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Determinants of Productivity and Structural Change in a Large Commercial Farm Environment: Evidence from Ukraine

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  • Klaus Deininger
  • Denys Nizalov
  • Sudhir K Singh

Abstract

The coincidence of productivity improvements and growth of agriholdings in Ukraine over the last decade is often interpreted as evidence of technology-induced increasing returns to scale and superiority of very large farms. Panel data for the country’s commercial farms in 2001–2012 do not allow us to reject the hypothesis of constant returns to scale but point toward the importance of farms and rayon- (district) fixed effects. This suggests productivity growth was driven by exit of unproductive and entry of more efficient farms. Higher initial shares of area under farms above 3,000 or 5,000 ha at rayon level significantly reduce subsequent exit, pointing towards one channel through which land concentration may reduce productivity growth.

Suggested Citation

  • Klaus Deininger & Denys Nizalov & Sudhir K Singh, 2018. "Determinants of Productivity and Structural Change in a Large Commercial Farm Environment: Evidence from Ukraine," The World Bank Economic Review, World Bank, vol. 32(2), pages 287-306.
    • Handle: RePEc:oup:wbecrv:v:32:y:2018:i:2:p:287-306.
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    File URL: http://hdl.handle.net/10.1093/wber/lhw063
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    Cited by:

    1. Deininger,Klaus W. & Ali,Daniel Ayalew & Kussul,Nataliia & Shelestov,Andrii Yu & Lemoine,Guido & Yailimova,Hanna, 2022. "Quantifying War-Induced Crop Losses in Ukraine in Near Real Time to Strengthen Local andGlobal Food Security," Policy Research Working Paper Series 10123, The World Bank.
    2. Deininger,Klaus W. & Ali,Daniel Ayalew & Kussul,Nataliia & Lavreniuk,Mykola & Nivievskyi,Oleg, 2020. "Using Machine Learning to Assess Yield Impacts of Crop Rotation : Combining Satellite and Statistical Data for Ukraine," Policy Research Working Paper Series 9306, The World Bank.
    3. Ostapchuk, Igor & Gagalyuk, Taras & Curtiss, Jarmila, 2021. "Post-acquisition integration and growth of farms: the case of Ukrainian agroholdings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), April.
    4. Yatsiv Ihor & Cherevko Heorhiy, 2022. "Economic and Social Consequences of the Concentration of Production in Agricultural Enterprises in Ukraine," Folia Oeconomica Stetinensia, Sciendo, vol. 22(2), pages 224-245, December.
    5. Deininger, Klaus & Ali, Daniel Ayalew & Kussul, Nataliia & Shelestov, Andrii & Lemoine, Guido & Yailimova, Hanna, 2023. "Quantifying war-induced crop losses in Ukraine in near real time to strengthen local and global food security," Food Policy, Elsevier, vol. 115(C).

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