Comparative Efficiency of Agricultural Cooperatives and Conventional Firms in a Sample of Quasi‐Twin Companies

24 Pages Posted: 4 Feb 2019

See all articles by Maria Giovanna Brandano

Maria Giovanna Brandano

affiliation not provided to SSRN

Claudio Detotto

Università di Corsica (Laboratoire LISA - UMR 6240 CNRS); CRENoS (Centre for North South Economic Research)

Marco Vannini

Università degli Studi di Sassari; Universita di Cagliari - Centre for North South Economic Research (CRENOS)

Date Written: March 2019

Abstract

The resilience of cooperatives and their positive contribution to employment in times of crisis is well established. However, their overall economic performance relative to conventional firms is still controversial, casting doubt on the ability of this alternative organizational form to govern the fundamental drivers of productivity. To shed new light on the issue, we study the comparative technical efficiency of agricultural cooperatives (ACs) and conventional firms (CFs), drawing on a unique data set comprising all wine‐producing companies in Sardinia (Italy) from 2004 to 2009. Due to the similarity of the habitats in which the firms operate and the careful measurement of several key inputs, the observed units are ‘twins’ in all non‐organizational respects, providing an ideal setting for comparison. Having generated efficiency scores through Data Envelopment Analysis (DEA), we regressed the scores on external covariates and ownership type using a pooled truncated maximum likelihood formulation. Our findings, which survive correction for spatial correlations, indicate that cooperatives are less technically efficient than their capitalist counterparts and struggle more to adapt to extreme weather fluctuations. Both results are particularly worrying in light of the main challenges facing the wine industry in the near future: liberalization of EU planting rights and climate change.

Keywords: Climate, cooperatives, data envelopment analysis, spatial econometrics

JEL Classification: C24, L25, P13, Q13, Q54

Suggested Citation

Brandano, Maria Giovanna and Detotto, Claudio and Vannini, Marco, Comparative Efficiency of Agricultural Cooperatives and Conventional Firms in a Sample of Quasi‐Twin Companies (March 2019). Annals of Public and Cooperative Economics, Vol. 90, Issue 1, pp. 53-76, 2019. Available at SSRN: https://ssrn.com/abstract=3327434 or http://dx.doi.org/10.1111/apce.12220

Maria Giovanna Brandano (Contact Author)

affiliation not provided to SSRN

No Address Available

Claudio Detotto

Università di Corsica (Laboratoire LISA - UMR 6240 CNRS) ( email )

Jean Nicoli BP 52
Corte, Corsica 20250
France

HOME PAGE: http://umrlisa.univ-corse.fr/

CRENoS (Centre for North South Economic Research) ( email )

Via Muroni, 25
Sassari, 07100
Italy

HOME PAGE: http://crenos.unica.it/crenos/

Marco Vannini

Università degli Studi di Sassari ( email )

Via Regina Margherita 15
07100 Sassari
Italy

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
ITALY

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