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Abstract
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.