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Impact of Chinese Agribusiness Entrepreneurs on the Local Land Market in the Russian Far East

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  • Richard T. Gudaj
  • Fujin Yi
  • Svetlana Mishchuk
  • Tatiana A. Potenko
  • Ivan Zuenko
  • Zvi Lerman

Abstract

Chinese originally migrated to the Russian Far East (RFE) to fill a labor shortage on collective farms. In more recent decades, some Chinese migrants have chosen to lease land from Russian farmers to manage their own farms. Rising soybean prices and the trade war between China and the United States have increased demand for land capable of producing soybeans. Thus, Chinese farmers in the RFE compete for land with Russians. The Chinese also contribute positively to local food security by increasing food availability and accessibility. This study uses an econometric model to analyze the impact of Chinese on local land markets in the RFE. Financial support for Russian farmers by the government depresses their demand for land; rising soybean prices and the employment of Chinese farm workers by Russian farmers encourage farm expansion, resulting in higher land prices. Selling farm produce to Chinese merchants increases the amount of land owned, cultivated, and rented by Russian farmers.

Suggested Citation

  • Richard T. Gudaj & Fujin Yi & Svetlana Mishchuk & Tatiana A. Potenko & Ivan Zuenko & Zvi Lerman, 2020. "Impact of Chinese Agribusiness Entrepreneurs on the Local Land Market in the Russian Far East," American Journal of Economics and Sociology, Wiley Blackwell, vol. 79(5), pages 1417-1454, November.
    • Handle: RePEc:bla:ajecsc:v:79:y:2020:i:5:p:1417-1454
    DOI: 10.1111/ajes.12362
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    References listed on IDEAS

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