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Impact of regional diversity on production potential: An example of Russia

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  • Belyaeva, Maria
  • Hockmann, Heinrich

Abstract

Russia is often considered the most prominent country to become a leader on the world grain market. However, several issues slow down Russia’s agricultural progress, for example: a lack of infrastructure and investments, unequal regional development and inefficient use of production technologies. This study therefore examines the grain production potential of Russian regions by employing a modified approach to stochastic frontier analysis that allows us to include not only production technologies, but also indicators of the country’s heterogeneity and diversity among regions. The results obtained indicate that climate conditions in combination with the level of human and institutional development, and infrastructure have significant effects on the production structure of regions and therefore should not be neglected while assessing regional policies and production potential.

Suggested Citation

  • Belyaeva, Maria & Hockmann, Heinrich, 2015. "Impact of regional diversity on production potential: An example of Russia," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 117(2), pages 72-79.
    • Handle: RePEc:zbw:espost:265138
    DOI: 10.7896/j.1516
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    References listed on IDEAS

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    1. Bill Greene with Antonio Alvarez (Univ. of Oviedo) & Carlos Arias (Univ. of Leon), 2004. "Accounting For Unobservables In Production Models: Management And Inefficiency," Econometric Society 2004 Australasian Meetings 341, Econometric Society.
    2. Carlos Arnade & Munisamy Gopinath, 2000. "Financial constraints and output targets in Russian agricultural production," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(1), pages 71-84.
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