The Impact of Quasi-Integrated Agricultural Organizations on Farmers’ Production Efficiency: Evidence from China

Sun Dapeng, Wang Haoran, Ma Jun () and Zhang Hongye
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Sun Dapeng: School of Marxism, Dalian Maritime University, Dalian, 116026, China
Wang Haoran: Library Literature Resources Department, Tongliao Vocational College, Tongliao, 028000, China
Ma Jun: School of Marxism, Dongbei University of Finance and Economics, Dalian, 116025, China
Zhang Hongye: School of Marxism, Dongbei University of Finance and Economics, Dalian, 116025, China

Economics - The Open-Access, Open-Assessment Journal, 2025, vol. 19, issue 1, 22

Abstract: Although vertically integrated agricultural industry organizations play a crucial role in bridging the gap between smallholders and large markets, the uneven distribution of benefits within such organizations remains a challenge. Drawing on decades of agricultural reform in China, a quasi-integrated organizational model has emerged that preserves farmers’ autonomy in production and management while achieving factor integration through contractual services, thereby enhancing production efficiency. This study uses household-level data (n = 1,876) collected between 2015 and 2022 from five major agricultural provinces – Jilin, Liaoning, Shandong, Henan, and Sichuan – to examine the heterogeneous effects of quasi-integrated organizations on farm efficiency through a Multinomial Choice Model. The findings indicate that participation in quasi-integrated organizations significantly improves production efficiency, particularly among cash-crop growers, farmers in eastern and central regions, and those without prior technical training. These results suggest that governments should adopt targeted and differentiated agricultural policies to promote scientific management and optimize labor allocation.

Keywords: quasi-integrated organization; agricultural industry; sustainable production capacity; farmers’ production efficiency (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bpj:econoa:v:19:y:2025:i:1:p:22:n:1003

DOI: 10.1515/econ-2025-0173

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