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Do Institutional Incentives Matter for Farmers to Join Cooperatives: A Comparison of Two Chinese Regions

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  • Sultan, Tursinbek
  • Larsen, Karin

Abstract

This paper analyzes Chinese farmers’ participation in agricultural cooperatives. Special focus is placed on the country’s cultural and institutional background and its impact on cooperatives’ governance structure. The impact of differences in regional economic and social development and the need for formal institutions and democratic governance of farmers’ organizations are also examined. The empirical analysis utilizes survey data from 373 agricultural cooperative members in two provinces in China of differing economic development levels: the western, less developed region Sichuan, and the well developed region Zhejiang on the eastern coast. Hypotheses regarding differences between the two regions, aimed to target each of the four levels of social organization discussed by Williamson (2000), are formulated and tested.

Suggested Citation

  • Sultan, Tursinbek & Larsen, Karin, 2011. "Do Institutional Incentives Matter for Farmers to Join Cooperatives: A Comparison of Two Chinese Regions," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 39(1), pages 1-18.
    • Handle: RePEc:ags:jlorco:163916
    DOI: 10.22004/ag.econ.163916
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    References listed on IDEAS

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    1. Hansen, Mark H. & Morrow, J.L., Jr. & Batista, Juan C., 2002. "The Impact Of Trust On Cooperative Membership Retention, Performance, And Satisfaction: An Exploratory Study," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 5(1), pages 1-19.
    2. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    3. Dinghuan Hu & Thomas Reardon & Scott Rozelle & Peter Timmer & Honglin Wang, 2004. "The Emergence of Supermarkets with Chinese Characteristics: Challenges and Opportunities for China's Agricultural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 557-586, September.
    4. Hendrikse, G., 2006. "Challenges facing Agricultural Cooperatives: Heterogeneity and Consolidation," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 41, March.
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    Cited by:

    1. Lin Li & Hongdong Guo & Jos Bijman & Nico Heerink, 2018. "The influence of uncertainty on the choice of business relationships: The case of vegetable farmers in China," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 597-615, June.
    2. Sultan, Tursinbek & Wolz, Axel, 2012. "Agricultural Cooperative Development in China and Vietnam since Decollectivization: A Multi-Stakeholder Approach," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 40(2), pages 1-21.

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