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, Lynn J. Frewer

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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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.

Original languageEnglish
Article number8194
Number of pages13
JournalSustainability (Switzerland)
Volume12
Issue number19
DOIs
Publication statusPublished - 5 Oct 2020
Externally publishedYes

Keywords

  • agricultural cooperatives
  • apple production
  • China
  • propensity score matching
  • stochastic production frontier
  • technical efficiency

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