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Based on a survey on farmers in Finland, this study examined the extent to which farmer co-operatives enjoy social capital within their memberships as they become internationalised. Findings from limited dependent variable regressions suggest that one group of farmers is loyal to the co-operative and opposes its foreign investments. Other groups have lower levels of social capital and switch membership status between multiple co- operatives or opt out of co-operatives. These farmers welcome international investment. Thus, internationalisation of co-operatives seems to affect members’ trust in the co-operative differently and increasing heterogeneity within memberships may give rise to governance problems.

Keywords: Agricultural co-operative ; internationalisation ; social capital ; Multi-Nominal Logit model ; Finland

Subject(s): Institutional and Behavioral Economics

Issue Date: 2014-08

Publication Type: Conference Paper/ Presentation

PURL Identifier:

Total Pages: 6

Record appears in: European Association of Agricultural Economists (EAAE) > 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia

Autor: Ollila, Petri ; Nilsson, Jerker ; Hess, Sebastian


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