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The Propensity To Cooperate Among Peasant Farmers In Algeria: An Analysis From Bivariate Approach

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  • Benmehaia, Mohamed Amine
  • Brabez, Fatima

Abstract

This paper analyzes farmers’ decision to transact with the cooperatives, i.e., the propensity to cooperate. We aim to empirically analyze the driving factors affecting both cooperative membership and purchasing decisions of farmers in Algeria. The survey data was conducted within the National Program of Research including 625 sampled farmers. The study distin-guishes four types of participation according to farmers’ decision of membership and pur-chasing inputs. The empirical results from the Bivariate Probit regression model suggest that specialization, human capital, access to services, and geographic location are significant fac-tors that influence farmers’ propensity to cooperate and participation behavior as a devoted membership. This empirical finding has important implications for Algerian policy-makers in their efforts to promote efficient agricultural markets through producer cooperatives and other agricultural policies.

Suggested Citation

  • Benmehaia, Mohamed Amine & Brabez, Fatima, 2016. "The Propensity To Cooperate Among Peasant Farmers In Algeria: An Analysis From Bivariate Approach," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(4), pages 1-14, October.
    • Handle: RePEc:ags:ijfaec:251820
    DOI: 10.22004/ag.econ.251820
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