Member Investment Willingness in Agricultural Cooperatives in Shaanxi (China)
This study analyzes characteristics determining
member’s willingness to invest in cooperatives using ordered logit
model. The data were collected in a field survey among 122
cooperative members in north-central China. The descriptive analysis
of survey evidence suggests that cooperatives in China generally
having poor ability to deliver the processing services related to
product package, grading, and storage, performing worse in
profitability, inability of providing returns to capital and obtaining
agricultural loan. The regression results demonstrate that members’
farm size, their satisfaction with cooperative price preferential
services, attitudes toward cooperative operational scale and
development potential have statistically significant impact on
willingness to invest.
<p>[1] P. Vitaliano, “Cooperative Principles and concepts: an overview in
American cooperation,” Washington, D.C. American Institute of
Cooperation. 1985. pp. 139-149.
[2] J. R. Dunn, “Basic cooperative principles and their relationship to
selected practices,” Journal of Agricultural Cooperation, vol. 3, no. 83,
pp. 83-93, 1986.
[3] C. L. Machethe, “Factors contributing to poor performance of
agricultural co-operatives in less development areas,” Agrekon:
Agricultural Economics Research, Policy and Practice in Southern
Africa, 29, pp. 305-309, 1990.
[4] L. J. Wang and X. X. Huo, “The comparison of transaction costs
between members and non-members in agricultural cooperatives,” China
Rural Survey. Submitted for publication, 2013.
[5] M. L. Cook, F.R. Chaddad, and C. Iliopoulos, “Advances in cooperative
theory since 1990: a review of agricultural economics literature,”
Restructuring Agricultural Cooperatives, pp. 65-90, 2004.
[6] K. Ezatollah and R.M. Kurosh, “Modeling Determinants of Agricultural
Production Cooperatives’ Performance in Iran,” Agricultural Economics,
vol. 33, pp. 305-314, 2005.
[7] A.G. Goreham, D.W. Cobia, F. Olson, and T. F. Kibbe, “What new
generation cooperative officials should know about members and their
concerns,” Extension Report, no. 41, March 1998.
[8] C.R. Knoeber and D.L. Baumer, “Understanding retained patronage
refunds in agricultural cooperatives,” American journal of Agricultural
Economics, no. 58, pp. 30-37, February 1983.
[9] A. Harris, B. Stefanson, M. Fulton, “New generation cooperatives and
cooperative theory,” Journal of Cooperatives, pp. 15-28, 1996.
[10] K. L. Jensen, B. C. English, R. J. Menard, and Y. Zhang, “An evaluation
of Tennessee soybean growers’ views on a new generation cooperative to
produce biodiesel,” Journal of Agribusiness, vol. 22, no. 2, pp. 107-117,
Fall 2004.
[11] A. Karbasi and A. Sarvari, “An investigation of effective elements on
investment behavior of cooperative members (Tybad livestock
production cooperatives),” Annals of Biological Research, vol.3, no. 8,
pp.4070-4076, 2012.
[12] D.S. Tilley, “Investment decisions in new generation cooperatives: a
case study of value added products (VAP) cooperative in Alva,
Oklahoma,” Selected Paper prepared for presentation at the Southern
Agricultural Economics Association. Annual Meeting, Mobile, Alabama,
February 1- 5, 2003.
[13] B. M. Wilson, G. A. Goreham, T. Kibbe, and D. W. Cobia, “Agricultural
loan officer’s roles in cooperative investment in North Dakota,”
Agricultural Economics, Report No. 366, 1996
[14] X.Y. Zhang, H.G. Qiu, and Z. Huang, “Apple and tomato chains in China
and the EU,” LEI report 2010-019, Wageningen UR, TheHagu, 2010.
[15] J.E. Lagos, M. Liu, and W. Bugang, “Fresh deciduous fruit annual:
Peoples Republic of China,” GAIN Report No. CH9090. USDA.
Foreign Agricultural Service, 2009.
[16] G.F. Ortmann and R.P. King, “Agricultural cooperatives : can they
facilitate access of small-scale farmers in South Africa to input and
product markets?” Agrekon, vol. 46, pp. 220-244, 2007.
[17] Z. Lerman and C. Parliament, “Comparative performance of
cooperatives and investor-owned firms in US food industries,”
Agribusiness. Vol.6, pp. 527-540, 1990.
[18] M. Chibandaa, G. F Ortmannb, and M.C. Lynec, “Institutional and
governance factors influencing the performance of selected smallholder
agricultural cooperatives in KwaZulu-Natal,” Agricultural Economics
Research, vol. 48, no. 3, pp.293-315, 2009.
[19] E. J. Luzar and K. Cosse, “Willingness to pay or intention to pay: the
attitude-behavior relationship in contingent valuation,” Journal of Socio-
Economics, vol. 27, no.3, pp.427-444, 1998.
[20] R. Likert, “A technique for the measurement of attitudes,” Archives of
Psychology, no. 140, pp. 1–55, 1932.
[21] Karami, Ezatollah and K. Rezaei-Moghaddam,“Modeling determinants
of agricultural production cooperatives’ performance in Iran,”
Agricultural Economics, vol. 33, pp. 305-314, 2005.
[22] R. D. McKelvey and W. Zavoina, “A statistical model for the analysis of
ordinal level dependent variables,” Journal of Mathematical Sociology,
vol.4, pp.103-120, 1975.
[23] M.H. Hansen, J.L. Morrow Jr., and J.C. Batista, “The impact of trust on
cooperative membership retention, performance, and satisfaction: an
exploratory study,” International Food and Agribusiness Management
Review, vol.5, pp. 41-59, 2002.
[24] J.A. Hogeland, “Local cooperatives’ role in the emerging dairy industry”,
Paper provided by United States Department of Agriculture, Rural
Development Business and Cooperative Programs in its series Research
Reports, 1998.</p>
<p>[1] P. Vitaliano, “Cooperative Principles and concepts: an overview in
American cooperation,” Washington, D.C. American Institute of
Cooperation. 1985. pp. 139-149.
[2] J. R. Dunn, “Basic cooperative principles and their relationship to
selected practices,” Journal of Agricultural Cooperation, vol. 3, no. 83,
pp. 83-93, 1986.
[3] C. L. Machethe, “Factors contributing to poor performance of
agricultural co-operatives in less development areas,” Agrekon:
Agricultural Economics Research, Policy and Practice in Southern
Africa, 29, pp. 305-309, 1990.
[4] L. J. Wang and X. X. Huo, “The comparison of transaction costs
between members and non-members in agricultural cooperatives,” China
Rural Survey. Submitted for publication, 2013.
[5] M. L. Cook, F.R. Chaddad, and C. Iliopoulos, “Advances in cooperative
theory since 1990: a review of agricultural economics literature,”
Restructuring Agricultural Cooperatives, pp. 65-90, 2004.
[6] K. Ezatollah and R.M. Kurosh, “Modeling Determinants of Agricultural
Production Cooperatives’ Performance in Iran,” Agricultural Economics,
vol. 33, pp. 305-314, 2005.
[7] A.G. Goreham, D.W. Cobia, F. Olson, and T. F. Kibbe, “What new
generation cooperative officials should know about members and their
concerns,” Extension Report, no. 41, March 1998.
[8] C.R. Knoeber and D.L. Baumer, “Understanding retained patronage
refunds in agricultural cooperatives,” American journal of Agricultural
Economics, no. 58, pp. 30-37, February 1983.
[9] A. Harris, B. Stefanson, M. Fulton, “New generation cooperatives and
cooperative theory,” Journal of Cooperatives, pp. 15-28, 1996.
[10] K. L. Jensen, B. C. English, R. J. Menard, and Y. Zhang, “An evaluation
of Tennessee soybean growers’ views on a new generation cooperative to
produce biodiesel,” Journal of Agribusiness, vol. 22, no. 2, pp. 107-117,
Fall 2004.
[11] A. Karbasi and A. Sarvari, “An investigation of effective elements on
investment behavior of cooperative members (Tybad livestock
production cooperatives),” Annals of Biological Research, vol.3, no. 8,
pp.4070-4076, 2012.
[12] D.S. Tilley, “Investment decisions in new generation cooperatives: a
case study of value added products (VAP) cooperative in Alva,
Oklahoma,” Selected Paper prepared for presentation at the Southern
Agricultural Economics Association. Annual Meeting, Mobile, Alabama,
February 1- 5, 2003.
[13] B. M. Wilson, G. A. Goreham, T. Kibbe, and D. W. Cobia, “Agricultural
loan officer’s roles in cooperative investment in North Dakota,”
Agricultural Economics, Report No. 366, 1996
[14] X.Y. Zhang, H.G. Qiu, and Z. Huang, “Apple and tomato chains in China
and the EU,” LEI report 2010-019, Wageningen UR, TheHagu, 2010.
[15] J.E. Lagos, M. Liu, and W. Bugang, “Fresh deciduous fruit annual:
Peoples Republic of China,” GAIN Report No. CH9090. USDA.
Foreign Agricultural Service, 2009.
[16] G.F. Ortmann and R.P. King, “Agricultural cooperatives : can they
facilitate access of small-scale farmers in South Africa to input and
product markets?” Agrekon, vol. 46, pp. 220-244, 2007.
[17] Z. Lerman and C. Parliament, “Comparative performance of
cooperatives and investor-owned firms in US food industries,”
Agribusiness. Vol.6, pp. 527-540, 1990.
[18] M. Chibandaa, G. F Ortmannb, and M.C. Lynec, “Institutional and
governance factors influencing the performance of selected smallholder
agricultural cooperatives in KwaZulu-Natal,” Agricultural Economics
Research, vol. 48, no. 3, pp.293-315, 2009.
[19] E. J. Luzar and K. Cosse, “Willingness to pay or intention to pay: the
attitude-behavior relationship in contingent valuation,” Journal of Socio-
Economics, vol. 27, no.3, pp.427-444, 1998.
[20] R. Likert, “A technique for the measurement of attitudes,” Archives of
Psychology, no. 140, pp. 1–55, 1932.
[21] Karami, Ezatollah and K. Rezaei-Moghaddam,“Modeling determinants
of agricultural production cooperatives’ performance in Iran,”
Agricultural Economics, vol. 33, pp. 305-314, 2005.
[22] R. D. McKelvey and W. Zavoina, “A statistical model for the analysis of
ordinal level dependent variables,” Journal of Mathematical Sociology,
vol.4, pp.103-120, 1975.
[23] M.H. Hansen, J.L. Morrow Jr., and J.C. Batista, “The impact of trust on
cooperative membership retention, performance, and satisfaction: an
exploratory study,” International Food and Agribusiness Management
Review, vol.5, pp. 41-59, 2002.
[24] J.A. Hogeland, “Local cooperatives’ role in the emerging dairy industry”,
Paper provided by United States Department of Agriculture, Rural
Development Business and Cooperative Programs in its series Research
Reports, 1998.</p>
@article{"International Journal of Business, Human and Social Sciences:59701", author = "Lijia Wang and Xuexi Huo", title = "Member Investment Willingness in Agricultural Cooperatives in Shaanxi (China)", abstract = "This study analyzes characteristics determining
member’s willingness to invest in cooperatives using ordered logit
model. The data were collected in a field survey among 122
cooperative members in north-central China. The descriptive analysis
of survey evidence suggests that cooperatives in China generally
having poor ability to deliver the processing services related to
product package, grading, and storage, performing worse in
profitability, inability of providing returns to capital and obtaining
agricultural loan. The regression results demonstrate that members’
farm size, their satisfaction with cooperative price preferential
services, attitudes toward cooperative operational scale and
development potential have statistically significant impact on
willingness to invest.
", keywords = "Cooperatives, investment willingness, member,
ordered logit.", volume = "7", number = "7", pages = "2136-7", }
