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Effects of Agricultural Cooperative Society on Farmers’ Technical Efficiency: Evidence from Stochastic Frontier Analysis

Author

Listed:
  • Ruopin Qu

    (Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Science, Beijing 100081, China)

  • Yongchang Wu

    (Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Science, Beijing 100081, China)

  • Jing Chen

    (Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Science, Beijing 100081, China)

  • Glyn D. Jones

    (School of Natural and Environmental Sciences, Newcastle University, Newcastle upon Tyne NE1 7RU, UK
    FERA Sciences Ltd., National Agri-Food Innovation Campus, Sand Hutton YO41 1LZ, UK)

  • Wenjing Li

    (School of Natural and Environmental Sciences, Newcastle University, Newcastle upon Tyne NE1 7RU, UK
    FERA Sciences Ltd., National Agri-Food Innovation Campus, Sand Hutton YO41 1LZ, UK)

  • Shan Jin

    (School of Natural and Environmental Sciences, Newcastle University, Newcastle upon Tyne NE1 7RU, UK)

  • Qian Chang

    (National Engineering Research Center for Information Technology in Agriculture, Beijing 100097, China)

  • Yiying Cao

    (RSK ADAS Ltd., Spring Lodge, 172 Chester Road, Helsby WA6 0AR, UK)

  • Guijun Yang

    (National Engineering Research Center for Information Technology in Agriculture, Beijing 100097, China)

  • Zhenhong Li

    (School of Engineering, Newcastle University, Newcastle upon Tyne NE1 7RU, UK)

  • Lynn J. Frewer

    (School of Natural and Environmental Sciences, Newcastle University, Newcastle upon Tyne NE1 7RU, UK)

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.

Suggested Citation

  • Ruopin Qu & Yongchang Wu & Jing Chen & Glyn D. Jones & Wenjing Li & Shan Jin & Qian Chang & Yiying Cao & Guijun Yang & Zhenhong Li & Lynn J. Frewer, 2020. "Effects of Agricultural Cooperative Society on Farmers’ Technical Efficiency: Evidence from Stochastic Frontier Analysis," Sustainability, MDPI, vol. 12(19), pages 1-13, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:19:p:8194-:d:423810
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    References listed on IDEAS

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