Benefits of a marketing cooperative in transition agriculture: Mórakert purchasing and service co-operative

Zoltán Bakucs (), Imre Fertő and Gábor Szabó

Society and Economy, 2012, vol. 34, issue 3, 453-468

Abstract: The paper analyses the potential benefits of marketing cooperatives in Hungary, employing a transaction cost economics framework. We found that the purchased quantity, the existence of contracts, flexibility and trust are the most important factors farmers consider when selling their products via a cooperative. The most striking result is that diversification has positive influences on the share of cooperatives in farmers’ sale. Furthermore, farmers with larger bargaining power have less willingness to sell their product to the cooperative. Surprisingly, asset specificity has rather negative effects on the share of cooperatives in members’ sales.

Keywords: contract enforcement; co-operative; transition economy; Tobit model (search for similar items in EconPapers)
JEL-codes: C12 C25 D23 (search for similar items in EconPapers)
Date: 2012
Note: The research was supported by OTKA (grant number K68467) and by the Bolyai János Scholarship.
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Citations: View citations in EconPapers (5)

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