This paper analyzes the optimal scales for credit and economic businesses of primary agricultural cooperatives in urban and rural areas, using the financial data of 1,099 cooperatives in 2011. Measurements are obtained from the estimation of multi-output cost functions. The results find that most pr...
This paper analyzes the optimal scales for credit and economic businesses of primary agricultural cooperatives in urban and rural areas, using the financial data of 1,099 cooperatives in 2011. Measurements are obtained from the estimation of multi-output cost functions. The results find that most primary cooperatives currently show an economies of scale. But rural cooperatives require a five times scale-up to reach an optimal scale for credit business. However, all cooperatives did not attain an optimal scale for their economic business.
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