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IPM adoption, cooperative membership and farm economic performance

Author

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  • Wanglin Ma
  • Awudu Abdulai

Abstract

Purpose - The purpose of this paper is to examine the impact of agricultural cooperative membership on farmers’ decisions to adopt integrated pest management (IPM) technology and to estimate the impact of IPM adoption on farm economic performance. Design/methodology/approach - An endogenous switching probit model that addresses the sample selection bias issue arising from both observed and unobserved factors is used to estimate the survey data from a sample of 481 apple households in China. A treatment effects model is employed to estimate the impact of IPM adoption on apple yields, net returns and agricultural income. In order to address the potential endogeneity associated with off-farm work variable in estimating both cooperative membership choice specification and IPM adoption specifications, a control function approach is used. Findings - The empirical results show that cooperative membership exerts a positive and significant impact on the adoption of IPM technology. In particular, farmers’ IPM adoption decision is significantly associated with household and farm-level characteristics (e.g. education, farm size and price knowledge). IPM adoption has a positive and statistically significant impact on apple yields, net returns and agricultural income. Practical implications - The findings indicate that agricultural cooperatives can be a transmission route in the efforts to proliferate the adoption and diffusion of IPM technology, and increased IPM adoption tends to improve the economic performance of farm households. Originality/value - Despite the widespread evidence of health and environmental benefits associated with IPM technology, the adoption rate of this technology remains significantly low. This paper provides a first attempt by investigating to what extent and how agricultural cooperative membership affects IPM adoption and how IPM adoption influences farm economic performance.

Suggested Citation

  • Wanglin Ma & Awudu Abdulai, 2018. "IPM adoption, cooperative membership and farm economic performance," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 11(2), pages 218-236, September.
    • Handle: RePEc:eme:caerpp:caer-12-2017-0251
    DOI: 10.1108/CAER-12-2017-0251
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    Cited by:

    1. Lateef Olalekan Bello & Lloyd James Segun Baiyegunhi & Djana Mignouna & Razack Adeoti & Paul Matin Dontsop-Nguezet & Tahirou Abdoulaye & Victor Manyong & Zoumana Bamba & Bola Amoke Awotide, 2021. "Impact of Youth-in-Agribusiness Program on Employment Creation in Nigeria," Sustainability, MDPI, vol. 13(14), pages 1-20, July.
    2. Chenle Xue & Dan Qiao & Noshaba Aziz, 2022. "Influence of Natural Disaster Shock and Collective Action on Farmland Transferees’ No-Tillage Technology Adoption in China," Land, MDPI, vol. 11(9), pages 1-23, September.
    3. Lin, Yang & Hu, Ruifa & Zhang, Chao & Chen, Kevin, 2022. "The role of public agricultural extension services in driving fertilizer use in rice production in China," Ecological Economics, Elsevier, vol. 200(C).
    4. Yuying Liu & Ziqi Liu & Jingzheng Liu & Ling Qiu & Yulin Wang & Xinhong Fu, 2022. "Research on the Impact of Members’ Social Capital within Agricultural Cooperatives on Their Adoption of IPM in China," IJERPH, MDPI, vol. 19(18), pages 1-12, September.
    5. Si, Ruishi & Lu, Qian & Aziz, Noshaba, 2021. "Does the stability of farmland rental contract & conservation tillage adoption improve family welfare? Empirical insights from Zhangye, China," Land Use Policy, Elsevier, vol. 107(C).
    6. Bello, Lateef Olalekan & Baiyegunhi, Lloyd & Mignouna, Djana & Adeoti, Razack & Donstop-Nguezet, Paul Matin & Abdoulaye, Tahirou & Manyong, Victor & Bamba, Zoumana & Awotide, Bola Amoke, 2021. "Impact of Youth-in-Agribusiness Program on Employment Creation in Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315135, International Association of Agricultural Economists.
    7. Mingze Wu & Yueji Zhu, 2023. "Does Farmers’ Lottery Participation Affect Technical Efficiency of Banana Production in Rural China?," Agriculture, MDPI, vol. 13(4), pages 1-17, March.
    8. Zhe Chen & Apurbo Sarkar & Ahmed Khairul Hasan & Xiaojing Li & Xianli Xia, 2021. "Evaluation of Farmers’ Ecological Cognition in Responses to Specialty Orchard Fruit Planting Behavior: Evidence in Shaanxi and Ningxia, China," Agriculture, MDPI, vol. 11(11), pages 1-18, October.
    9. Ahmet Candemir & Sabine Duvaleix & Laure Latruffe, 2021. "Agricultural Cooperatives And Farm Sustainability – A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1118-1144, September.
    10. Wanglin Ma & Xiaobing Wang, 2020. "Internet Use, Sustainable Agricultural Practices and Rural Incomes: Evidence from China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1087-1112, October.
    11. Kifle T. Sebhatu & Fatemeh Taheri & Tekeste Berhanu & Miet Maertens & Steven Van Passel & Marijke D'Haese, 2021. "Beyond focus: Exploring variability of service provision of agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 207-231, June.
    12. Sinyolo, Sikhulumile, 2020. "Technology adoption and household food security among rural households in South Africa: The role of improved maize varieties," Technology in Society, Elsevier, vol. 60(C).
    13. Haolong Liu, 2022. "The Tripartite Evolutionary Game of Green Agro-Product Supply in an Agricultural Industrialization Consortium," Sustainability, MDPI, vol. 14(18), pages 1-19, September.
    14. Wanglin Ma & Hongyun Zheng & Yueji Zhu & Jianling Qi, 2022. "Effects of cooperative membership on financial performance of banana farmers in China: A heterogeneous analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 5-27, March.
    15. Zhang, Shemei & Sun, Zhanli & Ma, Wanglin & Valentinov, Vladislav, 2020. "The effect of cooperative membership on agricultural technology adoption in Sichuan, China," China Economic Review, Elsevier, vol. 62(C).
    16. Martinson Ankrah Twumasi & Yuansheng Jiang & Bismark Addai & Zhao Ding & Abbas Ali Chandio & Prince Fosu & Dennis Asante & Anthony Siaw & Frank Osei Danquah & Bright Asiamah Korankye & Gideon Ntim-Amo, 2021. "The Impact of Cooperative Membership on Fish Farm Households’ Income: The Case of Ghana," Sustainability, MDPI, vol. 13(3), pages 1-16, January.
    17. Wanglin Ma & Zhongkun Zhu, 2020. "A Note: Reducing Cropland Abandonment in China – Do Agricultural Cooperatives Play a Role?," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 929-935, September.
    18. Hongyu Wang & Apurbo Sarkar & Lu Qian, 2021. "Evaluations of the Roles of Organizational Support, Organizational Norms and Organizational Learning for Adopting Environmentally Friendly Technologies: A Case of Kiwifruit Farmers’ Cooperatives of Me," Land, MDPI, vol. 10(3), pages 1-23, March.
    19. Chaozhu Li & Xiaoliang Li & Wei Jia, 2022. "Non-Farm Employment Experience, Risk Preferences, and Low-Carbon Agricultural Technology Adoption: Evidence from 1843 Grain Farmers in 14 Provinces in China," Agriculture, MDPI, vol. 13(1), pages 1-16, December.

    More about this item

    Keywords

    China; Agricultural cooperatives; Endogenous switching probit; Farm performance; IPM adoption; Treatment effects model; C52; J54; Q56;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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