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Impact of regional diversity on production potential: an example of Russia


  • Belyaeva, Maria
  • Hockmann, Heinrich
  • Koch, Friedrich


Russia is often considered the most prominent country to become a leader on the world grain market. However, several issues slow down Russia’s agricultural progress, for example: a lack of infrastructure and investments, unequal regional development, and inefficient use of production technologies. This study therefore examines the grain production potential of Russian regions by employing a modified approach to stochastic frontier analysis that allows us to include not only production technologies, but also indicators of country’s heterogeneity and diversity among regions. Obtained results indicate that climate conditions in combination with the level of human and institutional development, and infrastructure have significant effect on the production structure of regions and therefore should not be neglected while assessing regional policies and production potential.

Suggested Citation

  • Belyaeva, Maria & Hockmann, Heinrich & Koch, Friedrich, 2014. "Impact of regional diversity on production potential: an example of Russia," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 168924, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaa142:168924
    DOI: 10.22004/ag.econ.168924

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    References listed on IDEAS

    1. Raushan Bokusheva & Heinrich Hockmann, 2006. "Production risk and technical inefficiency in Russian agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(1), pages 93-118, March.
    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. Bill Greene with Antonio Alvarez (Univ. of Oviedo) & Carlos Arias (Univ. of Leon), 2004. "Accounting For Unobservables In Production Models: Management And Inefficiency," Econometric Society 2004 Australasian Meetings 341, Econometric Society.
    4. Carlos Arnade & Munisamy Gopinath, 2000. "Financial constraints and output targets in Russian agricultural production," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(1), pages 71-84.
    5. Peter Voigt & Heinrich Hockmann, 2008. "Russia's transition process in the light of a rising economy: Economic trajectories in Russia's industry and agriculture," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 5(2), pages 251-267, December.
    6. Raushan Bokusheva & Heinrich Hockmann & Subal C. Kumbhakar, 2012. "Dynamics of productivity and technical efficiency in Russian agriculture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 39(4), pages 611-637, September.
    7. Stefan Osborne & Michael A. Trueblood, 2006. "An examination of economic efficiency of Russian crop production in the reform period," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 25-38, January.
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    Cited by:

    1. Lajos Baráth & Imre Fertő & Štefan Bojnec, 2020. "The Effect of Investment, LFA and Agri‐environmental Subsidies on the Components of Total Factor Productivity: The Case of Slovenian Farms," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 853-876, September.
    2. Lajos Barath & Heinrich Hockmann, 2016. "Technological differences, theoretically consistent frontiers and technical efficiency: a Random parameter application in the Hungarian crop producing farms," IEHAS Discussion Papers 1636, Institute of Economics, Centre for Economic and Regional Studies.
    3. Lajos Baráth & Imre Fertő & Heinrich Hockmann, 2020. "Technological Differences, Theoretical Consistency, and Technical Efficiency: The Case of Hungarian Crop-Producing Farms," Sustainability, MDPI, vol. 12(3), pages 1-18, February.
    4. Rada, Nicholas & Liefert, William & Liefert, Olga, 2017. "Productivity Growth and the Revival of Russian Agriculture," Economic Research Report 256716, United States Department of Agriculture, Economic Research Service.

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