23 research outputs found

    The Choice of Technology in Russian Agriculture: An Application of the Induced Innovation Hypothesis

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    Even after more then ten years after the beginning of the transition process, Russian agriculture shows only limited sign of a recovery. Production has not reached the level of the pre-transition period and investment is still on a very low level. In this paper we use the "Theory of Induced Innovation" in order to access the development of production structures in Russia and to identify the major obstacles for restructuring. We argue that due to multiple market failure (capital, labour) and inappropriate institutional arrangements inherited from Soviet times hinder the development of Russian agriculture. Both reasons causes that agricultural enterprises have difficulties with regard to an adjustment of factor input and production corresponding to the real scarcities of production factors. Agricultural policies based on subsidizing factor use or minimum prices will be an inefficient approach to solve the problems. A promising approach instead would be encouraging market transactions and fostering the integration of agricultural enterprises in the regional and domestic factor and product markets.technical change, efficiency, Russia, agriculture, induced innovation theory, Agribusiness, Q11, Q16,

    Marktintegration und landwirtschaftliche Entwicklung: Lehren aus der Wirtschaftsgeschichte und Entwicklungs√∂konomie f√ľr den russischen Getreidemarkt im Transformationsproze√ü

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    Der √∂konomische und politische Desintegrationsproze√ü innerhalb der Russischen F√∂deration f√ľhrte zwischen 1990 und 1994 zu einer Halbierung des √ľberregionalen innerrussischen Getreidehandels und deutlichen R√ľckg√§ngen in der Erzeugung. Aus der europ√§ischen Wirtschaftsgeschichte und den Erfahrungen zahlreicher Entwicklungsl√§nder ergibt sich, da√ü zwischen der Entstehung von Binnenm√§rkten und anhaltendem agrarischem Wachstum ein enger Zusammenhang besteht. Viele europ√§ische Volkswirtschaften und Staaten der Dritten Welt hatten dabei im Proze√ü der Entfaltung hochintegrierter Agrarbinnenm√§rkte mit √§hnlichen Problemen zu k√§mpfen, wie sie gegenw√§rtig in der Russischen F√∂deration vorliegen. Eine Analyse abgeschlossener marktorientierter Transformationsprozesse kann Hinweise auf L√∂sungsstrategien geben und erleichtert das Verst√§ndnis hochkomplexer Integrationsprozesse. Hierbei wird deutlich, da√ü ordnungspolitische Reformen bzw. eine Deregulierung des Agrarhandels erst positive Auswirkungen auf die landwirtschaftliche Produktion aus√ľben k√∂nnen, wenn ein massiver Ausbau der Infrastruktur erfolgt. Solche Reformen und die landesweite Modernisierung der Infrastruktur lassen sich allerdings nur durchf√ľhren, wenn es der Zentralgewalt gelingt, eine marktkonforme gesamtrussische Wirtschafts- und Agrarpolitik gegen partikularistische und marktfeindliche Tendenzen in vielen Oblasten und Republiken durchzusetzen. Da die Entstehung gro√ür√§umig operierender privater Vermarktungsinstitutionen von wirtschaftlich potenten Ballungsr√§umen ausgeht, stellt die zunehmende Versorgung dieser wichtigen Nachfragem√§rkte √ľber Importe keinen konstruktiven Beitrag f√ľr die Entwicklung innerrussischer Vermarktungsstrukturen dar. Gleichzeitig wird ber deutlich, da√ü das Haupthindernis f√ľr den Aufbau eines funktionierenden Agrarbinnenmarktes in der Reformunwilligkeit des gesamten russischen Agrarsektors und nicht in ausl√§ndischen Einfl√ľssen begr√ľndet liegt. -- E N G L I S H V E R S I O N: From 1990 to 1994 the economic and political process of disintegration within the Russian Federation halved the domestic trade of grain between the various regions and caused significant reductions in the production. From European economic history and the experience of several developing countries follows that there is a strong correlation between the formation of domestic markets and sustainable growth in agricultural output. During the process of developing highly integrated agricultural domestic markets many European economies and Third World countries had to struggle with problems, similar to those of the Russian Federation. An investigation of completed market-oriented transition processes can help to find strategies to remedy the existing difficulties and ease understanding the highly complex integration processes. It becomes evident that economic reforms (Ordnungspolitik) and a deregulation of the agricultural trade can only generate positive effects on agricultural production if the infrastructure is greatly improved. Such reforms and an overall modernization of the infrastructure can however only be implemented if the central power can establish a consistent market conform economic and agricultural policy all over Russia despite particularistic and market hostile tendencies in many oblasts and republics. Since the development of private marketing institutions covering great geographical areas is based on economically potent agglomerations, the growing supply of these important markets with imports is no constructive contribution to the development of domestic market structures in Russia. At the same time it becomes obvious that the main obstacle to the formation of an efficient domestic market is caused by the unwillingness to implement reforms in all parts of the Russian agricultural sector and not by foreign influences.

    Agricultural Productivity Across Prussia During the Industrial Revolution: A Th√ľnen Perspective

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    This publication is with permission of the rights owner freely accessible due to an Alliance licence and a national licence (funded by the DFG, German Research Foundation) respectively.This article explores the pattern of land rents and agricultural productivity across nineteenth-century Prussia to gain new insights on the causes of the ‚ÄúLittle Divergence‚ÄĚ between European regions. We argue that agriculture reacted to urban and industrial development rather than shaping it. In the spirit of Johann von Th√ľnen and Ernst Engel, we develop a theoretical model to test how access to urban demand affected agricultural development. We show that the effect of urban demand is causal and that it is in line with recent findings on a limited degree of interregional market integration in nineteenth-century Prussia.Peer Reviewe

    MARKTINTEGRATION UND LANDWIRTSCHAFTLICHE ENTWICKLUNG: LEHREN AUS DER WIRTSCHAFTSGESCHICHTE UND ENTWICKLUNGS√ĖKONOMIE F√úR DEN RUSSISCHEN GETREIDEMARKT IM TRANSFORMATIONSPROZESS

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    From 1990 to 1994 the economic and political process of disintegration within the Russian Federation halved the domestic trade of grain between the various regions and caused significant reductions in the production. From European economic history and the experience of several developing countries follows that there is a strong correlation between the formation of domestic markets and sustainable growth in agricultural output. During the process of developing highly integrated agricultural domestic markets many European economies and Third World countries had to struggle with problems, similar to those of the Russian Federation. An investigation of completed market-oriented transition processes can help to find strategies to remedy the existing difficulties and ease understanding the highly complex integration processes. It becomes evident that economic reforms (Ordnungspolitik) and a deregulation of the agricultural trade can only generate positive effects on agricultural production if the infrastructure is greatly improved. Such reforms and an overall modernization of the infrastructure can however only be implemented if the central power can establish a consistent market conform economic and agricultural policy all over Russia despite particularistic and market hostile tendencies in many oblasts and republics. Since the development of private marketing institutions covering great geographical areas is based on economically potent agglomerations, the growing supply of these important markets with imports is no constructive contribution to the development of domestic market structures in Russia. At the same time it becomes obvious that the main obstacle to the formation of an efficient domestic market is caused by the unwillingness to implement reforms in all parts of the Russian agricultural sector and not by foreign influences

    The Choice of Technology in Russian Agriculture: An Application of the Induced Innovation Hypothesis

    No full text
    Even after more then ten years after the beginning of the transition process, Russian agriculture shows only limited sign of a recovery. Production has not reached the level of the pre-transition period and investment is still on a very low level. In this paper we use the "Theory of Induced Innovation" in order to access the development of production structures in Russia and to identify the major obstacles for restructuring. We argue that due to multiple market failure (capital, labour) and inappropriate institutional arrangements inherited from Soviet times hinder the development of Russian agriculture. Both reasons causes that agricultural enterprises have difficulties with regard to an adjustment of factor input and production corresponding to the real scarcities of production factors. Agricultural policies based on subsidizing factor use or minimum prices will be an inefficient approach to solve the problems. A promising approach instead would be encouraging market transactions and fostering the integration of agricultural enterprises in the regional and domestic factor and product markets
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