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An examination of economic efficiency of Russian crop production in the reform period

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  • Stefan Osborne
  • Michael A. Trueblood

Abstract

This article examines economic efficiency (EE) of crop production of Russian corporate farms for 1993-1998. EE declined over the period, due to declines in both technical and allocative efficiency. Technical efficiency (TE) results indicate that output levels could have been maintained while reducing overall input use by an average of 29-31% in 1998, depending on the method used, while the allocative efficiency (AE) results show that costs could have been reduced about 30%. The EE scores show that Russian corporate farms could have increased efficiency by reducing the use of all inputs, particularly fertilizer and fuel. Russian agriculture inherited machinery-intensive technology from the Soviet era, which may be inappropriate given the relative abundance of labor in the post-reform environment. Investment constraints have prevented the replacement of old machinery-intensive technology with smaller scale machines that allow for a more labor-using technology. Copyright 2006 International Association of Agricultural Economics.

Suggested Citation

  • Stefan Osborne & Michael A. Trueblood, 2006. "An examination of economic efficiency of Russian crop production in the reform period," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 25-38, January.
  • Handle: RePEc:bla:agecon:v:34:y:2006:i:1:p:25-38
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    1. Lerman, Zvi & Kislev, Yoav & Kriss, Alon & Biton, David, 2001. "Agricultural Output And Productivity In The Former Soviet Republics," 2001 Annual meeting, August 5-8, Chicago, IL 20471, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Lerman, Zvi & Kislev, Yoav & Kriss, Alon & Biton, David, 2001. "Agricultural Output And Productivity In The Former Soviet Republic," Discussion Papers 14999, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
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    Cited by:

    1. Belyaeva, Maria & Hockmann, Heinrich & Koch, Friedrich, 2014. "Impact of regional diversity on production potential: an example of Russia," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 168924, European Association of Agricultural Economists.
    2. Nyanjong', Oyugi Johana & Lagat, Job, 2012. "Analysis of efficiency in sugarcane production: the case of men and women headed households in SONY sugar out -grower zone, Rongo and Trans-Mara districts, Kenya," MPRA Paper 40796, University Library of Munich, Germany.
    3. Hahlbrock, Konstantin & Hockmann, Heinrich, 2011. "Does Group Affiliation Increase Productivity And Efficiency In Russia’S Agriculture? Evidence From Agroholdings In The Belgorod Oblast," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114579, European Association of Agricultural Economists.
    4. Bezlepkina, Irina V. & Oude Lansink, Alfons G.J.M., 2003. "Liquidity And Productivity In Russian Agriculture: Farm-Data Evidence," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25824, International Association of Agricultural Economists.
    5. Hahlbrock, Konstantin & Hockmann, Heinrich, 2011. "Influence Of The Integration Of Agroholdings With Russian Farms On Total Factor Productivity And Its Subcomponents," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114508, German Association of Agricultural Economists (GEWISOLA).

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