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Corporate farm size determinants in transitional economy: the case of the Moscow region

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  • Svetlov, Nikolai M.

Abstract

A set of dynamic DEA models is applied to investigate size determinants on the Moscow region corporate farms during 1996-2004. The institutional theoretical framework is found to be relevant to explaining corporate farm sizes and their changes in the Moscow region, unlike the neo-classical framework. Farms' opportunities to utilize returns to scale for improving performance are minor. Rank correlation between performance and size indicators is positive. This cannot be comprehensively explained by wider opportunities to grow that are available to best-practice farms. The theoretical expectation of pursuing lower transaction costs as a motivation for a large-scale farm business complies with the estimations.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 102nd Seminar, May 17-18, 2007, Moscow, Russia with number 10017.

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Date of creation: 2007
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Handle: RePEc:ags:eaa102:10017

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Keywords: farm size; return to scale; dynamic DEA; Moscow region; transitional economy; corporate farms.; Agribusiness; Farm Management; Productivity Analysis;

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  1. Dmitri Rylko & Robert W Jolly, 2005. "Russia's New Agricultural Operators: Their Emergence, Growth and Impact," Comparative Economic Studies, Palgrave Macmillan, vol. 47(1), pages 115-126, March.
  2. Lerman, Zvi, 1998. "Does Land Reform Matter? Some Experiences from the Former Soviet Union," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(3), pages 307-30.
  3. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 26(2), November.
  4. Banker, Rajiv D., 1984. "Estimating most productive scale size using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 17(1), pages 35-44, July.
  5. Banker, Rajiv D. & Thrall, R. M., 1992. "Estimation of returns to scale using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 62(1), pages 74-84, October.
  6. Svetlov, Nikolai & Hockmann, Heinrich, 2005. "Technical and economic efficiency of Russian corporate farms: the case of the Moscow region," IAMO Discussion Papers 84, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  7. Finn R. Førsund & Lennart Hjalmarsson, 2002. "Calculating the scale elasticity in DEA models," ICER Working Papers 28-2002, ICER - International Centre for Economic Research.
  8. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November.
  9. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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