Community-level social capital and agricultural cooperatives: Evidence from Hebei, China

This paper explores the relationships between five aspects of community-level social capital and the formation and performance of agricultural cooperatives, based on an investigation of 50 rural villages in Hebei, China. Results show that trust and informal sociability relate positively to either cooperative formation or performance, whereas local network is negatively related to both formation and performance. It is therefore recommended that policy makers leverage publicity channels and financial tools to encourage and stimulate trust, enhance the effectiveness of intervillage communication, and work out a collaborative mechanism between local networks and agricultural cooperatives. [EconLit Citations: Q13, P32]

Automated summary

Trust and informal sociability positively impact the formation and performance of agricultural cooperatives, while local network has a negative effect on both. Policy makers should utilize publicity channels and financial tools to promote trust, improve inter-village communication, and establish a collaborative mechanism between local networks and agricultural cooperatives.