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The Impact of Quasi-Integrated Agricultural Organizations on Farmers’ Production Efficiency: Evidence from China

Author

Listed:
  • Sun Dapeng

    (School of Marxism, Dalian Maritime University, Dalian, 116026, China)

  • Wang Haoran

    (Library Literature Resources Department, Tongliao Vocational College, Tongliao, 028000, China)

  • Ma Jun

    (School of Marxism, Dongbei University of Finance and Economics, Dalian, 116025, China)

  • Zhang Hongye

    (School of Marxism, Dongbei University of Finance and Economics, Dalian, 116025, China)

Abstract

Although vertically integrated agricultural industry organizations play a crucial role in bridging the gap between smallholders and large markets, the uneven distribution of benefits within such organizations remains a challenge. Drawing on decades of agricultural reform in China, a quasi-integrated organizational model has emerged that preserves farmers’ autonomy in production and management while achieving factor integration through contractual services, thereby enhancing production efficiency. This study uses household-level data (n = 1,876) collected between 2015 and 2022 from five major agricultural provinces – Jilin, Liaoning, Shandong, Henan, and Sichuan – to examine the heterogeneous effects of quasi-integrated organizations on farm efficiency through a Multinomial Choice Model. The findings indicate that participation in quasi-integrated organizations significantly improves production efficiency, particularly among cash-crop growers, farmers in eastern and central regions, and those without prior technical training. These results suggest that governments should adopt targeted and differentiated agricultural policies to promote scientific management and optimize labor allocation.

Suggested Citation

  • Sun Dapeng & Wang Haoran & Ma Jun & Zhang Hongye, 2025. "The Impact of Quasi-Integrated Agricultural Organizations on Farmers’ Production Efficiency: Evidence from China," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 19(1), pages 1-22.
    • Handle: RePEc:bpj:econoa:v:19:y:2025:i:1:p:22:n:1003
    DOI: 10.1515/econ-2025-0173
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    References listed on IDEAS

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    1. Birhanu A. Adamie & Tomas Balezentis & Mette Asmild, 2019. "Environmental Production Factors and Efficiency of Smallholder Agricultural Households: Using Non‐parametric Conditional Frontier Methods," Journal of Agricultural Economics, Wiley Blackwell, vol. 70(2), pages 471-487, June.
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