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A Two-Step Econometric Estimation of Covariates of Side Selling: The Case of Coffee Cooperatives in Southwest Ethiopia

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  • Zekarias Shumeta
  • Marijke D’Haese
  • Wim Verbeke

Abstract

Despite their apparent economic benefit to smallholder farmers, cooperatives are vulnerable to the problem of side selling. Using cross-sectional household data and Cragg’s regression model, we identified the determinants of side selling by coffee cooperative farmers in southwest Ethiopia. The bootstrapping technique was applied to extract average partial effects from the model coefficients. Certified, elder and educated farmers who have off-farm income and trust in the cooperative leadership have been found to side-sell significantly less. Nonetheless, cooperative group size and late payment favoured more side selling. Based on these findings, possible interventions are highlighted for improving cooperative members’ commitment and the performance of coffee cooperatives in the region.

Suggested Citation

  • Zekarias Shumeta & Marijke D’Haese & Wim Verbeke, 2018. "A Two-Step Econometric Estimation of Covariates of Side Selling: The Case of Coffee Cooperatives in Southwest Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 54(10), pages 1775-1791, October.
    • Handle: RePEc:taf:jdevst:v:54:y:2018:i:10:p:1775-1791
    DOI: 10.1080/00220388.2017.1324146
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    Cited by:

    1. Yang Zou & Qingbin Wang, 2022. "Impacts of farmer cooperative membership on household income and inequality: Evidence from a household survey in China," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-17, December.
    2. Anne Wambui Mumbi & Tsunemi Watanabe, 2021. "Willingness to Pay and Participate in Improved Water Quality by Lay People and Factory Workers: A Case Study of River Sosiani, Eldoret Municipality, Kenya," Sustainability, MDPI, vol. 13(4), pages 1-30, February.

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