Farmers’ Cooperatives’ Poverty-Reducing Roles in Agricultural Supply Chain Finance
ShenYun(申云),LiQinghai(李庆海)andYangJing(杨晶)...........................................................................
Abstract:
Agricultural supply chain finance ( SCF) plays a vital role in reducing poverty and linking smallholders with broader markets. By creating a multi-dimensional poverty index (MPI) for farmer households with A-F binary boundary method, this paper employs the propensity score matching and difference-in-difference (PSM-DID) method to estimate how farmers’ cooperatives run by various entities affect farmer households’ multidimensional poverty status. Our findings suggest that: (i) Each percentage of increase in the probability of farmers’ access to SCF credit from their cooperatives makes it 8% and 10% more likely for farmers’ MPI and multi-dimensional poverty order to decrease with a significant poverty-reducing effect. (2) SCF credit from farmers’ cooperatives run by large farmers, agribusinesses and the village cadres are significantly poverty-reducing for fulltime poor farmers. (iii) The higher non-farm incomes as a share of farmers’ total income, the less poverty-reducing SCF credit from farmers’ cooperatives run by large farmers and villagers becomes, and the more poverty-reducing SCF credit for agribusiness everyone cooperatives becomes. These findings highlight the importance of policy guidance for farmers’ cooperatives to offer appropriate credit products and solutions according to local conditions, which is vital to maximizing the effects of targeted financial poverty reduction.
Keywords:
申云杨晶
farmers’ cooperatives, supply chain finance, poverty-reducing effect, multidimensional poverty, PSM-DID
JEL Classification Codes: Q14, G20
DOI: 1 0.19602/j .chinaeconomist.2020.05.06
1. Introduction and Literature Review
李庆海
In more than four decades of reform and opening up since 1978, China has lifted 700 million rural poor out of poverty. According to the National Bureau of Statistics (NBS), China’s rural poor populations and poverty incidence dropped to 16.60 million and 1.7% at the end of