The impact of cooperatives’ transportation services on farm income: Evidence from tobacco farmers in Guizhou, China

Abstract

Abstract In mountainous areas, access to markets and transportation services is particularly important for farmers. Following government initiatives, agricultural cooperatives in China have begun to offer transportation services as part of their service portfolio. This study estimated the impact of cooperatives’ transportation services on tobacco farmers’ farm income. Using survey data from 337 households in Guizhou Province, China, a two‐step control function was used to correct for selection bias. Results showed that access to transportation services increased yearly farm income by up to 4,636 RMB Yuan. The possible reasons for this large increase are discussed and conclusions were drawn for rural development policy. [EconLit citations: Q13, L23]