Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation

Συγγραφείς:
Ito, Junichi
Bao, Zongshun
Su, Qun
Τύπος: Journal Article
'Ετος δημοσίευσης: 2012
Πηγή: USDA
Συλλογή από: AGRIS
Θέμα:
farms
farmers
cooperatives
Περιγραφή:This paper examines the treatment effects of the agricultural cooperative and publicly funded extension services on individual household economy, using data collected by the author from watermelon-producing farm households in rural Nanjing. The cooperative addressed in this study restricts the participation of small-scale farmers, implying that selection into the program must be taken into consideration for an accurate assessment of the treatment effect. The econometric analysis revealed that government extension services have a modest effect on farm income. In contrast, the treatment effect of the agricultural cooperative is robust and substantially large, accounting for nearly 70% of the pre-matching difference. This suggests that the agricultural cooperative system is an important avenue for farmers to improve their economic status. The treatment effect of the agricultural cooperative is highly heterogeneous; the economic benefits arising from the cooperative are significant only for small-scale farms. We can argue that a coexistence of smallholder exclusion and the treatment effect in favor of small-scale farms poses serious challenges to pro-poor agricultural growth in China.
 

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