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Participation in formal and informal cooperation and its effect on productivity in Central Asia: Empirical evidence from Uzbekistan

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  • Bobjonov, I.
  • Teuber, R.

Abstract

This study discusses the importance of cooperation in Central Asian Uzbekistan. Determinants of cooperation as well as benefits from cooperation are investigated using survey data of 405 farms in the central grain producing region of Uzbekistan. The study distinguishes between formal and informal cooperation which could have vital importance in transition economies, which is not explicitly discussed in the existing literature so far. The analysis of the determinants shows that participation in cotton procurement mechanisms is the main factor which brings farmers to membership in formal cooperatives. Informal cooperation seems to be more pronounced among middle-scale and commercially-oriented farmers than among large-scale or subsistence-oriented household farms. Larger demand for informal cooperation than formal cooperation is explained by limited type of services in formal cooperatives designed to serve cotton producers. Therefore formal cooperatives need to diversify their services to cover wider demand currently fulfilled by informal cooperation. Besides, our results indicate that participation in both formal and informal cooperatives has a positive effect on wheat productivity. This positive impact of cooperation might stem from improved access to machinery, proper timing and increased input quality.

Suggested Citation

  • Bobjonov, I. & Teuber, R., 2018. "Participation in formal and informal cooperation and its effect on productivity in Central Asia: Empirical evidence from Uzbekistan," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276002, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:276002
    DOI: 10.22004/ag.econ.276002
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    References listed on IDEAS

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