TRANSACTION COSTS COMPARISON BETWEEN COOPERATIVES AND CONVENTIONAL APPLE PRODUCERS: A CASE STUDY OF NORTHWESTERN CHINA

The study promotes an analytical framework to monetary the transaction costs for the purpose of assessing the different subfields of transaction cost faced by members in cooperatives and non‐cooperatives members, and therefore investigates the role of cooperatives in reducing them using a questionnaire‐based survey in Shaanxi province in China. The quantified result of each transaction cost‐related item suggests that producers can annually save more than a thousand yuan if they participate in cooperatives. Results also highlight that the medium scale producers would be beneficial most from being a member in cooperatives compared with small‐ and large‐scale ones. By implications, supporting programs referring to improve local road condition, access to internet, and subsidize agricultural cooperatives are highly recommended for policy makers.