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Value added and governance structure: Evidence from the pear industry in China's Zhejiang province

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  • Liang, Qiao
  • Hendrikse, George W. J.
  • Huang, Zuhui
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    Abstract

    Traditional farmer cooperatives, new generation farmer cooperatives, and investor-owned firms (IOFs), are compared regarding their value added and value added rate in terms of product marketing. The results of the analysis regarding the pear supply chain in Zhejiang province in China indicate that IOFs obtain a higher value added or value added rate than farmer cooperatives. New generation cooperatives mitigate the under-investment problem of traditional cooperatives in a certain extent. However, farmer cooperatives have some advantages over investor-owned firms in benefiting farmers. --

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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 52708.

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    Date of creation: 2010
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    Handle: RePEc:zbw:iamo10:52708

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    Keywords: Farmer cooperatives; Investor-owned firms; Value added;

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    1. Bingen, Jim & Serrano, Alex & Howard, Julie, 2003. "Linking farmers to markets: different approaches to human capital development," Food Policy, Elsevier, Elsevier, vol. 28(4), pages 405-419, August.
    2. Svend Albæk & Christian Schultz, 1997. "One cow, one vote?," CIE Discussion Papers, University of Copenhagen. Department of Economics. Centre for Industrial Economics 1997-01, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
    3. Herbst, P. & Prüfer, J., 2007. "Firms, Nonprofits, and Cooperatives: A Theory of Organizational Choice," Discussion Paper, Tilburg University, Center for Economic Research 2007-7, Tilburg University, Center for Economic Research.
    4. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 26(2), pages 301-25, June.
    5. George W. J. Hendrikse, 1998. "Screening, Competition and the Choice of the Cooperative as an Organisational Form," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 49(2), pages 202-217.
    6. Joseph J. Spengler, 1950. "Vertical Integration and Antitrust Policy," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 58, pages 347.
    7. Parliament, Claudia & Lerman, Zvi & Fulton, Joan R., 1990. "Performance of Cooperatives and Investor-Owned Firms in the Dairy Industry," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, National Council of Farmer Cooperatives, vol. 5.
    8. Chaddad, Fabio Ribas & Cook, Michael L., 2002. "An Ownership Rights Typology Of Cooperative Models," Working Papers, University of Missouri Columbia, Department of Agricultural Economics 26032, University of Missouri Columbia, Department of Agricultural Economics.
    9. George W. J. Hendrikse & Cees P. Veerman, 2001. "Marketing Co-operatives: An Incomplete Contracting Perspective," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 52(1), pages 53-64.
    10. Oliver Hart & Sanford Grossman, 1985. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 372, Massachusetts Institute of Technology (MIT), Department of Economics.
    11. Kostas Karantininis & Angelo Zago, 2001. "Endogenous Membership in Mixed Duopsonies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, Agricultural and Applied Economics Association, vol. 83(5), pages 1266-1272.
    12. Hendrikse, George W. J. & Veerman, Cees P., 2001. "Marketing cooperatives and financial structure: a transaction costs economics analysis," Agricultural Economics, Blackwell, Blackwell, vol. 26(3), pages 205-216, December.
    13. Hendrikse, George W.J. & Veerman, Cees P., 2001. "Marketing cooperatives and financial structure: a transaction costs economics analysis," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 26(3), December.
    14. Valentinov, Vladislav, 2007. "Why are cooperatives important in agriculture? An organizational economics perspective," Journal of Institutional Economics, Cambridge University Press, Cambridge University Press, vol. 3(01), pages 55-69, April.
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