IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation

  • Ito, Junichi
  • Bao, Zongshun
  • Su, Qun
Registered author(s):

    This paper examines the treatment effects of the agricultural cooperative and publicly funded extension services on individual household economy, using data collected by the author from watermelon-producing farm households in rural Nanjing. The cooperative addressed in this study restricts the participation of small-scale farmers, implying that selection into the program must be taken into consideration for an accurate assessment of the treatment effect. The econometric analysis revealed that government extension services have a modest effect on farm income. In contrast, the treatment effect of the agricultural cooperative is robust and substantially large, accounting for nearly 70% of the pre-matching difference. This suggests that the agricultural cooperative system is an important avenue for farmers to improve their economic status. The treatment effect of the agricultural cooperative is highly heterogeneous; the economic benefits arising from the cooperative are significant only for small-scale farms. We can argue that a coexistence of smallholder exclusion and the treatment effect in favor of small-scale farms poses serious challenges to pro-poor agricultural growth in China.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/pii/S0306919212000838
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Food Policy.

    Volume (Year): 37 (2012)
    Issue (Month): 6 ()
    Pages: 700-709

    as
    in new window

    Handle: RePEc:eee:jfpoli:v:37:y:2012:i:6:p:700-709
    Contact details of provider: Web page: http://www.elsevier.com/locate/foodpol

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, vol. 28(1), pages 39-50, January.
    2. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2007. "Impact of contract farming on income: Linking small farmers, packers, and supermarket in China," IFPRI discussion papers 742, International Food Policy Research Institute (IFPRI).
    3. Ichino, Andrea & Mealli, Fabrizia & Nannicini, Tommaso, 2006. "From Temporary Help Jobs to Permanent Employment: What Can We Learn from Matching Estimators and their Sensitivity?," CEPR Discussion Papers 5736, C.E.P.R. Discussion Papers.
    4. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity score matching methods for non-experimental causal studies," Discussion Papers 0102-14, Columbia University, Department of Economics.
    5. Swinnen, Johan F.M., 2009. "Reforms, Globalization, and Endogenous Agricultural Structures," 111th Seminar, June 26-27, 2009, Canterbury, UK 52802, European Association of Agricultural Economists.
    6. Michael White & John Killeen, 2002. "The effect of careers guidance for employed adults on continuing education: assessing the importance of attitudinal information," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(1), pages 83-95.
    7. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
    8. Swinnen, Johan F.M. & Maertens, Miet, 2006. "Globalization, Privatization, and Vertical Coordination in Food Value Chains in Developing and Transition Countries," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25626, International Association of Agricultural Economists.
    9. Henson, Spencer & Masakure, Oliver & Cranfield, John, 2011. "Do Fresh Produce Exporters in Sub-Saharan Africa Benefit from GlobalGAP Certification?," World Development, Elsevier, vol. 39(3), pages 375-386, March.
    10. Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
    11. Bolwig, Simon & Gibbon, Peter & Jones, Sam, 2009. "The Economics of Smallholder Organic Contract Farming in Tropical Africa," World Development, Elsevier, vol. 37(6), pages 1094-1104, June.
    12. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    13. Sabates-Wheeler, Rachel, 2002. "Farm Strategy, Self-Selection and Productivity: Can Small Farming Groups Offer Production Benefits to Farmers in Post-Socialist Romania?," World Development, Elsevier, vol. 30(10), pages 1737-1753, October.
    14. Jia, Xiangping & Huang, Jikun, 2011. "Contractual arrangements between farmer cooperatives and buyers in China," Food Policy, Elsevier, vol. 36(5), pages 656-666.
    15. Tommaso Nannicini, 2006. "A Simulation-Based Sensitivity Analysis for Matching Estimators," North American Stata Users' Group Meetings 2006 6, Stata Users Group.
    16. Key, Nigel & Runsten, David, 1999. "Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production," World Development, Elsevier, vol. 27(2), pages 381-401, February.
    17. Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
    18. 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.
    19. Murray Fulton & Konstantinos Giannakas, 2001. "Organizational Commitment in a Mixed Oligopoly: Agricultural Cooperatives and Investor-Owned Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1258-1265.
    20. 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.
    21. 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.
    22. Sexton, Richard J. & Iskow, Julie, 1993. "What Do We Know About the Economic Efficiency of Cooperatives: An Evaluative Survey," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 8.
    23. Warning, Matthew & Key, Nigel, 2002. "The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal," World Development, Elsevier, vol. 30(2), pages 255-263, February.
    24. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    25. Marijke D'haese & Wim Verbeke & Guido Van Huylenbroeck & Johann Kirsten & Luc D'haese, 2005. "New Institutional Arrangements for Rural Development: The Case of Local Woolgrowers' Associations in the Transkei Area, South Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 41(8), pages 1444-1466.
    26. Johann Kirsten & Kurt Sartorius, 2002. "Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming?," Development Southern Africa, Taylor & Francis Journals, vol. 19(4), pages 503-529.
    27. Peter B. R. Hazell, 2005. "Is there a future for small farms?," Agricultural Economics, International Association of Agricultural Economists, vol. 32(s1), pages 93-101, 01.
    28. Paul Winters & Phil Simmons & Ian Patrick, 2005. "Evaluation of a Hybrid Seed Contract between Smallholders and a Multinational Company in East Java, Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 41(1), pages 62-89.
    29. Deng, Hengshan & Huang, Jikun & Xu, Zhigang & Rozelle, Scott, 2010. "Policy support and emerging farmer professional cooperatives in rural China," China Economic Review, Elsevier, vol. 21(4), pages 495-507, December.
    30. Christin Schipmann & Matin Qaim, 2010. "Spillovers from modern supply chains to traditional markets: product innovation and adoption by smallholders," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3-4), pages 361-371, 05.
    31. Bart Minten & Lalaina Randrianarison & Johan Swinnen, 2007. "Spillovers from high-value agriculture for exports on land use in developing countries: evidence from Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 265-275, 09.
    32. Hans Binswanger, 1980. "Attitudes toward risk: Experimental measurement in rural india," Artefactual Field Experiments 00009, The Field Experiments Website.
    33. Singh, Sukhpal, 2002. "Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab," World Development, Elsevier, vol. 30(9), pages 1621-1638, September.
    34. Phil Simmons & Paul Winters & Ian Patrick, 2005. "An analysis of contract farming in East Java, Bali, and Lombok, Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 513-525, November.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:37:y:2012:i:6:p:700-709. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.