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Determinants of productivity and efficiency of wheat production in Kazakhstan: A Stochastic Frontier Approach

Alisher Tleubayev, Ihtiyor Bobojonov, Linde Götz, Heinrich Hockmann and Thomas Glauben

No 253397, IAMO Discussion Papers from Institute of Agricultural Development in Transition Economies (IAMO)

Abstract: Agriculture plays an important role for Kazakhstan not only because of rural employment, but also because of the diversity it brings to its oil dependent economy. A considerable increase in grain exports was achieved during the recent years, however, there still is a large room for in-creasing productivity and efficiency to boost the agricultural potential of the country further. The government of Kazakhstan has introduced several policy packages in the past to boost productivity and efficiency, however, the impact of these reforms has not been yet analyzed quantitatively. Micro level data collected from 200 farms in northern Kazakhstan in 2015 is used in the analysis, in order to fill this research gap. A mixture of evidences is found in terms of policy effect on productivity and efficiency. The results of the analysis showed that direct subsidy access reduced the efficiency, while access to supply chain infrastructure had the opposite effect and increased the efficiency. Therefore, the study concludes that the government should divert its policy support from direct subsidy payments to the improvement of agricultural infrastructure. This will influence positively not only productivity and efficiency, but also Kazakhstan’s commitments towards international and regional trade agreements.

Keywords: Agricultural and Food Policy; Agricultural Finance; Crop Production/Industries; Productivity Analysis (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-cis and nep-eff
Date: 2017
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