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Seductions of an Underdevelopment Trap; Systemic Impediments to Agricultural Reform in Russia

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  • Dmitry Gershenson
  • Maria Amelina

Abstract

Despite ambitious agricultural reforms initiated by the federal government, inefficient and unprofitable producers predominate in post-Soviet Russia. However, in some regions a more robust restructuring has taken place. Observing two Russian regions-one with substantially restructured agricultural production, and one in which Soviet-style coordination predominates-we develop a model of the interactions between political and economic incentives that lead to these divergent outcomes. The model identifies region- and sector-specific characteristics that encourage some regional governments to maintain Soviet-style redistribution structures and make producers forsake more efficient outcomes as more costly, while encouraging other regions to pursue reform.

Suggested Citation

  • Dmitry Gershenson & Maria Amelina, 2002. "Seductions of an Underdevelopment Trap; Systemic Impediments to Agricultural Reform in Russia," IMF Working Papers 02/126, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:02/126
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    References listed on IDEAS

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    1. Galbi, Douglas, 1995. "The significance of credits and subsidies in Russian agricultural reform," Policy Research Working Paper Series 1441, The World Bank.
    2. Olivier Blanchard & Michael Kremer, 1997. "Disorganization," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1091-1126.
    3. Raghuram G. Rajan & Luigi Zingales, 1998. "Power in a Theory of the Firm," The Quarterly Journal of Economics, Oxford University Press, vol. 113(2), pages 387-432.
    4. David Epstein & Peter Tillack, 1999. "How Russian Agricultural Enterprises Are Surviving: The Financial Status of Large Agricultural Enterprises in the St. Petersburg Region," Eastern European Economics, Taylor & Francis Journals, vol. 37(5), pages 52-92, October.
    5. Andrei Shleifer & Robert W. Vishny, 1994. "Politicians and Firms," The Quarterly Journal of Economics, Oxford University Press, vol. 109(4), pages 995-1025.
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    Keywords

    Agriculture; Russian Federation; collective farms; transition; subsidy; farms; farm; collective farm; Positive Analysis of Policy-Making and Implementation;

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