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Does Group Affiliation Increase Productivity And Efficiency In Russia’S Agriculture? Evidence From Agroholdings In The Belgorod Oblast


  • Hahlbrock, Konstantin
  • Hockmann, Heinrich


The impact of group affiliation to agroholdings on enterprise performance in terms of productivity and efficiency is controversially discussed in the literature. However, only few papers evaluate the effects of group membership on the productivity and the efficiency of agricultural enterprises in Russia. The underlying research question of this paper is therefore whether farms that belong to agroholdings perform better than independent farms. We calculate partial land and labor productivity, total factor productivity and technical efficiency scores for the two categories of independent farms and members of agroholdings. In this paper a production function approach is estimated in the framework of stochastic frontier analysis. The results are used to decompose total factor productivity into a scale effect, a technological change effect and a technical efficiency effect. The results show a different trend than observed in previous studies. The growth of agroholdings total factor productivity exceeds by far the development of the independent farms and that group affiliation has a positive impact on the performance of the farm.

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  • 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.
  • Handle: RePEc:ags:eaae11:114579

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    1. Kim Jong-Il & Lau Lawrence J., 1994. "The Sources of Economic Growth of the East Asian Newly Industrialized Countries," Journal of the Japanese and International Economies, Elsevier, vol. 8(3), pages 235-271, September.
    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. Raushan Bokusheva & Heinrich Hockmann & Subal C. Kumbhakar, 2012. "Dynamics of productivity and technical efficiency in Russian agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 39(4), pages 611-637, September.
    4. Hockmann, Heinrich & Bokusheva, Raushan & Bezlepkina, Irina V., 2007. "Agroholdings membership: does that make a difference in performance?," 102nd Seminar, May 17-18, 2007, Moscow, Russia 10023, European Association of Agricultural Economists.
    5. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-386, October.
    6. 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.
    7. Rylko, Dmitri & Jolly, Robert W., 2005. "Russia's New Agricultural Operators: Their Emergence, Growth and Impact," Staff General Research Papers Archive 12635, Iowa State University, Department of Economics.
    8. Liefert, William M., 2007. "Measuring the Success of Agricultural Transition: An Application to Russia," 104th Seminar, September 5-8, 2007, Budapest, Hungary 8528, European Association of Agricultural Economists.
    9. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
    10. Douglas W. Allen & Dean Lueck, 2004. "The Nature of the Farm: Contracts, Risk, and Organization in Agriculture," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511851, July.
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    Cited by:

    1. Kimhi, Ayai & Lerman, Zvi (ed.), 2015. "Agricultural transition in post-soviet Europe and Central Asia after 25 years: International workshop in honor of Professor Zvi Lerman," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 79, number 79.

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    Agroholding; Stochastic Frontier Analysis; Efficiency; Total Factor Productivity; Russia; Productivity Analysis;

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