Abstract:
The role of cooperatives in fostering inclusive growth is unevenly
distributed across countries and regions. This disparity is gauged by the World
Cooperative Monitor (WCM) data which shows the top 300 performing cooperatives.
Invoking the endogenous growth theory, this study analysed the effect of
cooperatives on economic growth across Global North-South countries. Specifically,
the study used largely available data but widely unused panel data from WCM to
analyse the trends and patterns of cooperatives' performance from 2016 to 2023.
Furthermore, comparative analysis on the role of cooperatives in bolstering inclusive
economic growth was empirically analysed using descriptive statistics and a Biascorrected
linear dynamic fixed/rand effect model and findings were validated by a
dynamic GMM estimator. The study sample was drawn from the 30 countries
performing well in cooperatives in the world. Descriptively, the findings reveal that
cooperatives in the Global South performed less than those in the Global North due
to low institutional quality values. Cooperatives in African countries are marginally
represented in the global rank. Further analysis shows that cooperatives have positive
and significant effect on economic growth and once are supported with a strong
institutional quality framework tend to elevate further economic development. The
findings of this study shed light on the existing cooperative growth disparities across
countries. In this context, members, cooperative leaders, and cooperative
development partners are informed to foster contemporary cooperative
transformative motives by emphasising policies related to bolstering institutional
quality for inclusive growth to occur. An interesting topic for a follow-up study
would be documenting and consolidating cooperatives data for the Global South
countries which can further enhance empiric studies across regions.
