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Centralized versus individual: Governance of farmer professional cooperatives in China

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  • Jia, Xiangping
  • Hu, Yamei
  • Hendrikse, George
  • Huanga, Jikun

Abstract

Based on a national representative survey conducted in 2009, this study shows that the decision-making within Farmer Professional Cooperatives (FPCs) in China is decentralized to individual farmers. However, there is a trend that the decision rights of farming are decomposed to marketing, production and input procuring. While the rights for production and input procuring stay with family farmers, marketing rights tend to be collectivized. Compared to FPCs having external initiating sources, FPCs initiated by farmers are more inclined to introduce centralized decision-making. The governance structure of FPCs in transition China presents hybrid forms of both hierarchy and family farming. --

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Bibliographic Info

Paper provided by Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO) in its series IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance with number 52699.

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Date of creation: 2010
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Handle: RePEc:zbw:iamo10:52699

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Keywords: Farmer; Cooperatives; Governance; China;

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  1. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
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  7. Choi, E. Kwan & Feinerman, Eli, 1993. "Producer Cooperatives, Input Pricing and Land Allocation," Staff General Research Papers 598, Iowa State University, Department of Economics.
  8. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
  9. Hendrikse, George W. J. & Veerman, Cees P., 2001. "Marketing cooperatives and financial structure: a transaction costs economics analysis," Agricultural Economics, Blackwell, vol. 26(3), pages 205-216, December.
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