Facing the difficulties in developing industries in rural regions in china, farmer’s co-operative is proposed as a valid solution to transform the excess labour force from agriculture to manufacture and service industries. The co-operative has two main advantages: centralised production and service provision that drive up the profitability and competitiveness of the production. However, the growth of co-operatives is obstructed by numerous barriers, namely, lack of funds and lack of collaboration. Targeting these two defects, this paper proposes two policy recommendations: first, direct government service provision and financial aid to expand co-operative service range and basic equipment; second, promote a shareholder based co-operative model to enhance the interest linkage between farmer members, thus reducing the transaction costs of production. 

Yang Meng. How does rural village in China achieve industry integration to reduce labour force surplus through farmers’ co-operatives?. International Journal of New Developments in Engineering and Society (2021) Vol.5, Issue 1: 24-27. https://doi.org/10.25236/IJNDES.2021.050105.

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