Study on the Economies Scale and Scope of Farmers' Professional Cooperatives——Based on the Survey Data of Shanxi Province
Wang Zheng-bing
Abstract
Wang Zheng-bing
Abstract
The paper researches the economies of scale and scope of 44 fruit and vegetable cooperatives in Shanxi Province by using SUR method and the fixed period generalized translog cost model.It is found that the cooperatives have slight economies of scale and significant economies of scope as a whole;the outputs of main products,fertilizer and agricultural films have product-specific economies of scale which means by increasing these inputs would decrease the total cost in long run.The main products joints with chemical have product-specific economies of scope,which their joints would save more cost than other outputs joints.Therefore,the output of main production,fertilizer and agricultural films have larger advantage,which could make the the proportion of outputs cost less than the cost of inputs and therefore achieve the economies of scale and scope of the cooperatives.
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The paper researches the economies of scale and scope of 44 fruit and vegetable cooperatives in Shanxi Province by using SUR method and the fixed period generalized translog cost model.It is found that the cooperatives have slight economies of scale and significant economies of scope as a whole;the outputs of main products,fertilizer and agricultural films have product-specific economies of scale which means by increasing these inputs would decrease the total cost in long run.The main products joints with chemical have product-specific economies of scope,which their joints would save more cost than other outputs joints.Therefore,the output of main production,fertilizer and agricultural films have larger advantage,which could make the the proportion of outputs cost less than the cost of inputs and therefore achieve the economies of scale and scope of the cooperatives.
Key concepts: Scope (computer science), Economies of scope, Economies of scale, Product (mathematics), Scale (ratio), Production (economics), Agriculture, Business