Welfare effects of vegetable producers' inclusiveness in supply chain coordination

Direct effects and spillovers

Bibliographic Data

ID21294987
AuthorsQiao Liang (0000-0001-7473-7863, Zhejiang University), Lin Li (0000-0003-2896-7988), Rongrong Bai (0000-0001-7021-634X, Zhejiang University)
Year2021
Volume123
Issue4
Pages1305-1323
Publication date2021-02-22
Open AccessYes
TypeARTICLE
VenueBritish Food Journal (JOURNAL)
Journal identifiersISSN: 0007-070X • E-ISSN: 1758-4108
PublisherEmerald (PUBLISHER)
DOI10.1108/bfj-07-2020-0652
OpenAlexW3110889356
LanguageEN
Citations received2
References cited45

Purpose The purpose of this paper is to estimate the effect of vegetable producers' inclusiveness in supply chain coordination on vegetable production performance and potential spillover effect on farm and non-farm income. Design/methodology/approach A comprehensive dataset comprised of 410 paired vegetable producers in China is applied. Propensity score matching (PSM) estimation method is used to control for the selection bias problem. Findings The empirical results indicate that contracting farming does not have significant effect on yield or profit of vegetable production, but promote producers to obtain quality certification. In comparison, cooperative membership has positive effects on the yield, profit and quality certification of producers. Additionally, cooperatives generate positive spillover effects on members' farm and non-farm income, though the results are sensitive to unobserved factors. The inclusion of spillover effects helps to find out the potential unobserved effects which are neglected by most studies and design better policies to promote the development of agricultural companies and farmer cooperatives. Originality/value First, empirical evidence is provided for theories regarding the roles of different supply chain coordination modes on producers. Second, the analysis on evaluating the effects of supply chain coordination also considers the spillover effect on the farming of other products and even non-farm work of involved producers. Third, a unique dataset comprised of 420 paired vegetable producers, based on an extensive survey is built

Agribusiness · Agriculture · Average treatment effect · Business · Certification · Contract farming · Economics · Industrial organization · Microeconomics · Originality · Production (economics) · Profit (economics) · Propensity score matching · Quality (philosophy) · Selection bias · Spillover effect · Supply chain · Welfare · Agricultural Innovations and Practices · Global trade, sustainability, and social impact · Marketing · Taxation and Compliance Studies

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