IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v11y1995i3p245-261.html
   My bibliography  Save this article

Cooperative growth: Is it constrained?

Author

Listed:
  • Murray E. Fulton

    (Department of Agricultural Economics and Centre for the Study of Co-operatives, University of Saskatchewan)

  • Joan R. Fulton

    (Department of Agricultural and Resource Economics, Colorado State University)

  • J. Stephen Clark

    (Nova Scotia Agricultural College)

  • Claudia Parliament

    (Department of Agricultural and Applied Economics, University of Minnesota)

Abstract

This article explores the issue of cooperative growth from both an empirical and theoretical perspective. Using total assets as the measure of cooperative size, we present long-term, time-series data from seven of the largest regional agricultural cooperatives in Canada and the United States. We then examine the issue of growth from a theoretical perspective, integrating the literature on investor-oriented firm growth with the literature on cooperative growth. The empirical analysis that follows from the theoretical analysis suggests it is not possible to reject Gibrat's Law for six of the seven cooperatives; that is, that a cooperative's long-term growth rate is independent of its size. The empirical results also suggest the growth rate for the cooperatives in the sample is low, perhaps even zero. © 1995 by John Wiley & Sons, Inc.

Suggested Citation

  • Murray E. Fulton & Joan R. Fulton & J. Stephen Clark & Claudia Parliament, 1995. "Cooperative growth: Is it constrained?," Agribusiness, John Wiley & Sons, Ltd., vol. 11(3), pages 245-261.
    • Handle: RePEc:wly:agribz:v:11:y:1995:i:3:p:245-261
    DOI: 10.1002/1520-6297(199505/06)11:3<245::AID-AGR2720110306>3.0.CO;2-J
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Dahl, Reynold P., 1991. "Structural Change and Performance of Grain Marketing Cooperatives," Journal of Agricultural Cooperation, National Council of Farmer Cooperatives, vol. 6, pages 1-16.
    2. N/A, 1989. "Annual Report," Evaluation Review, , vol. 13(3), pages 320-320, June.
    3. Joan R. Fulton & Robert P. King, 1993. "Relationships among information expenditure, economic performance, and size in local grain marketing cooperatives in the upper midwest," Agribusiness, John Wiley & Sons, Ltd., vol. 9(2), pages 143-157.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chaddad, Fabio Ribas & Cook, Michael L., 2001. "Testing For The Presence Of Financial Constraints In Agricultural Cooperatives," 2001 Annual meeting, August 5-8, Chicago, IL 20746, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    3. Chaddad, Fabio Ribas, 2006. "Investment Constraints in Agricultural Cooperatives: Theory, Evidence and Solutions," 44th Congress, July 23-27, 2006, Fortaleza, Ceará, Brazil 143259, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    4. Heath Henderson & Leonardo Corral & Eric Simning & Paul Winters, 2015. "Land Accumulation Dynamics in Developing Country Agriculture," Journal of Development Studies, Taylor & Francis Journals, vol. 51(6), pages 743-761, June.
    5. Fernández Olmos, Marta, 2010. "The performance implications of "grow or buy" decisions in the wine industry," Food Policy, Elsevier, vol. 35(3), pages 256-264, June.
    6. Heath Henderson & Leonardo Corral & Eric Simning & Paul Winters, 2015. "Land Accumulation Dynamics in Developing Country Agriculture," Journal of Development Studies, Taylor & Francis Journals, vol. 51(6), pages 743-761, June.
    7. Giannakas, Konstantinos & Fulton, Murray E., 2003. "Agricultural Cooperatives And Cost-Reducing R&D In The Agri-Food System," 2003 Annual meeting, July 27-30, Montreal, Canada 22193, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Chaddad, Fabio Ribas & Heckelei, Thomas, 2003. "Access To Capital And Firm-Level Investment Behavior In Food Industries: A Comparison Of Cooperatives And Publicly Traded Firms," 2003 Annual meeting, July 27-30, Montreal, Canada 22205, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Meng-Fen Yen & Mario J. Miranda & Ani Katchova, 2020. "The effects of capital constraints on the growth of agricultural cooperatives," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 66(1), pages 27-33.
    10. Chaddad, Fabio Ribas & Cook, Michael L., 2002. "Testing For The Presence Of Financial Constraints In U.S," Working Papers 26045, University of Missouri Columbia, Department of Agricultural Economics.
    11. Canarella, Giorgio & Miller, Stephen M., 2018. "The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis," Economic Modelling, Elsevier, vol. 70(C), pages 259-271.
    12. Marie Bouchard & Damien Rousselière, 2018. "Does Gibrat's law hold among urban social economy enterprises? A research note on Montreal social economy," Economics Bulletin, AccessEcon, vol. 38(3), pages 1523-1540.
    13. Nana Afranaa Kwapong, 2013. "Restructured agricultural cooperative marketing system in Uganda: study of the Tripartite Cooperative Model," Euricse Working Papers 1357, Euricse (European Research Institute on Cooperative and Social Enterprises).
    14. Murmann Johann Peter & Korn Jenny & Worch Hagen, 2014. "How Fast Can Firms Grow?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(2-3), pages 210-233, April.
    15. Fabio R. Chaddad & Michael L. Cook & Thomas Heckelei, 2005. "Testing for the Presence of Financial Constraints in US Agricultural Cooperatives: An Investment Behaviour Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 385-397, December.
    16. Chaddad, Fabio Ribas & Cook, Michael L., 2002. "An Ownership Rights Typology Of Cooperative Models," Working Papers 26032, University of Missouri Columbia, Department of Agricultural Economics.
    17. Huashu Wang & Zhenyi Li & H. Holly Wang, 2022. "Does Backward Integration Improve Food Safety of the Tea Industry in China in the Post-COVID-19 Era?," Sustainability, MDPI, vol. 14(4), pages 1-15, February.
    18. Jan Falkowski & Pavel Ciaian, 2016. "Factors Supporting the Development of Producer Organizations and their Impacts in the Light of Ongoing Changes in Food Supply Chains: A Literature Review," JRC Research Reports JRC101617, Joint Research Centre.
    19. Francisco Diaz Hermelo & Roberto Vassolo, 2007. "The Determinants Of Firm’S Growth: An Empirical Examination," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 10(1), pages 3-20.
    20. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 18942, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    21. Holstenkamp, Lars, 2019. "What do we know about cooperative sustainable electrification in the global South? A synthesis of the literature and refined social-ecological systems framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 307-320.
    22. repec:vuw:vuwscr:18942 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Longmire, Jim, 1995. "Changing Structure and Location of Australian Agriculture," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 148803, Australian Agricultural and Resource Economics Society.
    2. repec:ags:unassr:235073 is not listed on IDEAS
    3. Sterns, James A. & Bernsten, Richard H., 1994. "Assessing the Impact of Cowpea and Sorghum Research and Extension in Northern Cameroon," Food Security International Development Working Papers 54727, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Wesselink B., 1996. "Monitoring guidelines for semi-formal financial institutions active in small enterprise finance," ILO Working Papers 993138863402676, International Labour Organization.
    5. Thornton, Daniel L., 2004. "The Fed and short-term rates: Is it open market operations, open mouth operations or interest rate smoothing?," Journal of Banking & Finance, Elsevier, vol. 28(3), pages 475-498, March.
    6. Yashiv, Eran, 2003. "Self-Selection of Migrant Workers: Migration Premium and (no) Returns to Skills," CEPR Discussion Papers 4156, C.E.P.R. Discussion Papers.
    7. Hemant Deo & Helen Irvine, 2006. "Power and knowledge in the Agricultural Lending Division of the Fiji Development Bank," Asian Review of Accounting, Emerald Group Publishing, vol. 14(1), pages 66-82, July.
    8. Wu, Chuntao & Hayashi, Yoshitsugu & Funck, Carolin, 2012. "The role of charter flights in Sino-Japanese tourism," Journal of Air Transport Management, Elsevier, vol. 22(C), pages 21-27.
    9. Liu, Xuelin, 1996. "Adjusted coal accounts in China," Resources Policy, Elsevier, vol. 22(3), pages 173-181, September.
    10. Abreu, Denise A. & Riberas, Zulma T., 2008. "General Overview of the NASS Objective Yield and Objective Measurement Programs," NASS Research Reports 235073, United States Department of Agriculture, National Agricultural Statistics Service.
    11. Dahl, Reynold P., 1991. "Structural Changes In The United States Grain Marketing System," Staff Papers 13923, University of Minnesota, Department of Applied Economics.
    12. Panayiotis P. Athanasoglou, 2011. "The role of product variety and quality and of domestic supply in foreign trade," Working Papers 128, Bank of Greece.
    13. W. D. Dobson, 1992. "Competitive strategies of US fluid milk processors: A case study," Agribusiness, John Wiley & Sons, Ltd., vol. 8(5), pages 425-444.
    14. J.L. Wallis & M.L. Truu, 1990. "Regional Development and Government Intervention in the Provision of Transport and Electricity Services," South African Journal of Economics, Economic Society of South Africa, vol. 58(2), pages 149-155, June.
    15. Joan R. Fulton & Robert P. King, 1993. "Relationships among information expenditure, economic performance, and size in local grain marketing cooperatives in the upper midwest," Agribusiness, John Wiley & Sons, Ltd., vol. 9(2), pages 143-157.
    16. Taylor, Brian Deane, 1992. "When Finance Leads Planning: The Influence of Public Finance on Transportation Planning and Policy in California," University of California Transportation Center, Working Papers qt6cc6478q, University of California Transportation Center.
    17. Domah, P. & Pollitt, M.G., 2000. "The Restructuring and Privatisation of Electricity Distribution and Supply Businesses in England and Wales: A Social Cost Benefit Analysis," Cambridge Working Papers in Economics 0007, Faculty of Economics, University of Cambridge.
    18. Shigetomi, Shinichi, 2013. "Development and institutionalization of communitarian thought in Thailand," IDE Discussion Papers 423, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    19. Bradford, D.F., 1990. "What Is National Saving?: Alternative Measures In Historical And International Context," Papers 54, Princeton, Woodrow Wilson School - Discussion Paper.
    20. William D. Dobson, 1990. "The competitive strategy of the New Zealand dairy board," Agribusiness, John Wiley & Sons, Ltd., vol. 6(6), pages 541-558.
    21. Yashiv, Eran, 2004. "The Self-Selection of Migrant Workers Revisited," IZA Discussion Papers 1094, Institute of Labor Economics (IZA).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:11:y:1995:i:3:p:245-261. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.