Adaptive efficiency of agricultural cooperatives in providing input sector; With emphasis on transaction cost economics approach  (Case study: South Khorasan province)

Amiri, Hadi; Googerdchian, Ahmad; Kiani, Gholam Hussein; Alizadeh, Amir

Adaptive efficiency of agricultural cooperatives in providing input sector; With emphasis on transaction cost economics approach (Case study: South Khorasan province)

Authors

¹ assistant professor at Isfahan University

² MSc student at Isfahan University

Abstract

The use of cooperative mechanism in all sectors, especially the agricultural sector, is very important. Agricultural cooperatives are used for providing services such as provision of agricultural inputs, financing and marketing of agricultural products. This paper examines adaptive efficiency of South khorasan province's cooperativesin providing agricultural inputs with using of transaction cost economics approach. Transaction cost economics can be recognized by combining two different mechanisms and characteristics of transactions as adaptive efficiency case. A change in these characteristics will change the usable mechanism of actor; in this case that mechanism will be selected which enters the lowest transaction cost. Thus, using an econometric model, relationship between agricultural input provision mechanisms (cooperative, non-cooperative and hybrid) with the characteristics of transactions (asset specificity, uncertainty, frequency of transactions) and the control variables have been examined. They are quantified through a questionnaire survey.
The results show that some indices of transaction cost economics are significant. For example, under threat of superior competitors in the brand, probability of inputs seller’ cheating, Impact of sanctions and increase in the amount of the volume of purchased inputs agricultural cooperatives have adaptive efficiency. Cooperatives' development requires careful deliberation of their adaptive efficiency.

Keywords