol. 158(C).
    19. Ji, Chen & Jin, Songqing & Wang, Haitao & Ye, Chunhui, 2019. "Estimating effects of cooperative membership on farmers’ safe production behaviors: Evidence from pig sector in China," Food Policy, Elsevier, vol. 83(C), pages 231-245.
    20. Federica Di Marcantonio & Enkelejda Havari & Liesbeth Colen & Pavel Ciaian, 2022. "Do producer organizations improve trading practices and negotiation power for dairy farms? Evidence from selected EU countries," Agricultural Economics, International Association of Agricultural Economists, vol. 53(S1), pages 121-137, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:13172-:d:689997. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.