Epsilon Open Archive

Abstract

When the Soviet kolkhozy and sovkhozy were converted, a large number of agricultural production co-operatives was created. Most of these co-operatives still exist in Russia and some of them have a strong market position, accounting for almost one-third of the aggregate volume produced by large farms. This study explores whether social capital might be the explanation for this relative success, i.e. that members support their co-operative because they trust their fellow members as well as the leadership. Interviews with co-operative members resulted in 1401 usable answers. The results from an ordered logit model indicate that social capital plays a partial role. Members who consider co-operatives to be an efficient business form value social ties to other members, even though the leadership does not enjoy much social capital.