Umudike, Nigeria
JEL H57 Procurement
JEL L64 Other Machinery • Business Equipment • Armaments
JEL Q18 Agricultural Policy • Food Policy • Animal Welfare Policy
A time-series econometric analysis (1991-2024) of Russia's agricultural state support was conducted to evaluate the effectiveness of this support. Structural break testing within this analysis identified three distinct policy periods over the course of this study. The results of the analysis established that research and development (R&D) and the quality of governance have output elasticities that are significantly higher than those associated with direct subsidies, which were found to have declining returns. The findings also suggest that external shocks further decrease the effectiveness of these types of subsidies. The findings of this analysis challenge the prevailing narrative that supports the notion of quantity over composition in support to agriculture as it demonstrates that the composition of supports may be of greater importance to long-term agricultural growth than the quantity. The analysis provides policy recommendations that advocate for the reallocation of resources from universally provided subsidies to merit-based grants for both innovation and institutional reforms that will improve productivity and resilience within the agriculture sector in Russia.
agricultural support; time-series analysis; structural breaks; institutional quality; Russia; post-Soviet transition; macroeconomic policy
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