IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/264271.html
   My bibliography  Save this article

Agricultural policies and technical efficiency of wheat production in Kazakhstan and Russia: Evidence from a stochastic frontier approach

Author

Listed:
  • Tleubayev, Alisher
  • Bobojonov, Ihtiyor
  • Götz, Linde

Abstract

We utilize a unique primary data set of farms in Russia and Kazakhstan to investigate the link between policy reforms and technical efficiency. These countries have heavily subsidized their domestic agricultural production over the last decade, with a total of around USD 76 billion USD and USD 11.5 billion USD in government funding directed towards the agricultural sectors in Russia and Kazakhstan, respectively. Results of a stochastic frontier analysis make evident that variable inputs, such as fertilizer, have a relatively large influence on wheat production compared to land. Nearly every fifth farm has a technical efficiency level lower than 60%, suggesting significant unrealized production potential. While our analysis shows a negative relation between subsidies and efficiency, other factors, such as farmer’s education, cooperative and agroholding membership, and participation in insurance programs, are positively related to farm efficiency. The results imply that the governments and policymakers could mobilize the unutilized wheat production potential by improving the farmer education system, fostering cooperation among farms, and developing functioning farm insurance schemes.

Suggested Citation

  • Tleubayev, Alisher & Bobojonov, Ihtiyor & Götz, Linde, 2022. "Agricultural policies and technical efficiency of wheat production in Kazakhstan and Russia: Evidence from a stochastic frontier approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 54(3), pages 407-421.
    • Handle: RePEc:zbw:espost:264271
    DOI: 10.1017/aae.2022.13
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/264271/1/Tleubayev_2022_agricultural_policies.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.1017/aae.2022.13?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Petrick, Martin & Götz, Linde, 2019. "Herd growth, farm organisation and subsidies in the dairy sector of Russia and Kazakhstan," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 70(3), pages 789-811.
    2. Sotnikov, Sergey, 1998. "Evaluating the Effects of Price and Trade Liberalisation on the Technical Efficiency of Agricultural Production in a Transition Economy: The Case of Russia," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(3), pages 412-431.
    3. Uhl, Kerstin Marit & Perekhozhuk, Oleksandr & Glauben, Thomas, 2019. "Russian market power in international wheat exports: Evidence from a residual demand elasticity analysis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 17(2), pages 1-13.
    4. David Epshtein, 2005. "Financial Performance and Efficiency of Corporate Farms in Northwest Russia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 47(1), pages 188-199, March.
    5. Petrick, Martin & Gramzow, Andreas & Oshakbaev, Dauren & Wandel, Jürgen, 2014. "A policy agenda for agricultural development in Kazakhstan," IAMO Policy Briefs 15, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    6. Ma, Wanglin & Renwick, Alan & Yuan, Peng & Ratna, Nazmun, 2018. "Agricultural cooperative membership and technical efficiency of apple farmers in China: An analysis accounting for selectivity bias," Food Policy, Elsevier, vol. 81(C), pages 122-132.
    7. repec:zbw:iamodp:234476 is not listed on IDEAS
    8. Dong, Ying & Mu, Yueying & Abler, David, 2019. "Do Farmer Professional Cooperatives Improve Technical Efficiency and Income? Evidence from Small Vegetable Farms in China," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(4), pages 591-605, November.
    9. Habtamu Alem & Gudbrand Lien & J. Brian Hardaker & Atle Guttormsen, 2019. "Regional differences in technical efficiency and technological gap of Norwegian dairy farms: a stochastic meta-frontier model," Applied Economics, Taylor & Francis Journals, vol. 51(4), pages 409-421, January.
    10. Svanidze, Miranda & Götz, Linde & Djuric, Ivan & Glauben, Thomas, 2019. "Food security and the functioning of wheat markets in Eurasia: a comparative price transmission analysis for the countries of Central Asia and the South Caucasus," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11(3), pages 733-752.
    11. 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.
    12. Bobojonov, Ihtiyor & Goetz, Linde & Glauben, Thomas, 2014. "How well does the crop insurance market function in Russia?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182856, European Association of Agricultural Economists.
    13. Kumbhakar,Subal C. & Wang,Hung-Jen & Horncastle,Alan P., 2015. "A Practitioner's Guide to Stochastic Frontier Analysis Using Stata," Cambridge Books, Cambridge University Press, number 9781107609464, September.
    14. Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-332.
    15. Abdulai, Awudu & Eberlin, Richard, 2001. "Technical efficiency during economic reform in Nicaragua: evidence from farm household survey data," Economic Systems, Elsevier, vol. 25(2), pages 113-125, June.
    16. Salvatore Di Falco & Jean-Paul Chavas, 2006. "Crop genetic diversity, farm productivity and the management of environmental risk in rainfed agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(3), pages 289-314, September.
    17. Vitale, Pilja Park & Vitale, Jeffrey & Epplin, Francis, 2019. "Factors Affecting Efficiency Measures Of Western Great Plains Wheat Dominant Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(1), pages 69-103, February.
    18. Petrick, Martin & Pomfret, Richard, 2016. "Agricultural policies in Kazakhstan," IAMO Discussion Papers 234476, Institute of Agricultural Development in Transition Economies (IAMO).
    19. Liefert, William M. & Liefert, Olga & Vocke, Gary & Allen, Edward W., 2010. "Former Soviet Union Region To Play Larger Role in Meeting World Wheat Needs," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-8.
    20. repec:zbw:iamodp:285032 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Changjun Zheng & Sinamenye Jean-Petit, 2023. "The Effects of the Interactions Between Agro-Production, Economic, and Financial Development on Bank Sustainability," SAGE Open, , vol. 13(2), pages 21582440231, June.
    2. Yungang Tang & Haojie Liao & Ye Wu & Gang Lei, 2024. "Unravelling the bidirectional impact of Chinese agricultural subsidy policy on agricultural efficiency and farmers' income through panel data analysis," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(4), pages 165-177.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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," IAMO Discussion Papers 253397, Institute of Agricultural Development in Transition Economies (IAMO).
    2. repec:zbw:iamodp:253397 is not listed on IDEAS
    3. Djuraeva, Mukhayyo & Bobojonov, Ihtiyor & Kuhn, Lena & Glauben, Thomas, 2023. "The impact of agricultural extension type and form on technical efficiency under transition: An empirical assessment of wheat production in Uzbekistan," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 203-221.
    4. Junying Lin & Songqing Jin & Hongdong Guo, 2023. "Do outsourcing services provided by agricultural cooperatives affect technical efficiency? Insights from tobacco farmers in China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 781-804, September.
    5. Abebayehu Girma Geffersa & Frank Wogbe Agbola & Amir Mahmood, 2022. "Modelling technical efficiency and technology gap in smallholder maize sector in Ethiopia: accounting for farm heterogeneity," Applied Economics, Taylor & Francis Journals, vol. 54(5), pages 506-521, January.
    6. Radha R. Ashrit, 2023. "Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: a stochastic Frontier production approach," SN Business & Economics, Springer, vol. 3(2), pages 1-32, February.
    7. Muratbek Baglan & Gershom Endelani Mwalupaso & Xue Zhou & Xianhui Geng, 2020. "Towards Cleaner Production: Certified Seed Adoption and Its Effect on Technical Efficiency," Sustainability, MDPI, vol. 12(4), pages 1-17, February.
    8. Li, Xinyi & Ito, Junichi, 2023. "Determinants of technical efficiency and farmers’ crop choice rationality: A case study of rural Gansu, China," Journal of Asian Economics, Elsevier, vol. 84(C).
    9. Subal C. Kumbhakar & Christopher F. Parmeter & Valentin Zelenyuk, 2022. "Stochastic Frontier Analysis: Foundations and Advances I," Springer Books, in: Subhash C. Ray & Robert G. Chambers & Subal C. Kumbhakar (ed.), Handbook of Production Economics, chapter 8, pages 331-370, Springer.
    10. MAIMOUNA DIAKITE & Jean-François BRUN, 2016. "Tax Potential and Tax Effort: An Empirical Estimation for Non-Resource Tax Revenue and VAT’s Revenue," EcoMod2016 9537, EcoMod.
    11. Thanh Ngo & Kan Wai Hong Tsui, 2022. "Estimating the confidence intervals for DEA efficiency scores of Asia-Pacific airlines," Operational Research, Springer, vol. 22(4), pages 3411-3434, September.
    12. Gao, Penghui & Secor, William & Escalante, Cesar L., 2022. "Banking Efficiency Analysis for U.S. agricultural and non-agricultural banks: Comparative Period Analysis between the Great Recession of the late 2000s and the Current Pandemic conditions," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322329, Agricultural and Applied Economics Association.
    13. Richard Adjei Dwumfour & Eric Fosu Oteng-Abayie & Emmanuel Kwasi Mensah, 2022. "Bank efficiency and the bank lending channel: new evidence," Empirical Economics, Springer, vol. 63(3), pages 1489-1542, September.
    14. Wanglin Ma & Kathryn Bicknell & Alan Renwick, 2019. "Feed use intensification and technical efficiency of dairy farms in New Zealand," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(1), pages 20-38, January.
    15. repec:ajn:agdeve:2018:p:1-15 is not listed on IDEAS
    16. Chen, Jiandong & Wu, Yinyin & Song, Malin & Zhu, Zunhong, 2017. "Stochastic frontier analysis of productive efficiency in China's Forestry Industry," Journal of Forest Economics, Elsevier, vol. 28(C), pages 87-95.
    17. Tommy Lundgren & Mattias Vesterberg, 2024. "Efficiency in electricity distribution in Sweden and the effects of small-scale generation, electric vehicles and dynamic tariffs," Journal of Productivity Analysis, Springer, vol. 62(2), pages 121-137, October.
    18. Alem, Habtamu, 2020. "Performance of the Norwegian dairy farms: A dynamic stochastic approach," Research in Economics, Elsevier, vol. 74(3), pages 263-271.
    19. Rezitis, Anthony & Mishra, Ashok & Kumar, Shalander, . "Indians Demanding More Plant-Based Protein but Farmers' Profits Drop: Empirical Evidence to Understand the Dilemma," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(1).
    20. Z. Sojková & Z. Kropková & V. Benda, 2008. "Slovak agricultural farms in different regions - comparison of efficiency," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 54(4), pages 158-165.
    21. Nguyen, Hoa-Thi-Minh & Do, Huong & Kompas, Tom, 2021. "Economic efficiency versus social equity: The productivity challenge for rice production in a ‘greying’ rural Vietnam," World Development, Elsevier, vol. 148(C).
    22. Orea, Luis, 2019. "The Econometric Measurement of Firms’ Efficiency," Efficiency Series Papers 2019/02, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).

    More about this item

    Keywords

    food security; KRU countries; stochastic frontier analysis; subsidies; technical efficiency;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:264271. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.