IDEAS home Printed from https://ideas.repec.org/a/taf/pocoec/v25y2013i1p59-81.html
   My bibliography  Save this article

Why are agroholdings so pervasive in Russia's Belgorod oblast '? Evidence from case studies and farm-level data

Author

Listed:
  • David Epshtein
  • Konstantin Hahlbrock
  • Jürgen Wandel

Abstract

This article analyses the reasons for the prevalence of agroholdings in Russia's Belgorod oblast ', focusing on the forces driving their emergence and persistence. It draws on both case study evidence and a unique farm-level dataset for 2001--07. It argues that, despite notable evidence for government support, political economy factors alone cannot explain the emergence of agroholdings in this region. Instead a complex mix of political and pure economic factors favoured agroholding creation. Likewise, it is shown that the persistence of agroholdings in Belgorod cannot easily be reduced to rent seeking. Rather much evidence is found that it is caused by good economic performance of agroholding farms, in particular by improvements in total factor productivity resulting from large investments in modern technology. However, since these investments were mostly credit financed, agroholding farms are exposed to a higher risk of default than independent farms.

Suggested Citation

  • David Epshtein & Konstantin Hahlbrock & Jürgen Wandel, 2013. "Why are agroholdings so pervasive in Russia's Belgorod oblast '? Evidence from case studies and farm-level data," Post-Communist Economies, Taylor & Francis Journals, vol. 25(1), pages 59-81, March.
    • Handle: RePEc:taf:pocoec:v:25:y:2013:i:1:p:59-81
    DOI: 10.1080/14631377.2013.756673
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14631377.2013.756673
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/14631377.2013.756673?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anders Aslund, 2007. "Russia's Capitalist Revolution: Why Market Reform Succeeded and Democracy Failed," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4099, January.
    2. Anders Aslund & Kuchins, Andrew, 2009. "Russia Balance Sheet, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4242, January.
    3. Anders Aslund & Sergie Guriev & Andrew Kuchins (ed.), 2010. "Russia after the Global Economic Crisis," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4976, January.
    4. Morck, Randall K. (ed.), 2007. "A History of Corporate Governance around the World," National Bureau of Economic Research Books, University of Chicago Press, number 9780226536811.
    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. Zhanna Degaltseva, 2015. "Descriptors of Modular Formation of Accounting and Analytical Cluster in Innovation Development of Agricultural Holdings," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 3(4), pages 56-64.
    2. repec:zbw:iamost:254051 is not listed on IDEAS
    3. Kvartiuk, Vasyl & Herzfeld, Thomas, 2023. "Why do farmers seek office? Regulatory capture in Russian agricultural subsidization," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 61(2), pages 111-130.
    4. 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.
    5. 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.
    6. Gagalyuk, Taras, 2017. "Strategic role of corporate transparency: the case of Ukrainian agroholdings," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(2), pages 257-278.
    7. Gagalyuk, Taras & Meyers, William H. & Balmann, Alfons, 2021. "Editorial. Special Issue: Growth of agroholdings and mega-farms in transition and emerging market economies: Institutional and organizational aspects," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(4), pages 581-592.
    8. Gagalyuk, Taras & Meyers, William H. & Balmann, Alfons, 2021. "Editorial," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), May.
    9. Gagalyuk, T., 2018. "A resilience-based rationale for farm growth: the case of Ukrainian agroholdings," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277115, International Association of Agricultural Economists.
    10. Matyukha, Andriy, 2017. "Business groups in agriculture. Impact of ownership structures on performance: The case of Russia's agroholdings," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 85, number 85.
    11. Ostapchuk, Igor & Gagalyuk, Taras & Epshtein, David & Dibirov, Abusupyan, 2021. "What drives the acquisition behavior of agroholdings? Performance analysis of agricultural acquisition targets in Northwest Russia and Ukraine," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(4), February.
    12. Matyukha, Andriy, 2017. "Business groups in agriculture impact of ownership structures on performance: The case of Russia's agroholdings," Studies on the Agricultural and Food Sector in Transition Economies 254051, Institute of Agricultural Development in Transition Economies (IAMO).
    13. Taras Gagalyuk, 2017. "Project Review: International Competence Center on Large Scale Agriculture at the Leibniz Institute of Agricultural Development in Transition Economies," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 6(2), pages 147-150, May.
    14. Gagalyuk, Taras, 2016. "Strategic role of corporate transparency: the case of Ukrainian agroholdings," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(2), November.
    15. Ostapchuk, Igor & Gagalyuk, Taras & Epshtein, David & Dibirov, Abusupyan, 2021. "What drives the acquisition behavior of agroholdings? Performance analysis of agricultural acquisition targets in Northwest Russia and Ukraine," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(4), pages 593-613.
    16. 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," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(4), pages 697-716.
    17. Brian, Kuns & Visser, Oane, 2016. "Towards an agroholding typology: differentiating large farm companies in Russia and Ukraine," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236326, Agricultural Economics Society.

    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. Jürgen Wandel, 2011. "Business groups and competition in post-Soviet transition economies: The case of Russian “agroholdings”," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(4), pages 403-450, December.
    2. Wandel, Jürgen, 2011. "Integrierte Strukturen im Agrar- und Ernährungssektor Russlands: Entstehungsgründe, Funktionsweise, Entwicklungsperspektiven und volkswirtschaftliche Auswirkungen. Band I und II," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 63, number 63.
    3. Laura E. Grube, 2015. "The role of culture in the persistence of traditional leadership: evidence from KwaZulu Natal, South Africa," Chapters, in: Laura E. Grube & Virgil Henry Storr (ed.), Culture and Economic Action, chapter 17, pages 375-397, Edward Elgar Publishing.
    4. Chikayoshi Nomura, 2014. "The origin of the controlling power of managing agents over modern business enterprises in colonial India," The Indian Economic & Social History Review, , vol. 51(1), pages 95-132, January.
    5. Vladimir Sokolov & Laura Solanko, 2017. "Political Influence, Firm Performance and Survival," HSE Working papers WP BRP 60/FE/2017, National Research University Higher School of Economics.
    6. Simo Leppänen & Laura Solanko & Riitta Kosonen, 2017. "The Impact of Climate Change on Regional Government Expenditures: Evidence from Russia," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(1), pages 67-92, May.
    7. Schmid, Thomas & Ampenberger, Markus & Kaserer, Christoph & Achleitner, Ann-Kristin, 2010. "Controlling shareholders and payout policy: do founding families have a special 'taste for dividends'?," CEFS Working Paper Series 2010-01, Technische Universität München (TUM), Center for Entrepreneurial and Financial Studies (CEFS).
    8. Irina Denisova & Markus Eller & Ekaterina Zhuravskaya, 2010. "What do Russians think about transition?1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(2), pages 249-280, April.
    9. Morck, Randall & Nakamura, Masao, 2018. "Japan's ultimately unaccursed natural resources-financed industrialization," Journal of the Japanese and International Economies, Elsevier, vol. 47(C), pages 32-54.
    10. Jin, Olivia & Pyle, William, 2023. "Labor market hardships and preferences for public sector employment and employers: Evidence from Russia," Journal of Comparative Economics, Elsevier, vol. 51(2), pages 577-591.
    11. Do, Quoc-Anh & Galbiati, Roberto & Marx, Benjamin & Ortiz Serrano, Miguel A., 2024. "J'Accuse! Antisemitism and financial markets in the time of the Dreyfus Affair," Journal of Financial Economics, Elsevier, vol. 154(C).
    12. Mäkinen, Mikko, 2021. "Does a financial crisis change a bank's exposure to risk? A difference-in-differences approach," BOFIT Discussion Papers 8/2021, Bank of Finland, Institute for Economies in Transition.
    13. Leppänen, Simo & Solanko, Laura & Kosonen, Riitta, 2015. "Could climate change affect government expenditures? Early evidence from the Russian regions," BOFIT Discussion Papers 27/2015, Bank of Finland, Institute for Economies in Transition.
    14. Kuo-Pin Yang & Gavin M. Schwarz, 2016. "A Multilevel Analysis of the Performance Implications of Excess Control in Business Groups," Organization Science, INFORMS, vol. 27(5), pages 1219-1236, October.
    15. Bijoy Chandra Das & Fakhrul Hasan & Soma Rani Sutradhar & Sujana Shafique, 2023. "Ukraine–Russia Conflict and Stock Markets Reactions in Europe," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(3), pages 395-407, September.
    16. Chavarín Rodríguez, Rubén, 2011. "Los grupos económicos en México a partir de una tipología de arquitectura y gobierno corporativos. Una revisión de sus explicaciones teóricas," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(309), pages 193-234, enero-mar.
    17. Jörn Obermann, 2020. "Let’s talk about money! Assessing the link between firm performance and voluntary Say-on-Pay votes," Journal of Business Economics, Springer, vol. 90(1), pages 109-135, February.
    18. Alexei Karas & William Pyle & Koen Schoors, 2015. "A "de Soto Effect" in Industry? Evidence from the Russian Federation," Journal of Law and Economics, University of Chicago Press, vol. 58(2), pages 451-480.
    19. Ankudinov, Andrei & Ibragimov, Rustam & Lebedev, Oleg, 2017. "Sanctions and the Russian stock market," Research in International Business and Finance, Elsevier, vol. 40(C), pages 150-162.
    20. Ketenci, Natalya, 2015. "Capital mobility in Russia," Russian Journal of Economics, Elsevier, vol. 1(4), pages 386-403.

    More about this item

    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:taf:pocoec:v:25:y:2013:i:1:p:59-81. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CPCE20 .

    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.