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Do farmers' professional cooperatives improve agricultural technical efficiency? Evidence using a national‐level dataset of China

Do farmers' professional cooperatives improve agricultural technical efficiency? Evidence using a... This study examines the impact of farmers' professional cooperatives (FPCs) on agricultural technical efficiency (TE), using panel data from 30 provinces of China from 2015 to 2020 and the stochastic frontier function (SFF) method. The number of members of each cooperative, the proportion of demonstration cooperatives, and the proportion of standard cooperatives are introduced as proxy variables for the development level of FPCs. The results show that although the development of FPCs is imperfect, its development has a significant positive impact on improving China's agricultural TE. Through the continuous increase in the number of cooperative members and the vigorous promotion of standardized production, agricultural TE has been significantly improved. However, the construction of model cooperatives has not played a positive role but inhibited the growth of agricultural TE. It is suggested to expand the cooperative membership and promote standardized production. The government and policymakers should focus on improving the standardization level of cooperatives and the development quality of FPCs from the aspects of innovating cooperation models, standardizing internal governance, and giving full play to the synergistic effect of agricultural science and technology. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Annals of Public and Cooperative Economics Wiley

Do farmers' professional cooperatives improve agricultural technical efficiency? Evidence using a national‐level dataset of China

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References (47)

Publisher
Wiley
Copyright
Journal compilation © 2023 EMF.
ISSN
1370-4788
eISSN
1467-8292
DOI
10.1111/apce.12437
Publisher site
See Article on Publisher Site

Abstract

This study examines the impact of farmers' professional cooperatives (FPCs) on agricultural technical efficiency (TE), using panel data from 30 provinces of China from 2015 to 2020 and the stochastic frontier function (SFF) method. The number of members of each cooperative, the proportion of demonstration cooperatives, and the proportion of standard cooperatives are introduced as proxy variables for the development level of FPCs. The results show that although the development of FPCs is imperfect, its development has a significant positive impact on improving China's agricultural TE. Through the continuous increase in the number of cooperative members and the vigorous promotion of standardized production, agricultural TE has been significantly improved. However, the construction of model cooperatives has not played a positive role but inhibited the growth of agricultural TE. It is suggested to expand the cooperative membership and promote standardized production. The government and policymakers should focus on improving the standardization level of cooperatives and the development quality of FPCs from the aspects of innovating cooperation models, standardizing internal governance, and giving full play to the synergistic effect of agricultural science and technology.

Journal

Annals of Public and Cooperative EconomicsWiley

Published: Jun 21, 2023

Keywords: agricultural technical efficiency; China; farmers' professional cooperatives; stochastic frontier analysis

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