Membership of Chinese farmer specialized cooperatives and direct subsidies for farmer households: a multi-province data study

Journal article


Zhang, Jinhua, Wu, Junjie, Simpson, Jestine and Arthur, Clement Lamboi 2019. Membership of Chinese farmer specialized cooperatives and direct subsidies for farmer households: a multi-province data study. The Chinese Economy. https://doi.org/10.1080/10971475.2019.1617928
AuthorsZhang, Jinhua, Wu, Junjie, Simpson, Jestine and Arthur, Clement Lamboi
Abstract

The introduction of direct subsidies to farming households and the development of farmer cooperatives has provided two important approaches to China’s twenty-first century food policy challenges. However, research undertaken largely separates and focuses on subsidies or cooperatives. This neglects their interaction and complementarities. This article seeks to rectify this omission using a survey from 35 farmer specialized cooperatives (FSCs) and 561 farming households in 16 provinces, based on a two-stage treatment effect model. The findings suggest FSCs have become important organizations that improve farmers’ net income. Moreover, usage of agricultural machinery and direct subsidies also result in higher net income, though they have little impact on farmers’ machinery investment. The results provide an evidence source that contributes to debate concerning government subsidy policy. Policy may act more like an income transfer program, since it has little impact on farmers’ investment in agriculture. The study also highlights that there are complementary effects between FSCs and direct subsidies, and that China’s cooperative policy integrated with direct subsidies could be progressive.

KeywordsFarmer Specialized Cooperatives (FSCs), agricultural subsidies, farmers’ net income, agricultural development, China
Year2019
JournalThe Chinese Economy
PublisherTaylor and Francis Group
Digital Object Identifier (DOI)https://doi.org/10.1080/10971475.2019.1617928
Web address (URL)http://hdl.handle.net/10545/624700
hdl:10545/624700
Publication dates29 Jul 2019
Publication process dates
Deposited15 Apr 2020, 11:38
Accepted09 May 2019
ContributorsZhejiang University of Technology, China, Leeds Beckett University and University of Cape Coast
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File Access Level
Open
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