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

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  • 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
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    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, April.
    2. 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, April.
    3. 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, June.
    4. Anders Aslund & Kuchins, Andrew, 2009. "Russia Balance Sheet, The," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4242, April.
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    1. 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.
    2. repec:zbw:iamost:254051 is not listed on IDEAS
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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).
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. 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.

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