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On the diversity of the effects of the state support for agriculture

Author

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  • Nikolai M. Svetlov
  • Renata G. Yanbykh
  • Dariya A. Loginova

Abstract

In this paper, we assess the effects of agricultural state support of corporate farms on their revenues from agricultural production sales in 14 Russian regions that differ in technology, environment and institutional conditions. In addition to the direct effect of the state support, the indirect effects via labor and capital are revealed. For this purpose, we identify production functions and statistical models of production factors for each of these regions separately. We find out diverse effects of the state support on revenues among the regions. Positive effects prevail. Negative effects are mainly caused by labor reductions that follow subsidy inflows. Another cause of negative effects is the soft budget constraints phenomenon.

Suggested Citation

  • Nikolai M. Svetlov & Renata G. Yanbykh & Dariya A. Loginova, 2019. "On the diversity of the effects of the state support for agriculture," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 4.
    • Handle: RePEc:nos:voprec:y:2019:id:2164
    DOI: 10.32609/0042-8736-2019-4-59-73
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    Cited by:

    1. Daria Loginova & Stefan Mann, 2022. "Institutional contributions to agricultural producer price stability," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-22, December.

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