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Centralized versus Individual: Governance of Farmer Professional Cooperatives in China

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  • Jia, Xiangping
  • Hu, Yamei
  • Hendrikse, George W.J.
  • Huang, Jikun

Abstract

Based on a national representative survey conducted in 2009, this study shows that the decision-making within Farmer Professional Cooperatives (FPCs) in China is decentralized to individual farmers. However, there is a trend that the decision rights of farming are decomposed to marketing, production and input procuring. While the rights for production and input procuring stay with family farmers, marketing rights tend to be collectivized. Compared to FPCs having external initiating sources, FPCs initiated by farmers are more inclined to introduce centralized decision-making. The governance structure of FPCs in transition China presents hybrid forms of both hierarchy and family farming.

Suggested Citation

  • Jia, Xiangping & Hu, Yamei & Hendrikse, George W.J. & Huang, Jikun, "undated". "Centralized versus Individual: Governance of Farmer Professional Cooperatives in China," 2010 IAMO Forum, June 16-18, 2010, Halle (Saale), Germany 90803, Institute of Agricultural Development in Transition Economies (IAMO).
    • Handle: RePEc:ags:iamo10:90803
    DOI: 10.22004/ag.econ.90803
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    2. Ma, Meilin & Zhu, Heng, 2014. "Decision Making Among Heterogeneous Members: A Study on Economic Efficiency under the Centralized Structure of Chinese Farmer Professional Cooperatives," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 168366, Agricultural and Applied Economics Association.

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    JEL classification:

    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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