Effects of Agricultural Cooperative Society on Farmers’ Technical Efficiency: Evidence from Stochastic Frontier Analysis

Ruopin Qu, Yongchang Wu, Jing Chen, Glyn D. Jones, Wenjing Li, Shan Jin, Qian Chang, Yiying Cao, Guijun Yang, Zhenhong Li and Lynn J. Frewer
Additional contact information
Ruopin Qu: Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Science, Beijing 100081, China
Yongchang Wu: Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Science, Beijing 100081, China
Jing Chen: Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Science, Beijing 100081, China
Glyn D. Jones: School of Natural and Environmental Sciences, Newcastle University, Newcastle upon Tyne NE1 7RU, UK
Wenjing Li: School of Natural and Environmental Sciences, Newcastle University, Newcastle upon Tyne NE1 7RU, UK
Shan Jin: School of Natural and Environmental Sciences, Newcastle University, Newcastle upon Tyne NE1 7RU, UK
Qian Chang: National Engineering Research Center for Information Technology in Agriculture, Beijing 100097, China
Yiying Cao: RSK ADAS Ltd., Spring Lodge, 172 Chester Road, Helsby WA6 0AR, UK
Guijun Yang: National Engineering Research Center for Information Technology in Agriculture, Beijing 100097, China
Zhenhong Li: School of Engineering, Newcastle University, Newcastle upon Tyne NE1 7RU, UK
Lynn J. Frewer: School of Natural and Environmental Sciences, Newcastle University, Newcastle upon Tyne NE1 7RU, UK

Sustainability, 2020, vol. 12, issue 19, 1-13

Abstract: The impact of agricultural cooperatives on apple farmers’ technical efficiency (TE) in China was examined. The cooperatives were divided into two groups: a collective marketing group for farmers and an equivalent non-marketing group that did not provide a marketing service, although other functions remained the same. Using the propensity score matching (PSM) procedure and stochastic production frontier (SPF) modelling, cooperatives’ key functions that potentially increase farmers’ TE can be identified. The results indicate that membership of either group is positively related to yield. However, cooperatives that were not engaged in marketing achieved higher TE than non-members. This suggests that policy makers should encourage cooperatives to focus on activities that do not include direct marketing to increase TE in apple production in China.

Keywords: agricultural cooperatives; technical efficiency; propensity score matching; stochastic production frontier; apple production; China (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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