Cooperative membership and agricultural performance: Evidence from Rwanda

Agricultural policies in Rwanda focus on agricultural intensification and increased market orientation of the smallholder farm sector. Cooperatives are seen as key vehicles in this but little is known about their effectiveness to achieve these goals. In this paper we analyze the impact of cooperative membership on agricultural performance for rural households in Rwanda. Cross-sectional household data, collected in 2012, are used to analyze the impact of cooperative membership on different agricultural performance indicators. We specifically look at the diversity in cooperatives and distinguish different types of cooperatives in several ways. We use several econometric techniques to deal with potential selection bias in estimating the impact of cooperative membership, including a proxy variable method based on a willingness to pay measure and propensity score matching (PSM) methods. We find that cooperative membership in general has a positive impact on different farm performance indicators but that these effects are driven be specific types of cooperatives.

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Working or Discussion Paper
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JEL Codes:
Q13; Q12; O13; D13
An updated version of this working paper is published as: Verhofstadt, E., Maertens, M. (2014). Smallholder cooperatives and agricultural performance in Rwanda: do organizational differences matter?. Agricultural Economics, 45 (S1), 39-52
Series Statement:
Bioeconomics Working Paper Series

 Record created 2017-04-01, last modified 2018-01-22

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