THE PROPENSITY TO COOPERATE AMONG PEASANT FARMERS IN ALGERIA: AN ANALYSIS FROM BIVARIATE APPROACH

Abstract

This paper analyzes farmers’ decision to transact with the cooperatives, i.e., the propensity to cooperate. We aim to empirically analyze the driving factors affecting both cooperative membership and purchasing decisions of farmers in Algeria. The survey data was conducted within the National Program of Research including 625 sampled farmers. The study distinguishes four types of participation according to farmers’ decision of membership and purchasing inputs. The empirical results from the Bivariate Probit regression model suggest that specialization, human capital, access to services, and geographic location are significant factors that influence farmers’ propensity to cooperate and participation behavior as a devoted membership. This empirical finding has important implications for Algerian policy-makers in their efforts to promote efficient agricultural markets through producer cooperatives and other agricultural policies.

Keywords

• Cooperatives
• memberships
• inputs purchase
• asset specificity
• farming
• Algeria