Do Farmer Professional Cooperatives Improve Technical Efficiency and Income? Evidence from Small Vegetable Farms in China

Ying Dong · Yueying Mu · David G. Abler

37 citations0/0 files storedJournal of Agricultural and Applied Economics

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Cooperative Studies and Economics Agricultural economics and policies Efficiency Analysis Using DEA

Abstract

Abstract China’s small-scale agricultural producers face many challenges to increasing productivity and efficiency. In recent years, the Chinese government has provided support for farmer professional cooperatives (FPCs) to connect small farms with upstream and downstream processes in the food supply chain. This study combines propensity score matching and sample selection-corrected stochastic production frontier analysis to estimate the impacts of FPC participation by greenhouse vegetable producers on technical efficiency and income. Results indicate that FPCs help participants improve returns to scale and marginal returns to land and labor, increase technical efficiency, and obtain ¥4,460 (18%) greater income per greenhouse than nonparticipants.

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References

1992Handbook of development economics 2007Metafrontier frameworks for the study of firm-level efficiencies and technology ratios 2004A Metafrontier Production Function for Estimation of Technical Efficiencies and Technology Gaps for Firms Operating Under Different Technologies 2006Technical efficiency in farming: a meta-regression analysis 2016Does cooperative membership improve household welfare? Evidence from apple farmers in China 2012Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation 2007Do farmers benefit from participating in specialty markets and cooperatives? The case of coffee marketing in Costa Rica1 2014A new approach to estimating the metafrontier production function based on a stochastic frontier framework

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