The Impact of Demonstration Cooperatives on the “Empty Shell” of Farmer Professional Cooperatives in China

Abstract

With the advancement of farmer professional cooperatives in China, the prevalence of the “empty shell” phenomenon has posed a significant challenge to the health and sustainability of these cooperatives. Utilizing data from 1570 such cooperatives in Guizhou Province, China, this study uses the multi-time differential model and the spatial Durbin model to study the impact of demonstration cooperatives on the “empty shell” of cooperatives and the spatial spillover effect of demonstration cooperatives. The study results show the following: (1) Agricultural professional cooperatives are rated as national or provincial demonstration cooperatives, which are conducive to their development, and the policy evaluation of demonstration cooperatives can effectively inhibit the “empty shell” phenomenon of cooperatives. (2) National and provincial demonstration cooperatives can effectively inhibit the “empty shell” of cooperatives in the region. (3) When there are provincial demonstration cooperatives in the surrounding areas, there will be a spatial spillover effect and the empty shell of regional cooperatives will be inhibited. However, to restrain the “empty shell” of cooperatives, it is essential to capitalize on the spatial policy influence of “demonstration cooperatives” while being vigilant against potential spatial siphoning effects.