Effort, Technology and the Efficiency of Agricultural Cooperatives

Seung Ahn, Josef C. Brada, Jose Mendez

Research output: Contribution to journalArticle

7 Scopus citations

Abstract

The inefficiency of cooperative agriculture relative to private farms is often attributed to difficulties in monitoring or poor incentives. We develop a model to show that, in technologies with numerous sequential steps, even small shortfalls in worker effort can result in large output declines. Using data on cooperative and private farms in El Salvador, we find greater shortfalls in efficiency between cooperatives and private farms, as well as among cooperatives, for coffee, a crop requiring numerous steps in its cultivation, than for maize and sugar, which require fewer steps. Thus the undersupply of effort in cooperatives may be less than differences in productivity suggest, and cooperative agriculture is most likely to be successful where production does not involve many sequential steps.

Original languageEnglish (US)
Pages (from-to)1601-1616
Number of pages16
JournalJournal of Development Studies
Volume48
Issue number11
DOIs
StatePublished - Nov 1 2012

ASJC Scopus subject areas

  • Development

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