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Determinants of Producers' Participation in Agricultural Cooperatives: Evidence from Northern China
Author(s) -
Zheng Shi,
Wang Zhigang,
Awokuse Titus O.
Publication year - 2012
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppr044
Subject(s) - agriculture , china , probit model , probit , business , ordered logit , productivity , logit , ordered probit , multivariate probit model , agricultural economics , empirical research , empirical evidence , welfare , economic growth , economics , geography , market economy , philosophy , archaeology , epistemology , machine learning , computer science , econometrics
Agricultural producer cooperatives are of great significance to the development of agricultural productivity and can provide improved economic welfare benefits to farmers. However, such organizations have not been well‐developed in China. While China's new Cooperatives Law of 2007 has generated interest among scholars, very few empirical analyses have focused on the role of cooperatives in China's agricultural sector. The main objective of this study is to investigate the determinants of farmers' perception and their decision to participate in cooperatives, using a unique dataset from recently collected survey data of farming households in China's Jilin Province. The empirical results from probit and logit regression models suggest that educational attainment, risk comfort level, farm expansion, operational costs, geographic location and crop types are significant factors that influence producers' perception of cooperatives, as well as their participation behavior.