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

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  • Hahlbrock, Konstantin
  • Hockmann, Heinrich

Abstract

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
    DOI: 10.22004/ag.econ.114579
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    2. Jelínek, Ladislav & Medonos, Tomáš & Foltýn, Ivan & Humpál, Jaroslav & Boyinová, Sumudu, 2018. "Social and Economic Consequences of Direct Payments Capping and Redistribution on the Czech Large-scale Farms," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272052, European Association of Agricultural Economists.
    3. 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.

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