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Evaluating the Effects of Price and Trade Liberalisation on the Technical Efficiency of Agricultural Production in a Transition Economy: The Case of Russia

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Author Info
Sotnikov, Sergey

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Abstract

A stochastic production function is estimated, using data on agricultural output and inputs for 75 Russian regions for 1990-95. Regional technical efficiency scores are calculated as the ratio of actual to potential output. The average efficiency score improved from 0.77 to 0.92 in 1991-93 and then declined to 0.78 by 1995. Losses from technical inefficiency in terms of under-production were cut by more than 20 per cent during 1991-95. Short-run overall improvements in technical efficiency were achieved primarily through contraction of input use relative to output. The role of technological change in improving efficiency was negligible. Additional capital investments in new technologies and management training will probably be needed to achieve further efficiency gains. Investments could be quite profitable, since real returns to capital increased substantially during the reforms. Progress in reducing technical inefficiency was uneven across the regions. Regions that still employ price controls and subsidise production are experiencing increases in technical inefficiency. Copyright 1998 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press for the Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 25 (1998)
Issue (Month): 3 ()
Pages: 412-31
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Handle: RePEc:oup:erevae:v:25:y:1998:i:3:p:412-31

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  1. Kurkalova, Lyubov A. & Jensen, Helen H., 2000. "Technical Efficiency of Grain Production in Ukraine," Staff General Research Papers 1890, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  2. Bokusheva, Raushan & Hockmann, Heinrich, 2005. "Production Risk and Technical Inefficiency in Russian Agriculture," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24610, European Association of Agricultural Economists. [Downloadable!]
  3. Karagiannis, Giannis & Sarris, Alexander, 2002. "Direct Subsidies and Technical Efficiency in Greek Agriculture," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24868, European Association of Agricultural Economists. [Downloadable!]
  4. Mathijs, Erik & Vranken, Liesbet, 2000. "Farm Restructuring And Efficiency In Transition: Evidence From Bulgaria And Hungary," 2000 Annual meeting, July 30-August 2, Tampa, FL 21886, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  5. Erik Mathijs, Liesbet Vranken, 2001. "Human Capital, Gender and Organisation in Transition Agriculture: Measuring and Explaining the Technical Efficiency of Bulgarian and Hungarian Farms," Post-Communist Economies, Taylor and Francis Journals, vol. 13(2), pages 171-187, June. [Downloadable!] (restricted)
  6. Kurkalova, Lyubov A. & Carriquiry, Alicia L., 2000. "Bayesian Estimation of Technical Effeciency of a Single Input," Staff General Research Papers 1910, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
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