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 members’ 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.
RESEARCH ARTICLE
The role of agricultural cooperatives in serving as a marketing channel: evidence from low-income regions of Sichuan province in China
Yuying Liu Related information
aPhD candicate, College of Management, Sichuan Agricultural University, 211 Huimin Road, Wenjiang, Chengdu 611130, China P.R.
, Wanglin Ma Related informationbLecturer, Department of Global Value Chains and Trade, Faculty of Agribusiness and Commerce, Lincoln University, P.O. Box 85084, 7647 Christchurch, New Zealand.
, Alan Renwick Related informationcProfessor, Department of Global Value Chains and Trade, Faculty of Agribusiness and Commerce, Lincoln University, P.O. Box 85084, 7647 Christchurch, New Zealand.
, Xinhong Fu Related informationdProfessor, College of Management, Sichuan Agricultural University, 211 Huimin Road, Wenjiang, Chengdu 611130, China P.R.
*Corresponding author: 10248@sicau. edu. cn
*Corresponding author: 10248@sicau.
International Food and Agribusiness Management Review: 22
(2)- Pages: 265 - 282
Published Online: February 13, 2019
Abstract
Keywords: agricultural cooperatives, marketing channel, PSM, IPWRA, low-income regions
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