IDEAS home Printed from https://ideas.repec.org/p/trn/utwpeu/1350.html
   My bibliography  Save this paper

Impact of agricultural cooperatives on smallholders' technical efficiency: evidence from Ethiopia

Author

Listed:
  • Gashaw Tadesse Abate
  • Gian Nicola Francesconi
  • Gian Nicola Francesconi

Abstract

Using household survey data from Ethiopia, this paper evaluates the impact of agricultural cooperatives on smallholders technical efficiency. We utilize propensity score matching to compare the average difference in technical efficiency between cooperative farmers and similar independent farmers. The approach assumes exogenous cooperative formation and similar farm technology across households. The results show that agricultural cooperatives are effective in providing support services that significantly contribute to members technical efficiency. These results are found to be insensitive to hidden bias and consistent with the idea that agricultural cooperatives enhance members efficiency by easing access to productive inputs and facilitating extension linkages. Based on the findings, increased participation in agricultural cooperatives should further enhance efficiency gains among smallholder farmers.

Suggested Citation

  • Gashaw Tadesse Abate & Gian Nicola Francesconi & Gian Nicola Francesconi, 2013. "Impact of agricultural cooperatives on smallholders' technical efficiency: evidence from Ethiopia," Euricse Working Papers 1350, Euricse (European Research Institute on Cooperative and Social Enterprises).
    • Handle: RePEc:trn:utwpeu:1350
    as

    Download full text from publisher

    File URL: https://www.euricse.eu/publications/wp-5013-impact-of-agricultural-cooperatives-on-smallholders-technical-efficiency-evidence-from-ethiopia/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. James J. Heckman & Hidehiko Ichimura & Petra E. Todd, 1997. "Matching As An Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(4), pages 605-654.
    3. 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.
    4. Abebaw, Degnet & Haile, Mekbib G., 2013. "The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia," Food Policy, Elsevier, vol. 38(C), pages 82-91.
    5. Sascha O. Becker & Marco Caliendo, 2007. "Sensitivity analysis for average treatment effects," Stata Journal, StataCorp LP, vol. 7(1), pages 71-83, February.
    6. Fabio R. Chaddad & Michael L. Cook & Thomas Heckelei, 2005. "Testing for the Presence of Financial Constraints in US Agricultural Cooperatives: An Investment Behaviour Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 385-397, December.
    7. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    8. Godtland, Erin M & Sadoulet, Elisabeth & De Janvry, Alain & Murgai, Rinku & Ortiz, Oscar, 2004. "The Impact of Farmer Field Schools on Knowledge and Productivity: A Study of Potato Farmers in the Peruvian Andes," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 63-92, October.
    9. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
    10. Tanguy Bernard & Alemayehu Seyoum Taffesse & Eleni Gabre‐Madhin, 2008. "Impact of cooperatives on smallholders' commercialization behavior: evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 147-161, September.
    11. Wanyama, Fredrick. & Develtere, Patrick. & Pollet, Ignace., 2009. "Reinventing the wheel? African cooperatives in a liberalized economic environment," ILO Working Papers 995017393002676, International Labour Organization.
    12. Wanyama, Fredrick O. & Develtere, Patrick. & Pollet, Ignace., 2009. "Reinventing the wheel? : African cooperatives in a liberalized economic environment," ILO Working Papers 994346793402676, International Labour Organization.
    13. repec:ilo:ilowps:434679 is not listed on IDEAS
    14. Spielman, David J. & Mekonnen, Dawit Kelemework & Alemu, Dawit, 2012. "Seed, fertilizer, and agricultural extension in Ethiopia," IFPRI book chapters, in: Dorosh, Paul A. & Rashid, Shahidur (ed.), Food and agriculture in Ethiopia: Progress and policy challenges, chapter 4, International Food Policy Research Institute (IFPRI).
    15. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    16. Bernard, Tanguy & Spielman, David J., 2009. "Reaching the rural poor through rural producer organizations? A study of agricultural marketing cooperatives in Ethiopia," Food Policy, Elsevier, vol. 34(1), pages 60-69, February.
    17. Bernard, Tanguy & Gabre-Madhin, Eleni Z. & Taffesse, Alemayehu Seyoum, 2008. "Heterogeneous Impacts Of Cooperatives On Smallholders’ Commercialization Behavior: Evidence From Ethiopia," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52161, African Association of Agricultural Economists (AAAE).
    18. Staatz, John M., 1989. "Farmer Cooperative Theory: Recent Developments," Research Reports 52017, United States Department of Agriculture, Rural Development.
    19. Condon, Andrew M. & Cotterill, Ronald W. & Rhodes, V. James & Shaffer, James D. & Staatz, John M., 1987. "Cooperative Theory: New Approaches," Service Reports (SR) 280614, United States Department of Agriculture, Rural Development.
    20. Bernard, Tanguy & Spielman, David J. & Seyoum Taffesse, Alemayehu & Gabre-Madhin, Eleni Z., 2010. "Cooperatives for staple crop marketing: Evidence from Ethiopia," Research reports 164, International Food Policy Research Institute (IFPRI).
    21. James Heckman & Hidehiko Ichimura & Jeffrey Smith & Petra Todd, 1998. "Characterizing Selection Bias Using Experimental Data," Econometrica, Econometric Society, vol. 66(5), pages 1017-1098, September.
    22. Rodrigo, Maria F., 2012. "Do cooperatives help the poor? Evidence from Ethiopia," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124388, Agricultural and Applied Economics Association.
    23. Francesconi, Gian Nicola & Ruben, Ruerd, 2007. "Impacts of Collective Action on Smallholders' Commercialisation: Evidence from Dairy in Ethiopia," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9418, European Association of Agricultural Economists.
    24. Fredrick O. Wanyama & Patrick Develtere & Ignace Pollet, 2009. "Reinventing The Wheel? African Cooperatives In A Liberalized Economic Environment," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(3), pages 361-392, September.
    25. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    26. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    27. Gian Nicola Francesconi & Nico Heerink, 2011. "Ethiopian Agricultural Cooperatives in an Era of Global Commodity Exchange: Does Organisational Form Matter?," Journal of African Economies, Centre for the Study of African Economies, vol. 20(1), pages 153-177, January.
    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. Lamptey, Clement Y. & Sulemana, Nashiru & Donkoh, Samuel A. & Zakaria, Abraham & Azumah, Shaibu Baanni, 2022. "The Effect Of Adoption Of Improved Varieties On Rice Productivity In The Northern Region Of Ghana," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 25(1), March.
    2. Martinson Ankrah Twumasi & Dennis Asante & Jesse Nuamah Brako & Zhao Ding & Yuansheng Jiang, 2023. "The Relationship between Chronic Non-Communicable Diseases of Fish Farm Household Members and Production Efficiency: The Case of Ghana," IJERPH, MDPI, vol. 20(5), pages 1-13, February.
    3. Onuoha & Onyekachi Chibueze, 2023. "Comparative Study of the Agro-Innovation Adoption among Members and Non-Members of Agricultural Cooperatives in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(10), pages 1263-1276, October.
    4. Qian Liu & Yongmu Jiang & Carl‐Johan Lagerkvist & Wei Huang, 2023. "Extension services and the technical efficiency of crop‐specific farms in China," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(1), pages 436-459, March.

    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. Abate, G. T., 2013. "Impact of agricultural cooperatives on smallholders\u2019 technical efficiency: evidence from Ethiopia," IWMI Working Papers H045831, International Water Management Institute.
    2. 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.
    3. Margitta Minah, 2022. "What is the influence of government programs on farmer organizations and their impacts? Evidence from Zambia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 29-53, March.
    4. Mojo, Dagne & Fischer, Christian & Degefa, Terefe, 2015. "Who benefits from collective action? Determinants and economic impacts of coffee farmer cooperatives in Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 211889, International Association of Agricultural Economists.
    5. 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.
    6. Kifle T. Sebhatu & Fatemeh Taheri & Tekeste Berhanu & Miet Maertens & Steven Van Passel & Marijke D'Haese, 2021. "Beyond focus: Exploring variability of service provision of agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 207-231, June.
    7. Abebaw, Degnet & Haile, Mekbib G., 2013. "The impact of cooperatives on agricultural technology adoption: Empirical evidence from Ethiopia," Food Policy, Elsevier, vol. 38(C), pages 82-91.
    8. Shumeta, Zekarias & D'Haese, Marijke, 2016. "Do coffee cooperatives benefit farmers? An exploration of heterogeneous impact of coffee cooperative membership in Southwest Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), August.
    9. Biggeri, Mario & Burchi, Francesco & Ciani, Federico & Herrmann, Raoul, 2018. "Linking small-scale farmers to the durum wheat value chain in Ethiopia: Assessing the effects on production and wellbeing," Food Policy, Elsevier, vol. 79(C), pages 77-91.
    10. Mario Biggeri & Federico Ciani & Andrea Ferrannini, 2017. "Aid Effectiveness and Multilevel Governance: The Case of a Value Chain Development Project in Rural Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(4), pages 843-865, August.
    11. Verhofstadt, Ellen & Maertens, Miet, 2013. "Cooperative membership and agricultural performance: Evidence from Rwanda," Working Papers 157389, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    12. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    13. Johar, Meliyanni, 2009. "The impact of the Indonesian health card program: A matching estimator approach," Journal of Health Economics, Elsevier, vol. 28(1), pages 35-53, January.
    14. Bagnoli, Lisa, 2019. "Does health insurance improve health for all? Heterogeneous effects on children in Ghana," World Development, Elsevier, vol. 124(C), pages 1-1.
    15. Adjin, K. Christophe & Henning, Christian H. C. A., 2019. "Farmers organizations and food availability in Senegal: An impact analysis using a spatial econometrics approach," Working Papers of Agricultural Policy WP2019-07, University of Kiel, Department of Agricultural Economics, Chair of Agricultural Policy.
    16. Ellen Verhofstadt & Miet Maertens, 2014. "Smallholder cooperatives and agricultural performance in Rwanda: do organizational differences matter?," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 39-52, November.
    17. Ingutia, Rose & Sumelius, John, 2021. "Do farmer groups improve the situation of women in agriculture in rural Kenya?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(1), June.
    18. David L. Ortega & Aniseh S. Bro & Daniel C. Clay & Maria Claudia Lopez & Espoir Tuyisenge & Ruth Ann Church & Alfred R. Bizoza, 2019. "Cooperative membership and coffee productivity in Rwanda’s specialty coffee sector," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 967-979, August.
    19. 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).
    20. Dettmann, E. & Becker, C. & Schmeißer, C., 2011. "Distance functions for matching in small samples," Computational Statistics & Data Analysis, Elsevier, vol. 55(5), pages 1942-1960, May.

    More about this item

    Keywords

    Agricultural cooperatives; smallholder farmers; technical efficiency; Ethiopia.;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

    Statistics

    Access and download statistics

    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:trn:utwpeu:1350. 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: Barbara Franchini (email available below). General contact details of provider: https://edirc.repec.org/data/euricit.html .

    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.