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What Kind of Technological Change for Russian Agriculture? The Transition Crisis of 1991-2005 from the Induced Innovation Theory Perspective

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  • Heinrich Hockmann
  • Michael Kopsidis

Abstract

This article explains the lasting transition crisis of Russian agriculture by applying Hayami & Ruttan's theory of induced innovation. The empirical analysis uses Russian farm data. For various types of farms factor intensities and partial factor productivities are calculated to identify differences in productivity between them. We identify the mechanism through which institutional frictions in Russia influence the choice of technology and the adaptation of technological change. Finally, policy recommendations are derived to make technical change more consistent with relative factor supplies and prices, and improve productivity, especially of inefficient farm types. In our view nothing speaks in favour of expensive Western 'high-tech' machinery imports to enhance the efficiency of Russian farms (especially larger ones). Until now the poor operation of domestic markets in Russia has obstructed a sufficient supply of Russian technology consistent with relative scarcities.

Suggested Citation

  • Heinrich Hockmann & Michael Kopsidis, 2007. "What Kind of Technological Change for Russian Agriculture? The Transition Crisis of 1991-2005 from the Induced Innovation Theory Perspective," Post-Communist Economies, Taylor & Francis Journals, vol. 19(1), pages 35-52.
    • Handle: RePEc:taf:pocoec:v:19:y:2007:i:1:p:35-52
    DOI: 10.1080/14631370601163137
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    References listed on IDEAS

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    1. Foley, M.C., 1997. "Labor Market Dynamics in Russia," Papers 780, Yale - Economic Growth Center.
    2. Hockmann, Heinrich & Wandel, Jurgen & Nedoborovskyy, Andriy, 2005. "Agroholdings in Russia: Breaking the Vicious Circle?," 94th Seminar, April 9-10, 2005, Ashford, UK 24416, European Association of Agricultural Economists.
    3. Akhmed Akhmedov & Evgenia Bessonova & Ivan Cherkashin & Irina Denisova & Elena Grishina & Denis Nekipelov, 2003. "WTO Accession and the Labor Market: Estimations for Russia," Working Papers w0040, Center for Economic and Financial Research (CEFIR).
    4. David Epstein & Peter Tillack, 1999. "How Russian Agricultural Enterprises Are Surviving: The Financial Status of Large Agricultural Enterprises in the St. Petersburg Region," Eastern European Economics, Taylor & Francis Journals, vol. 37(5), pages 52-92, October.
    5. Svetlov, Nikolai & Hockmann, Heinrich, 2005. "Technical and economic efficiency of Russian corporate farms: the case of the Moscow region [Determinatnten der technischen und ökonomischen Effizienz von landwirtschaftlichen Betrieben in Russland: Der Oblast Moskau]," IAMO Discussion Papers 84, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    6. Csaba Csaki & John Nash & Vera Matusevich & Holger Kray, 2002. "Food and Agricultural Policy in Russia : Progress to Date and the Road Forward," World Bank Publications - Books, The World Bank Group, number 14097, April.
    7. Mark C. Foley, 1997. "Labor Market Dynamics in Russia," Working Papers 780, Economic Growth Center, Yale University.
    8. Koester, Ulrich, 2003. "A Revival of Large Farms in Eastern Europe- How Important are Institutions?," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa: Plenary Sessions 245926, International Association of Agricultural Economists.
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    1. Tleubayev, Alisher & Bobojonov, Ihtiyor & Götz, Linde & Hockmann, Heinrich & Glauben, Thomas, 2017. "Determinants of productivity and efficiency of wheat production in Kazakhstan: A stochastic frontier approach [Determinanten von Produktivität und Effizienz der Weizenproduktion in Kasachstan: Ein Stochastic-Frontier-Ansatz]," IAMO Discussion Papers 160, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).

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