{"title":"Productivity, Subsidies, and Agricultural Specialization: Evidence from the Russian Far East","authors":"O. Vasilyeva","doi":"10.14530/se.2022.3.093-114","DOIUrl":null,"url":null,"abstract":"Are the effects of subsidies on farm productivity heterogeneous? Does the direction and magnitude of subsidies impact depend on farm specialization? To address this question, I use farm-level data from Amur region in the Russian Far East for 2010–2014. The data set includes farms inputs and output as well as state subsidies and degree of farm specialization. The latter is defined as the share of crop production in total farm revenue. The sample of farms is not random but includes almost the entire set of corporate farms in the Amur Region. Using the data, I estimate the production function that allows me to study the relationships between total factor productivity (TFP), farms specialization and state subsidies. To test whether farm specialization moderates the impact of subsidies on TFP, an interaction term between specialization and subsidies was included in the model. So, I study how the marginal effects of subsidies change conditional on degree of specialization. My findings support the heterogeneous effect of subsidies on TFP depending on the degree of farm specialization. High degree of specialization on livestock production is associated with negative effects of subsidies on TFP, while I don’t fine a statistically significant connection between subsides and TFP for farms specializing on crop production. The research contributes to the discussion about the effects of state supports and subsidies on agricultural development and productivity in Russia and particularly in the Russian Far East","PeriodicalId":54733,"journal":{"name":"Networks & Spatial Economics","volume":null,"pages":null},"PeriodicalIF":1.6000,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Networks & Spatial Economics","FirstCategoryId":"5","ListUrlMain":"https://doi.org/10.14530/se.2022.3.093-114","RegionNum":3,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"OPERATIONS RESEARCH & MANAGEMENT SCIENCE","Score":null,"Total":0}
引用次数: 0
Abstract
Are the effects of subsidies on farm productivity heterogeneous? Does the direction and magnitude of subsidies impact depend on farm specialization? To address this question, I use farm-level data from Amur region in the Russian Far East for 2010–2014. The data set includes farms inputs and output as well as state subsidies and degree of farm specialization. The latter is defined as the share of crop production in total farm revenue. The sample of farms is not random but includes almost the entire set of corporate farms in the Amur Region. Using the data, I estimate the production function that allows me to study the relationships between total factor productivity (TFP), farms specialization and state subsidies. To test whether farm specialization moderates the impact of subsidies on TFP, an interaction term between specialization and subsidies was included in the model. So, I study how the marginal effects of subsidies change conditional on degree of specialization. My findings support the heterogeneous effect of subsidies on TFP depending on the degree of farm specialization. High degree of specialization on livestock production is associated with negative effects of subsidies on TFP, while I don’t fine a statistically significant connection between subsides and TFP for farms specializing on crop production. The research contributes to the discussion about the effects of state supports and subsidies on agricultural development and productivity in Russia and particularly in the Russian Far East
期刊介绍:
Networks and Spatial Economics (NETS) is devoted to the mathematical and numerical study of economic activities facilitated by human infrastructure, broadly defined to include technologies pertinent to information, telecommunications, the Internet, transportation, energy storage and transmission, and water resources. Because the spatial organization of infrastructure most generally takes the form of networks, the journal encourages submissions that employ a network perspective. However, non-network continuum models are also recognized as an important tradition that has provided great insight into spatial economic phenomena; consequently, the journal welcomes with equal enthusiasm submissions based on continuum models.
The journal welcomes the full spectrum of high quality work in networks and spatial economics including theoretical studies, case studies and algorithmic investigations, as well as manuscripts that combine these aspects. Although not devoted exclusively to theoretical studies, the journal is "theory-friendly". That is, well thought out theoretical analyses of important network and spatial economic problems will be considered without bias even if they do not include case studies or numerical examples.