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IMPACT OF COOPERATIVES MEMBERSHIP ON ECONOMY IN EASTERN OROMIA: THE CASE OF HARAMAYA AGRICULTURAL FARMERS’ COOPERATIVE UNION (HAFCU)
Author(s) -
DEBELA Megersa,
DIRIBA Sisay,
BEKELE Hailemichael
Publication year - 2018
Publication title -
annals of public and cooperative economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.526
H-Index - 37
eISSN - 1467-8292
pISSN - 1370-4788
DOI - 10.1111/apce.12175
Subject(s) - productivity , matching (statistics) , poverty , agriculture , work (physics) , business , propensity score matching , agricultural productivity , instrumental variable , capital (architecture) , agribusiness , economics , economic growth , agricultural economics , geography , mechanical engineering , statistics , mathematics , archaeology , engineering , econometrics
This study attempts to analyse the impact of cooperatives on the smallholders’ income, productivity, marketed surplus and saving in East Hararghe Zone of Haramaya District. The study is based on primary cross‐sectional data collected from cooperative member and non‐cooperative member household heads. The propensity score matching (PSM) estimates complemented by a bias correction matching (BCM) and Lewbel instrumental variable (IV) regression estimation shows that cooperatives have a positive impact on smallholders’ income and productivity. The findings have strong policy implications. The rural development of the country should work toward strengthening and expanding the existing rural organizations through training and capacity building programmes. It is important particularly establishing new rural‐based organizations that enable rural households to engage in business activities. Doing that may help reduce poverty and increase smallholders’ income, productivity, and capital accumulation.