Subsidies as a measure to increase factor productivity in agriculture of Russia
https://doi.org/10.38050/01300105202265
Abstract
The study attempts to explain the dependence of agricultural development indicators on subsidies and other factors in Russia in 2012–2020. Based on the author's methodology, the survey evaluates the economic efficiency of subsidies in Russia’s agriculture, develops and justifies the measures to improve the support system aimed at increasing total factor productivity (TFP). The object of the study is agricultural subsidy system. The subject of the research is the influence of subsidies on TFP in agriculture. The panel models with fixed effects do not reveal an impact of subsidies on TFP. The 1st lag of the logarithm of subsidies negatively affects the dynamics of labor productivity, and shows no relationship between current year subsidies and labor productivity. Labor productivity in agriculture in Russia grows in 2019– 2020 as a result of higher gross output and, to a lesser extent, of lower employment. Capital productivity increases mainly due to gross output growth. Support measures for general services (development of infrastructure, science, extension, phytosanitary and veterinary services) should be the most important components of increasing the efficiency of agricultural subsidies. These components in agricultural subsidies are of high priority for the environmental situation in rural areas and the state of human capital.
References
1. Aganbegyan, A. G. (2017). Agriculture as a Driving Force of the Russia Social and Economic Growth.ECO, 5(515), 5–22. https://doi.org/10.30680/ECO0131-7652-2017-5-5-22
2. Agro-Industrial Complex of Russia in 2020 (2021): Statistical collection. Availability of tractors (excluding tractors with rehandling, reclamation and other machines) at the end of the year. Moscow: FSBSO Rosinformagrotekh.
3. Aitzhanova, A., Brown, W., & Ezhov, V. et al. (2013). Kazakhstan 2050: Toward a Modern Society for All. Astana. 398 p.
4. Buzdalov, I., & Frumkin, B. (2014). The Current Situation in Russian Agriculture and New Requirements for Agricultural Policy. Society and Economics, 7-8, 100–124.
5. Vasilyeva, O. G., & Bilko, A. M. Do subsidies drive productivity? Farm-level evidence from the Russian Far East. Voprosy Ekonomiki, 2, 120–146. https://doi.org/10.32609/0042-8736-2022-2-120-146
6. World Bank (2016). Russian Federation — Systematic country diagnostic: pathways to inclusive growth / World Bank Group, Washington, DC, USA. Retrieved August 17, 2022, from https://documents1.worldbank.org/curated/en/563031497436564657/pdf/ff110765-SCD-P153080-PUBLIC-RUSSIAN-DecSCDpaperengforweb.pdf
7. Zinchenko, A. P. (2017). Studying the problems of economic reproduction in agriculture of Russia. Studies on Russian Economic Development, 2(2), 140–146. DOI: 10.1134/88S1075700717020137
8. Ivanov, N. I., Shevchenko, T. V., & Gorbunov, V. S. (2019). Statistical Analysis of Current Development of Agriculture in Russian Regions. RUDN Journal of Agronomy and Animal Industries, 14(4), 520–558. DOI: 10.22363/2312-797X-2019-14-4-520-558.
9. Kalinin, A. M., & Samokhvalov, V. A. (2020). Eff ectiveness of Financial Support to Agriculture: General Assessment and Inter-Budget Eff ect. Studies on Russian Economic Development, 31(5), 565–572. DOI: 10.1134/S1075700720050081.
10. Crop areas under crops (2022). UISIS. Retrieved August 21, 2022, from https://www.fedstat.ru/indicator/31328
11. Regions of Russia (2022). Socio-economic indicators. Federal State Statistics Service. Retrieved August, 20, 2022, from https://rosstat.gov.ru/folder/210/document/13204
12. Romashkin, R. A., Sedik, D., Avdeev, M. V., & Cherkasova, O. V. (2020). Prospects for Russian agri-food exports in the Chinese market. Edited by S. A. Shoba. Moscow: LLC Publishing house “Pero”.
13. Sayganov, A. S., & Lenski, A. V. (2015). Analysis of the effi ciency of plant products production at agricultural enterprises. Proceedings of the National Academy of Sciences of Belarus. Agrarian Series, 1, 22–36.
14. Svetlov, N. M., Yanbykh, R. G., & Loginova, D. A. (2019). On the diversity of the eff ects of the state support for agriculture. Voprosy ekonomiki, 4, 59–73.
15. Agriculture, Hunting and Forestry. Federal State Statistics Service (2022). Retrieved August 18, 2022, from https://rosstat.gov.ru/enterprise_economy
16. Regions of Russia. Social and Economic Indicators. Federal State Statistics Service. Retrieved August 23, 2022, from https://rosstat.gov.ru/folder/r210/document/13204
17. Shik, O. V. (2004). Efficiency of state agro-food policy in Russia at the regional level: thesis …Candidate of Economics. Institute for the Economy in Transition. Moscow.
18. Shik, O. V., Yanbykh, R. G., & Serova, E. V. (2020). Review of the Budget Support System for the Agricultural Sector in Russia. Public Administration Issues, 2, 145–167.
19. Energy capacity (hp) per 100 hectares of sown area (2022). UISIS. Retrieved August 22, 2022, from https://www.fedstat.ru/indicator/31632
20. OECD (2021). Agricultural Policy Monitoring and Evaluation 2021: Addressing the Challenges Facing Food Systems / OECD Publishing, Paris. https://doi.org/10.1787/2d810e01-en
21. Rada, N., Liefert, W., & Liefert, O. (2020). Evaluating Agricultural Productivity and Policy in Russia. Journal of Agricultural Economics, 71(1), 96–117. DOI: 10.1111/1477-9552.12338
22. Shik, O. V. (2020). Public expenditure for agricultural sector in Russia: Does it promote growth? Russian Journal of Economics, (1), 42–55. 10.32609/j.ruje.6.49756.66
23. Steensland, A. (2020). Global Agricultural Productivity Report: Productivity in a time of pandemics. T. Thompson (Ed.) / Virginia Tech College of Agriculture and Life Sciences. Retrieved August 21, 2022, from https://globalagriculturalproductivity.orgwp/content/uploads/2019/01/2020-GAP_Report_Exec-Summary-1.pdf
24. World Bank (2020). Russian Federation Agriculture Support Policies and Performance. Washington, DC. Retrieved August 19, 2022, from https://openknowledge.worldbank.org/handle/10986/35909
Supplementary files
Review
For citations:
Seitov S.K. Subsidies as a measure to increase factor productivity in agriculture of Russia. Moscow University Economics Bulletin. 2022;(6):100-122. (In Russ.) https://doi.org/10.38050/01300105202265
Views:
439
Email this article 