Determinants of Market Linkage in Developing Countries

When the issue of economic growth and development of a country is raised, one has to take into account that the flourishing growth of smallholder farmers' cooperatives. Here, the concept of market linkage among and between those small holding cooperatives is unquestionable to solve the marketing failures in the contemporary situations in the market place now days. Reducing the challenges they are facing and utilizing their potentials can help to accelerate the economic development of the country as a whole.Cooperatives are ideal means for self- reliance, higher productivity and promotion ethical business development among the society. The response variable market linkage was between the union and its affiliates was measured using the amount of purchase each sample cooperatives purchased from the union and the amount of patronage dividend each cooperatives has got in the last six years. Among the major findings, distance was found to be not significant to influence the market linkage between the union and its affiliates; but variable like number of share and year of affiliation were found significant at 5% level of significance.