Are Cooperatives More Productive than Investor‐Owned Firms? Cross‐Industry Evidence from Portugal

37 Pages Posted: 7 May 2018

See all articles by Natália P. Monteiro

Natália P. Monteiro

University of Minho - Economic Policies Research Unit (NIPE)

Odd Rune Straume

University of Minho - Economic Policies Research Unit (NIPE); CESifo (Center for Economic Studies and Ifo Institute)

Date Written: June 2018

Abstract

We analyse empirically whether cooperatives and investor‐owned firms differ in terms of productive efficiency. Using rich Portuguese panel data covering a wide range of industries, we apply two different empirical approaches to estimate potential differences in productive efficiency. The results from our benchmark random‐effects model show that cooperatives are significantly less productive, on average, than investor‐owned firms, both at the aggregate level and for most of the industries considered. However, the results derived from a System‐GMM approach, which is our preferred empirical strategy, are much less conclusive, and we cannot conclude that cooperatives are generally less efficient that investor‐owned firms. With either approach, though, we find no evidence that cooperatives are more productive than investor‐owned firms in any industry.

Keywords: Cooperatives, investor‐owned firms, productive efficiency

JEL Classification: D24, J54, P12, P13

Suggested Citation

Monteiro, Natália P. and Straume, Odd Rune, Are Cooperatives More Productive than Investor‐Owned Firms? Cross‐Industry Evidence from Portugal (June 2018). Annals of Public and Cooperative Economics, Vol. 89, Issue 2, pp. 377-414, 2018, Available at SSRN: https://ssrn.com/abstract=3173324 or http://dx.doi.org/10.1111/apce.12201

Natália P. Monteiro (Contact Author)

University of Minho - Economic Policies Research Unit (NIPE) ( email )

Campus de Gualtar
Braga, 4710-057
Portugal

Odd Rune Straume

University of Minho - Economic Policies Research Unit (NIPE) ( email )

Campus de Gualtar
Braga, 4710-057
Portugal

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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