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Research on Trust Mechanism in Rural Cooperatives

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  • Liu, Yu-xiang

Abstract

The thesis introduces the generation and mechanism of action of trust during cooperation, which indicates that trust can activate the members’ participation in management and investment, and preclude the generation of members’ will and behavior of breach of contract so as to guarantee the stable development of farmers’ cooperatives; the decreasing degree of trust can put sand in the wheels of farmers’ cooperatives. Based on these, we conduct survey of questionnaire on 197 rural households of 10 farmers’ cooperatives in Yanliang, Xi’an, Lintong and Yanglin . By analyzing the generation of trust mechanism and survey data, some suggestions are put forward as follows: promote inner communication; remodel the trust culture of informal system; hew to contractual system; perfect the system of motivation and punishment; establish the system of equal property right and investment; implement management and supervision by job rotation so as to promote the trust degree among the members of farmers’ cooperatives and keep the benign recycle of “trust-cooperation”.

Suggested Citation

  • Liu, Yu-xiang, 2011. "Research on Trust Mechanism in Rural Cooperatives," Asian Agricultural Research, USA-China Science and Culture Media Corporation, vol. 3(01), pages 1-6, January.
  • Handle: RePEc:ags:asagre:108405
    DOI: 10.22004/ag.econ.108405
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    Agribusiness;

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