Corporate farm size determinants in transitional economy: the case of the Moscow region
A set of dynamic DEA models is applied to investigate size determinants on the Moscow region corporate farms during 1996-2004. The institutional theoretical framework is found to be relevant to explaining corporate farm sizes and their changes in the Moscow region, unlike the neo-classical framework. Farms' opportunities to utilize returns to scale for improving performance are minor. Rank correlation between performance and size indicators is positive. This cannot be comprehensively explained by wider opportunities to grow that are available to best-practice farms. The theoretical expectation of pursuing lower transaction costs as a motivation for a large-scale farm business complies with the estimations.
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