Can agricultural cooperatives reduce poverty? Heterogeneous impact of cooperative membership on farmers’ welfare in Rwanda

We analyze the inclusiveness and effectiveness of agricultural cooperatives in Rwanda. We estimate mean income and poverty effects of cooperative membership using propensity score matching techniques. We analyze heterogeneous treatment effects across farmers by analyzing how estimated treatment effects vary over farm and farmer characteristics and over the estimated propensity score. We find that cooperative membership in general increases income and reduces poverty and that these effects are largest for larger farms and in more remote areas. We find evidence of a negative selection as impact is largest for farmers with the lowest propensity to be a cooperative member.

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Working or Discussion Paper
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JEL Codes:
Q13; Q12; Q18
An updated version of this working paper is published as: Verhofstadt, E., Maertens, M. (2014). Can Agricultural Cooperatives Reduce Poverty? Heterogeneous Impact of Cooperative Membership on Farmers' Welfare in Rwanda. Applied Economic Perspectives and Policy, online.
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Bioeconomics Working Paper Series

 Record created 2017-04-01, last modified 2020-10-28

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