Journal
INTERNATIONAL FOOD AND AGRIBUSINESS MANAGEMENT REVIEW
Volume 22, Issue 2, Pages 265-282Publisher
WAGENINGEN ACADEMIC PUBLISHERS
DOI: 10.22434/IFAMR2018.0058
Keywords
agricultural cooperatives; marketing channel; PSM; IPWRA; low-income regions
Categories
Funding
- National Natural Science Foundation of China [71603177]
- Sichuan Rural Development Research Center [CR1720]
- Sichuan Government [18RKX0751]
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Although cooperative organizations aim to enhance agricultural production and marketing, in some countries such as China, not all members sell their products through agricultural cooperatives. This study examines the determinants of using agricultural cooperatives as a marketing channel and its effects on farm income and household income, using survey data collected from cooperative members in low-income regions of Sichuan province in China. We employ both propensity score matching model and inverse probability weighting estimator with regression adjustment to address the sample selection bias issue. The empirical results show that risk attitude, farm size, machine ownership, sales ability, and demonstration level of cooperatives are main factors that determine the member's decision to use agricultural cooperatives as a marketing channel, and the marketing channel users obtain significantly higher farm income and household income than non-users. Our findings highlight the importance and necessity of promoting agricultural cooperatives as a marketing channel among non-users.
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