Regional characteristics and technical efficiency in Korean agricultural cooperatives

초록

This study applies Stochastic Frontier Analysis (SFA) to examine the determinants of technical inefficiency in regional agricultural cooperatives and to assess how technical efficiency affects profitability in urban and rural contexts. Incorporating regional characteristics, population ageing, land prices, and industrial structure, reveals that the drivers of technical efficiency differ across regions. Variations in ageing composition and land price dynamics affect efficiency in distinct ways, demonstrating that the regional socioeconomic environment is a key factor in cooperative performance. The findings show that a uniform management strategy is ineffective. Urban cooperatives should leverage efficiency-driven growth strategies, whereas rural cooperatives should strengthen inclusive and sustainable financial services that balance operational stability with community development. In ageing regions, pension-linked savings and digital financial services can sustain elderly participation, while manufacturing-based regions may benefit from partnership-oriented credit programmes such as supply chain finance. Overall, improving efficiency requires region-specific strategies aligned with local economic and demographic conditions.

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