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“Structural and institutional heterogeneity among agricultural cooperatives in Ethiopia : does it matter for farmers' welfare?”.Gezahegn TW, Van Passel S, Berhanu T, D'Haese M, Maertens M, Journal Of Agricultural And Resource Economics 46, 325 (2021). http://doi.org/10.22004/AG.ECON.304767
Abstract: This paper analyzes how structural and institutional heterogeneity among irrigation cooperatives shapes the impact of membership on farmers' welfare in northern Ethiopia, using a novel heteroskedasticity-based identification strategy. More specifically, we estimate how cooperative characteristics influence members' income and poverty level. We find that stricter water use regulations have income-enhancing and poverty-reducing effects for farmers. We also find that farmers benefit more from membership in larger, younger, and bottom-up cooperatives initiated through grassroots collective action. Our findings have implications for irrigation development in Ethiopia and call for a better deliberation of organizational heterogeneity in cooperative impact studies
Keywords: A1 Journal article; Economics; Engineering Management (ENM)
Impact Factor: 1
DOI: 10.22004/AG.ECON.304767
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“Do bottom-up and independent agricultural cooperatives really perform better? Insights from a technical efficiency analysis in Ethiopia”. Gezahegn TW, Van Passel S, Berhanu T, D'haese M, Maertens M, Agrekon (2020). http://doi.org/10.1080/03031853.2019.1663223
Abstract: The cooperative landscape in Ethiopia is very heterogeneous with a mixture of remains of the pre-1991 government-controlled system and new post-1991 bottom-up collective action initiatives. This heterogeneity, coupled with a large growth in the number of cooperatives in the country, offers an interesting perspective to study the determinants of the (in)efficiency of cooperatives. In this paper, we analyse the performance of Ethiopian agricultural cooperatives, focusing on the degree of technical (in)efficiency and its determinants. We use the stochastic frontier approach in which we account for heteroskedasticity and the monotonicity of production functions, presenting a methodological improvement with respect to previous technical efficiency studies. The results show that NGO- and government-initiated cooperatives are less efficient than community-initiated ones, implying that governments and NGOs should not interfere too strongly in cooperative formation. Cooperatives with a high degree of heterogeneity in members' participation are found to be about 98% less efficient, while cooperatives that have paid employees are 33% more efficient. Besides, results show that cooperatives in Ethiopia function more efficiently if they incentivize committee members through monetary compensation.
Keywords: A1 Journal article; Engineering Management (ENM)
Impact Factor: 1.3
DOI: 10.1080/03031853.2019.1663223
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“Big is efficient : evidence from agricultural cooperatives in Ethiopia”. Gezahegn TW, Van Passel S, Berhanu T, D'Haese M, Maertens M, Agricultural Economics 50, 555 (2019). http://doi.org/10.1111/AGEC.12509
Abstract: In Ethiopia, there is a renewed interest in agricultural cooperatives as an institutional tool to improve the welfare of smallholder farmers. One of the pathways through which cooperatives benefit their members is scale economies. However, the establishment of cooperatives in Ethiopia seems to pay little attention to the size of the organizations. This article aims at investigating the effect of size on cost efficiency of agricultural cooperatives. More specifically, the purpose is to examine whether a single cooperative can serve a given number of farmers at a lower cost than two or more smaller cooperatives could. We employ the concept of cost subadditivity to compare the cost efficiency of large versus small cooperatives, and by extension unilateral actions. We estimate a flexible production technology using cross-sectional cooperative-level data. Findings show that costs would drop by 78% to 181% if farmers join hands in relatively large rather than small cooperatives.
Keywords: A1 Journal article; Economics; Engineering Management (ENM)
Impact Factor: 1.758
DOI: 10.1111/AGEC.12509
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