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Sources of Agricultural Productivity Growth in Central Asia

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  • Lerman, Zvi
  • Sedik, David J.

Abstract

The paper examines agricultural production and productivity growth in two Central Asian countries – Tajikistan and Uzbekistan. Both countries are characterized by a significant shift of resources from the traditional Soviet model of collective agriculture to more market-compliant individual and family farming. In both countries, the beginning of the policy-driven switch to family farming around 1997 coincided with the beginning of recovery in agriculture, namely resumption of agricultural growth after a phase of transition decline since 1991. In addition to growth in total agricultural production, we also observe significant increases in productivity of both land and labor since 1997. These observations suggest that productivity growth may be attributable to the changes in farming structure in Central Asia. To check this conjecture we assess the sources of growth by applying the standard Solow growth accounting methodology. Using time series of country statistics for farms of different organizational forms, we decompose the growth in output into growth in the resource base (extensive growth) and growth in productivity (intensive growth). Solow growth accounting clearly shows that, first, much of the growth at the country level is attributable to increases in productivity rather than increases in resources and, second, the increases in productivity in family farms (especially household plots) outstrip the increases in productivity in former collective and state farms. These findings confirm that the recovery of agricultural production in Central Asia has been driven largely by productivity increases, and it is the individual farms that are the main source of agricultural productivity increases.

Suggested Citation

  • Lerman, Zvi & Sedik, David J., 2009. "Sources of Agricultural Productivity Growth in Central Asia," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49312, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea09:49312
    DOI: 10.22004/ag.econ.49312
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    References listed on IDEAS

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    1. Lerman, Zvi & Sedik, David & Pugachov, Nikolai & Goncharuk, Aleksandr, 2007. "Rethinking agricultural reform in Ukraine," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 38, number 92325.
    2. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-386, October.
    3. Zvi Lerman & Pepijn Schreinemachers, 2005. "Individual Farming as a Labour Sink: Evidence from Poland and Russia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 47(4), pages 675-695, December.
    4. Douglas W. Allen & Dean Lueck, 2004. "The Nature of the Farm: Contracts, Risk, and Organization in Agriculture," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511851, April.
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    Cited by:

    1. Upali Wickramasinghe, 2016. "Fostering productivity in the rural and agricultural sector for inclusive growth and sustainable development in Asia and the Pacific Abstract:," MPDD Working Paper Series WP/16/07, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    2. Sharofiddinov Husniddin & Moinul Islam & Koji Kotani, 2022. "Does the reorganization of large agricultural farms decrease irrigation water availability? A case study of Tajikistan," Working Papers SDES-2022-3, Kochi University of Technology, School of Economics and Management, revised Feb 2022.
    3. Sharofiddinov, Husniddin & Islam, Moinul & Kotani, Koji, 2024. "How does the number of water users in a land reform matter for water availability in agriculture?," Agricultural Water Management, Elsevier, vol. 293(C).
    4. Mandler, Andreas, 2010. "The influence of local governance on agricultural advisory services in Tajikistan," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52707, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).

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    Keywords

    Agricultural and Food Policy; Institutional and Behavioral Economics; Land Economics/Use; Productivity Analysis;
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