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Determinants of Producers' Participation in Agricultural Cooperatives: Evidence from Northern China

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  • Shi Zheng
  • Zhigang Wang
  • Titus O. Awokuse

Abstract

Agricultural producer cooperatives are of great significance to the development of agricultural productivity and can provide improved economic welfare benefits to farmers. However, such organizations have not been well-developed in China. While China's new Cooperatives Law of 2007 has generated interest among scholars, very few empirical analyses have focused on the role of cooperatives in China's agricultural sector. The main objective of this study is to investigate the determinants of farmers' perception and their decision to participate in cooperatives, using a unique dataset from recently collected survey data of farming households in China's Jilin Province. The empirical results from probit and logit regression models suggest that educational attainment, risk comfort level, farm expansion, operational costs, geographic location and crop types are significant factors that influence producers' perception of cooperatives, as well as their participation behavior.

Suggested Citation

  • Shi Zheng & Zhigang Wang & Titus O. Awokuse, 2012. "Determinants of Producers' Participation in Agricultural Cooperatives: Evidence from Northern China," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 34(1), pages 167-186.
    • Handle: RePEc:oup:apecpp:v:34:y:2012:i:1:p:167-186.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppr044
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    Cited by:

    1. Liu, H. & Deng, H. & Xu, Z. & Lu, W., 2018. "Emerging Agricultural Cooperatives and The Structural Change of Crop Production in China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277324, International Association of Agricultural Economists.
    2. 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.
    3. Stefano Ciliberti & Angelo Frascarelli & Gaetano Martino, 2020. "Drivers of participation in collective arrangements in the agri‐food supply chain. Evidence from Italy using a transaction costs economics perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 387-409, September.
    4. 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).
    5. Aristotelis Batzios & Achilleas Kontogeorgos & Fotios Chatzitheodoridis & Panagiota Sergaki, 2021. "What Makes Producers Participate in Marketing Cooperatives? The Northern Greece Case," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    6. Bobjonov, I. & Teuber, R., 2018. "Participation in formal and informal cooperation and its effect on productivity in Central Asia: Empirical evidence from Uzbekistan," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276002, International Association of Agricultural Economists.
    7. 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.
    8. Pham Quoc Hung & Huynh Viet Khai, 2020. "Transaction cost, price risk perspective and marketing channel decision of small-scale chili farmers in Tra Vinh Province, Vietnam," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 10(1), pages 68-80, June.
    9. Nlerum, Franklin E. & Ogu, Patience I., 2014. "Role of Farmers' Cooperative Societies in Rural Development in Nigeria," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 42(2), pages 1-10.
    10. Dinesh Dhakal & David O’Brien & Peter Mueser, 2021. "Government Policy and Performance of Agricultural Cooperatives: A Case Study in Chitwan District, Nepal," Sustainability, MDPI, vol. 13(21), pages 1-20, November.
    11. Nalin Wu & Erling Li & Yihan Su & Li Li & Li Wang, 2022. "Social Capital, Crop Specialization and Rural Industry Development—Taking the Grape Industry in Ningling County of China as an Example," Land, MDPI, vol. 11(7), pages 1-22, July.
    12. Benmehaia, Mohamed Amine & Brabez, Fatima, 2016. "The Propensity To Cooperate Among Peasant Farmers In Algeria: An Analysis From Bivariate Approach," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(4), pages 1-14, October.
    13. Wanglin Ma & Awudu Abdulai, 2017. "The economic impacts of agricultural cooperatives on smallholder farmers in rural China," Agribusiness, John Wiley & Sons, Ltd., vol. 33(4), pages 537-551, September.
    14. James Wangu & Ellen Mangnus & A. C. M. (Guus) van Westen, 2021. "Recognizing Determinants to Smallholders’ Market Orientation and Marketing Arrangements: Building on a Case of Dairy Farming in Rural Kenya," Land, MDPI, vol. 10(6), pages 1-16, May.
    15. Xiangyu Wu & Yunlong Ding, 2018. "The Service Supply Effect of Cooperatives under Economic Transformation: A Demand-Supply Perspective," Sustainability, MDPI, vol. 10(9), pages 1-18, August.
    16. 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).
    17. Zhang, Xingping & Luo, Kaiyan & Tan, Qinliang, 2016. "A feedstock supply model integrating the official organization for China's biomass generation plants," Energy Policy, Elsevier, vol. 97(C), pages 276-290.
    18. Michalek, Jerzy & Ciaian, Pavel & Pokrivcak, Jan, 2018. "The impact of producer organizations on farm performance: The case study of large farms from Slovakia☆," Food Policy, Elsevier, vol. 75(C), pages 80-92.
    19. Lin Li & Hongdong Guo, 2019. "The impact of business relationships on safe production behavior by farmers: Evidence from China," Agribusiness, John Wiley & Sons, Ltd., vol. 35(1), pages 84-96, January.
    20. Wang, Zhenhua & Liu, Qiaochu & Yang, Jian & Jiang, Jinqi, 2021. "Can Technology Demonstration Promote Rural Households’ Adoption of Conservation Tillage in the Main Grain-Producing Areas of China?," 2021 Conference, August 17-31, 2021, Virtual 315171, International Association of Agricultural Economists.
    21. 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.
    22. Jan Falkowski & Pavel Ciaian, 2016. "Factors Supporting the Development of Producer Organizations and their Impacts in the Light of Ongoing Changes in Food Supply Chains: A Literature Review," JRC Research Reports JRC101617, Joint Research Centre.

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