Corruption factor in the use of allocated funds for the development of animal husbandry

Agricultural cooperatives are seen as an efficient way for smallholder farmers to create bargaining power in order to achieve poverty reduction and food security. However, the success of these cooperatives depends on their ability to maintain their social capital, which is at the core of collective...

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Bibliographic Details
Published in:E3S Web of Conferences 2021-01, Vol.273, p.8019
Main Author: Kirilenko, Victoria
Format: Article
Language:English
Subjects:
Agricultural cooperatives
Animal husbandry
Corruption
Food security
Fraud
Heterogeneity
Poverty
Small farms
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Summary:Agricultural cooperatives are seen as an efficient way for smallholder farmers to create bargaining power in order to achieve poverty reduction and food security. However, the success of these cooperatives depends on their ability to maintain their social capital, which is at the core of collective action. Using unique data collected from 511 agricultural cooperatives in 12 districts of Tigray region in northern Ethiopia, this paper examines the effects of cooperative size on conflict, fraud, and distrust. We used instrumental variables (IV) probit estimation techniques, accounting for endogeneity of membership size, to confirm that cooperative size does affect the occurrence of conflict, fraud, and trust. The results also indicate that other influencing factors include: cooperative age, number of employees, payment of dividends based on transaction volume, and heterogeneity of member goals.
ISSN:2267-1242
2555-0403
2267-1242
DOI:10.1051/e3sconf/202127308019