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Determinants of productivity and efficiency of wheat production in Kazakhstan: A Stochastic Frontier Approach

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  • Tleubayev, Alisher
  • Bobojonov, Ihtiyor
  • Götz, Linde
  • Hockmann, Heinrich
  • Glauben, Thomas

Abstract

Agriculture plays an important role for Kazakhstan not only because of rural employment, but also because of the diversity it brings to its oil dependent economy. A considerable increase in grain exports was achieved during the recent years, however, there still is a large room for in-creasing productivity and efficiency to boost the agricultural potential of the country further. The government of Kazakhstan has introduced several policy packages in the past to boost productivity and efficiency, however, the impact of these reforms has not been yet analyzed quantitatively. Micro level data collected from 200 farms in northern Kazakhstan in 2015 is used in the analysis, in order to fill this research gap. A mixture of evidences is found in terms of policy effect on productivity and efficiency. The results of the analysis showed that direct subsidy access reduced the efficiency, while access to supply chain infrastructure had the opposite effect and increased the efficiency. Therefore, the study concludes that the government should divert its policy support from direct subsidy payments to the improvement of agricultural infrastructure. This will influence positively not only productivity and efficiency, but also Kazakhstan’s commitments towards international and regional trade agreements.

Suggested Citation

  • 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).
    • Handle: RePEc:ags:iamodp:253397
    DOI: 10.22004/ag.econ.253397
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    More about this item

    Keywords

    Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Productivity Analysis;
    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
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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