On the diversity of the effects of the state support for agriculture
Journal
Voprosy Ekonomiki
Type
journal article
Date Issued
2019-04-04
Author(s)
Nikolai M. Svetlov
Abstract
<jats:p>In this paper, we assess the effects of agricultural state support of corporate farms on their revenues from agricultural production sales in 14 Russian regions that differ in technology, environment and institutional conditions. In addition to the direct effect of the state support, the indirect effects via labor and capital are revealed. For this purpose, we identify production functions and statistical models of production factors for each of these regions separately. We find out diverse effects of the state support on revenues among the regions. Positive effects prevail. Negative effects are mainly caused by labor reductions that follow subsidy inflows. Another cause of negative effects is the soft budget constraints phenomenon.</jats:p>