Cooperatives as competitive yardstick in the hog industry?—Evidence from China

Qiao Liang () and Xinxin Wang

Agribusiness, 2020, vol. 36, issue 1, 127-145

Abstract: The competitive yardstick role of marketing cooperatives refers to the fact that the presence of cooperatives drives the market towards competitiveness. We conduct an empirical study based on panel data from the hog industry in China to examine the existence of competitive yardstick effect of cooperatives. Data including information regarding hog producer cooperatives, farm gate prices of hogs, and other relevant factors in China's 21 provinces in the years 2009–2012 are used. Various methods, including ordinary least squares regression, random‐effect model, and fixed‐effect model, are adopted to predict the effect of cooperatives development on farm gate prices. The results confirm the role of hog producer cooperatives as the competitive yardstick of markets, that is, a positive effect of strength of cooperatives on the farm gate prices received by hog producers with various production sizes. [EconLit classifications: Q13, L16]

Date: 2020
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https://doi.org/10.1002/agr.21630

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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:36:y:2020:i:1:p:127-145

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