Study On The Effect Of Scale Of Operation And Social Trust On The Development Of Chinese Farmer Specialized Cooperatives

Since the promulgation of the law of People’s Republic of China on farmer cooperatives in 2006,the number of farmer cooperatives in China has been increasing by leaps and bounds.As of December 2016,the registered peasant cooperatives have reached one million and Six hundred and eighty thousand,and there are more than 2 peasant cooperatives in each administrative village.However,some scholars are worried about the quality of the development of farmer cooperatives,and they think that the development of farmer cooperatives in China is of quantity and quality.The contrast between reality and theoretical expectation indicates that there is an urgent need to reflect on the relevant theoretical perspectives of farmer cooperatives.At present,domestic and foreign scholars in the field of farmer cooperatives have been doing a lot of research,most of which stressed that the advantages of cooperatives and farmers cooperatives can reduce transaction costs,but ignored their disadvantages,namely the farmer cooperatives also increased the organization cost.However,due to the small scale and low social trust of farmers,the organization cost is high,which is unfavorable to the development of farmer cooperatives.However,there are few literatures to analyze and empirically study the influence of scale of operation and social trust on the development of farmer cooperatives.In view of this,this paper first uses transaction cost theory to analyze the influence of scale of operation and social trust on the development of farmer cooperatives.By using large sample survey data in Jiangsu Province,Jilin Province and Sichuan Province in 2009 and 2014,this paper,from the perspective of the organization cost,studies the influence to the development of empirical research on the management scale of social trust and two factors on Farmers’ cooperatives.The main contents of this paper are as follows:(1)From the perspective of organizational cost,the paper discusses the influence of scale of operation and social trust on the development of farmer cooperatives.This study considers that the scale of operation and social trust of farmers affect the development of farmer cooperatives by influencing the organization costs of farmers cooperatives.The household business scale and social trust have a significant impact on the development of farmer cooperatives because farmers in business scale,social trust will greatly affect the farmer cooperative organization cost and development and organization of high cost disadvantage will seriously restrict the farmers’ cooperatives.(2)An empirical study is influenced by scale of operation and social trust on the development of farmer cooperatives.The influence of the hypothesis empirical test of farmers’ social scale,the development of farmer cooperatives Village trust included the higher the farmers with larger scale and the village social trust degree,the lower organization cost,the stronger service function of farmer cooperatives,more conducive to the development of farmer cooperatives.Using the large sample random survey data of Jiangsu,Jilin and Sichuan,the econometric analysis was carried out,and the endogenous problem of the model was alleviated by lagged variables.The main results were as follows:the function of China’s farmers’cooperatives service is a bit weak itself.The higher the village of farmers per household,the larger the scale the social trust degree turns to be.Then the probability of village would have a strong service function of higher farmer cooperatives.For the reason that China’s farmers’household business area which related to the United States and Europe is generally small,and the influence on the people’s commune movement,the degree of social trust of Chinese farmers is likely not high,the high cost of organization of farmer cooperatives in China affects the development of farmer cooperatives.The policy advice of this study lies in the rational view of the role of farmer cooperatives in agriculture and rural development.Although farmer cooperatives have their unique system advantages,they also have their own shortcomings.Our country’s small scale of operation,especially,which coupled with low social trust,makes the disadvantages of farmers’ cooperatives more prominent,which is one of the important reasons for the current development of farmers’ cooperatives in china.The government should not formulate the quantitative objective of the development of farmer cooperatives,and not develop peasant cooperatives for the development of peasant cooperatives.What the government should do is to support the policy more resources for farmers’ organizational capacity building,as far as possible to the larger scale of operation of the farmers involved,to enhance the cognitive level of farmers’ cooperatives of farmers.Farmers cultivate the ability of management and operation of farmer cooperatives to enhance the degree of trust among members of the organization to reduce the cost of farmers cooperatives according to local conditions,and promote the development of farmer cooperatives step by step.