Member Investment Willingness in Agricultural Cooperatives in Shaanxi (China)

This study analyzes characteristics determining member’s willingness to invest in cooperatives using ordered logit model. The data were collected in a field survey among 122 cooperative members in north-central China. The descriptive analysis of survey evidence suggests that cooperatives in China generally having poor ability to deliver the processing services related to product package, grading, and storage, performing worse in profitability, inability of providing returns to capital and obtaining agricultural loan. The regression results demonstrate that members’ farm size, their satisfaction with cooperative price preferential services, attitudes toward cooperative operational scale and development potential have statistically significant impact on willingness to invest. Keywords—Cooperatives, investment willingness, member, ordered logit.