Poverty Reduction Effect of New-Type Agricultural Cooperatives: An Empirical Analysis Using Propensity Score Matching and Endogenous Switching Regression Models

Agricultural cooperatives have been found to effectively alleviate poverty in developing countries because of their specific socioeconomic functions that allow poor households overcome marketing and production constraints. However, cooperative evaluations are inevitably influenced by other alleviation measures rarely consider the characteristics ethnic groups. Using cross-sectional surveys Southwest China employing propensity score matching (PSM) endogenous switching regression (ESR) models, this paper analyzed participation New-type Cooperatives (NACs) areas assessed income impacts NAC membership eliminating unobserved biases group heterogeneity. This study detected heterogeneous policy perceptions behavioral differences between member nonmember groups, PSM ESR model results indicated that, overall, NACs had a positive effect on household income. The was be more plausible as it able reveal significant gaps under counterfactual inference framework. Local policymakers need focus perception earning capability groups increase balanced implementation.