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Impact of agricultural cooperatives on smallholders' technical efficiency: evidence from Ethiopia

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  • Gashaw Tadesse Abate
  • Gian Nicola Francesconi
  • Gian Nicola Francesconi

Abstract

Using household survey data from Ethiopia, this paper evaluates the impact of agricultural cooperatives on smallholders technical efficiency. We utilize propensity score matching to compare the average difference in technical efficiency between cooperative farmers and similar independent farmers. The approach assumes exogenous cooperative formation and similar farm technology across households. The results show that agricultural cooperatives are effective in providing support services that significantly contribute to members technical efficiency. These results are found to be insensitive to hidden bias and consistent with the idea that agricultural cooperatives enhance members efficiency by easing access to productive inputs and facilitating extension linkages. Based on the findings, increased participation in agricultural cooperatives should further enhance efficiency gains among smallholder farmers.

Suggested Citation

  • Gashaw Tadesse Abate & Gian Nicola Francesconi & Gian Nicola Francesconi, 2013. "Impact of agricultural cooperatives on smallholders' technical efficiency: evidence from Ethiopia," Euricse Working Papers 1350, Euricse (European Research Institute on Cooperative and Social Enterprises).
    • Handle: RePEc:trn:utwpeu:1350
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    More about this item

    Keywords

    Agricultural cooperatives; smallholder farmers; technical efficiency; Ethiopia.;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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