IDEAS home Printed from https://ideas.repec.org/p/zbw/iamodp/141.html
   My bibliography  Save this paper

Competition for land and labour among individual farms and agricultural enterprises: Evidence from Kazakhstan's grain region
[Der Wettbewerb zwischen Einzelbetrieben und Agrarunternehmen um Boden und Arbeit: Einsichten aus Kasachstans Getreideregion]

Author

Listed:
  • Petrick, Martin

Abstract

This article evaluates the recent evolution of farm structure in Kazakhstan's grain region against the reform objectives of the 1990s and the family farm theory that underpinned the latter. In the study region, super-large agroholdings, large-scale enterprises and smaller individual farms emerged side-by-side and now compete for resources in a homogenous production environment. Drawing on two survey rounds of farm-level data, we find that the agroholdings display the highest factor productivity and are the most competitive on land and labour markets among all farms. However, we also find constant technical returns to scale across farm types and a layer of smaller family farms that is highly competitive on land markets. It is thus too early to conclude that large corporate farms are economically superior to individual (family) farms. But the present analysis clearly calls into question that family farms are a per-se desirable or even the only viable way of organising agricultural production. A revision of the received family farm theory may thus be due.

Suggested Citation

  • Petrick, Martin, 2013. "Competition for land and labour among individual farms and agricultural enterprises: Evidence from Kazakhstan's grain region [Der Wettbewerb zwischen Einzelbetrieben und Agrarunternehmen um Boden u," IAMO Discussion Papers 141, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
  • Handle: RePEc:zbw:iamodp:141
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/83979/1/766259064.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Michael R. Carter & Keith D. Wiebe, 1990. "Access to Capital and Its Impact on Agrarian Structure and Productivity in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1146-1150.
    2. Lerman, Zvi, 1998. "Does Land Reform Matter? Some Experiences from the Former Soviet Union," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(3), pages 307-330.
    3. Carter, Michael R. & Zimmerman, Frederick J., 2000. "The dynamic cost and persistence of asset inequality in an agrarian economy," Journal of Development Economics, Elsevier, vol. 63(2), pages 265-302, December.
    4. Arne Hallam, 1991. "Economies of Size and Scale in Agriculture: An Interpretive Review of Empirical Measurement," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 13(1), pages 155-172.
    5. Schmitt, Günther, 1984. "Warum die Agrarpolitik ist, wie sie ist, und nicht, wie sie sein sollte," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 33(05).
    6. Petrick, Martin & Wandel, Jürgen & Karsten, Katharina, 2013. "Rediscovering the Virgin Lands: Agricultural Investment and Rural Livelihoods in a Eurasian Frontier Area," World Development, Elsevier, vol. 43(C), pages 164-179.
    7. repec:zbw:iamodp:158730 is not listed on IDEAS
    8. Petrick, Martin & Wandel, Jürgen & Karsten, Katharina, 2011. "Farm restructuring and agricultural recovery in Kazakhstan's grain region: An update," IAMO Discussion Papers 158730, Institute of Agricultural Development in Transition Economies (IAMO).
    9. Sarris, Alexander H & Doucha, Tomas & Mathijs, Erik, 1999. "Agricultural Restructuring in Central and Eastern Europe: Implications for Competitiveness and Rural Development," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 26(3), pages 305-329, August.
    10. Robert Evenson & Prabhu Pingali (ed.), 2010. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 4, number 1.
    11. Nora Dudwick & Karin Fock & David Sedik, 2007. "Land Reform and Farm Restructuring in Transition Countries : The Experience of Bulgaria, Moldova, Azerbaijan, and Kazakhstan," World Bank Publications - Books, The World Bank Group, number 6685, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Petrick, Martin & Oshakbaev, Dauren & Wandel, Jürgen, 2014. "Kazakhstan's wheat, beef and dairy sectors: An assessment of their development constraints and recent policy responses," IAMO Discussion Papers 163932, Institute of Agricultural Development in Transition Economies (IAMO).
    2. repec:zbw:iamodp:163932 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:zbw:iamodp:159071 is not listed on IDEAS
    2. Petrick, Martin & Götz, Linde, 2019. "Herd growth, farm organisation and subsidies in the dairy sector of Russia and Kazakhstan," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 70(3), pages 789-811.
    3. Petrick, Martin, 2021. "Post-Soviet agricultural restructuring: A success story after all?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 63(4), pages 623-647.
    4. Klaus Deininger & Denys Nizalov & Sudhir K Singh, 2013. "Are mega-farms the future of global agriculture? Exploring the farm size-productivity relationship for large commercial farms in Ukraine," Discussion Papers 49, Kyiv School of Economics.
    5. Istvan Feher & Andrew Fieldsend, 2019. "The potential for expanding wheat production and exports in Kazakhstan," JRC Research Reports JRC113009, Joint Research Centre.
    6. Anubhab Gupta & Heng Zhu & Miki Khanh Doan & Aleksandr Michuda & Binoy Majumder, 2021. "Economic Impacts of the COVID−19 Lockdown in a Remittance‐Dependent Region," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 466-485, March.
    7. repec:zbw:iamodp:163932 is not listed on IDEAS
    8. Gagalyuk, Taras & Chatalova, Lioudmila & Kalyuzhnyy, Oleksandr & Ostapchuk, Igor, 2021. "Broadening the scope of instrumental motivations for CSR disclosure: An illustration for agroholdings in transition economies," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(4), pages 717-737.
    9. Ostapchuk, Igor & Gagalyuk, Taras & Curtiss, Jarmila, 2021. "Post-acquisition integration and growth of farms: the case of Ukrainian agroholdings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), April.
    10. Petrick, Martin & Wandel, Jürgen & Karsten, Katharina, 2013. "Rediscovering the Virgin Lands: Agricultural Investment and Rural Livelihoods in a Eurasian Frontier Area," World Development, Elsevier, vol. 43(C), pages 164-179.
    11. Lerman, Zvi, 2001. "Agriculture in transition economies: from common heritage to divergence," Agricultural Economics, Blackwell, vol. 26(2), pages 95-114, November.
    12. Petrick, Martin & Oshakbaev, Dauren & Wandel, Jürgen, 2014. "Kazakhstan's wheat, beef and dairy sectors: An assessment of their development constraints and recent policy responses," IAMO Discussion Papers 163932, Institute of Agricultural Development in Transition Economies (IAMO).
    13. Petrick, Martin, 2000. "Land Reform In Moldova: How Viable Are Emerging Peasant Farms? An Assessment Referring To A Recent World Bank Study," IAMO Discussion Papers 14882, Institute of Agricultural Development in Transition Economies (IAMO).
    14. Hajdu, Anna & Gagalyuk, Taras & Bukin, Eduard & Petrick, Martin, 2021. "Determinants of corporate social responsibility among farms in Russia and Kazakhstan: a multilevel approach using survey data," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), May.
    15. Dorward, Andrew, 2012. "Conceptualising the Effects of Seasonal Financial Market Failures and Credit Rationing in Applied Rural Household Models," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 51(2), pages 1-21, May.
    16. Rizov, Marian, 2004. "Shift To Individual Farming And The Productivity Growth Of Transition Agriculture," 2004 Annual meeting, August 1-4, Denver, CO 20116, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Kvartiuk, Vasyl & Herzfeld, Thomas, 2019. "Welfare effects of land market liberalization scenarios in Ukraine: Evidence-based economic perspective," IAMO Discussion Papers 287762, Institute of Agricultural Development in Transition Economies (IAMO).
    18. Deininger, Klaus & Nizalov, Denys & Singh, Sudhir K, 2013. "Are mega-farms the future of global agriculture ? exploring the farm size-productivity relationship," Policy Research Working Paper Series 6544, The World Bank.
    19. Petrick, Martin & Pomfret, Richard, 2016. "Agricultural policies in Kazakhstan [Agrarpolitik in Kasachstan]," IAMO Discussion Papers 155, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    20. Hofman, Irna & Visser, Oane, 2014. "Geographies of transition: The political and geographical factors of agrarian change in Tajikistan," IAMO Discussion Papers 199945, Institute of Agricultural Development in Transition Economies (IAMO).
    21. repec:zbw:iamodp:287762 is not listed on IDEAS
    22. Gagalyuk, Taras & Chatalova, Lioudmila & Kalyuzhnyy Oleksandr, 2021. "Broadening the scope of instrumental motivations for CSR disclosure: an illustration for agroholdings in transition economies," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), May.
    23. Kvartiuk, Vasyl & Petrick, Martin, 2021. "Liberal land reform in Kazakhstan? The effect on land rental and credit markets," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 138.

    More about this item

    Keywords

    family farms; agroholdings; land market; labour market; Kazakhstan; Familienbetriebe; Bodenmarkt; Arbeitsmarkt; Kasachstan;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:iamodp:141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iamoode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.