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Technical and economic efficiency of Russian corporate farms: the case of the Moscow region
[Determinatnten der technischen und ökonomischen Effizienz von landwirtschaftlichen Betrieben in Russland: Der Oblast Moskau]

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  • Svetlov, Nikolai
  • Hockmann, Heinrich

Abstract

The research focus of the paper is to distinguish allocative and technical inefficiencies on Moscow region corporate farms. DEA specifications with both monetary and technical objective functions are applied. Reduced costs and sensitivity analyses are used to identify fixed inputs constraining either allocative or technical efficiency. To decrease heterogeneity and allow for the accessibility to different technologies of a given farm, the farms are grouped with respect to the set of outputs they produce. Thus, as a result of an unstable market environment, it is shown that allocative inefficiency causes 65-100 % (depending on the group) of total inefficiency in 2002 and 60-96 % in 1999. As for technical inefficiency, in 1999 its major source was the lack of liquidity (30-48 %) and other resources; in 2002 it was the lack of fodder (up to 37 %), liquidity (up to 31 %) and sown area (48 % in one of the groups). The role of insufficient management in regional farming inefficiency is evaluated as being much lower than many earlier studies suggest.

Suggested Citation

  • Svetlov, Nikolai & Hockmann, Heinrich, 2005. "Technical and economic efficiency of Russian corporate farms: the case of the Moscow region [Determinatnten der technischen und ökonomischen Effizienz von landwirtschaftlichen Betrieben in Russland," IAMO Discussion Papers 84, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
  • Handle: RePEc:zbw:iamodp:14922
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    1. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
    2. Sedik, David & Trueblood, Michael & Arnade, Carlos, 1999. "Corporate Farm Performance in Russia, 1991-1995: An Efficiency Analysis," Journal of Comparative Economics, Elsevier, vol. 27(3), pages 514-533, September.
    3. Lerman, Zvi & Shagaida, Natalya, 2005. "Land Reform and Development of Agricultural Land Markets in Russia," 2005 Annual meeting, July 24-27, Providence, RI 19461, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Nikolai Svetlov, 2001. "Econometric application of linear programming: a model of Russian large-scale farm (the case of the Moscow Region)," Econometrics 0112002, University Library of Munich, Germany.
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    Cited by:

    1. Ramanovich, Mikhail, 2010. "Zur Bestimmung der Wettbewerbsfähigkeit des weißrussischen Milchsektors: Aussagefähigkeit von Wettbewerbsindikatoren und Entwicklung eines kohärenten Messungskonzepts," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 53, number 94739.
    2. Svetlov, Nikolai M., 2007. "Corporate farm size determinants in transitional economy: the case of the Moscow region," 102nd Seminar, May 17-18, 2007, Moscow, Russia 10017, European Association of Agricultural Economists.
    3. Heinrich Hockmann & Michael Kopsidis, 2007. "What Kind of Technological Change for Russian Agriculture? The Transition Crisis of 1991-2005 from the Induced Innovation Theory Perspective," Post-Communist Economies, Taylor & Francis Journals, vol. 19(1), pages 35-52.

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    More about this item

    Keywords

    Technical inefficiency; allocative inefficiency; Data Envelopment Analysis; Moscow region; transitional economy; Technische Ineffizienz; Allokative Ineffizienz; Data Envelopment Analysis; Region Moskau; Transformationsländer;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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