Determinants of productivity and efficiency of wheat production in Kazakhstan: A Stochastic Frontier Approach
2017
Tleubayev, Alisher | Bobojonov, Ihtiyor | Götz, Linde | Hockmann, Heinrich | Glauben, Thomas
Agriculture plays an important role for Kazakhstan not only because of rural employment, but alsobecause of the diversity it brings to its oil dependent economy. A considerable increase in grainexports was achieved during the recent years, however, there still is a large room for in-creasingproductivity and efficiency to boost the agricultural potential of the country further. The governmentof Kazakhstan has introduced several policy packages in the past to boost productivityand 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, inorder to fill this research gap. A mixture of evidences is found in terms of policy effect onproductivity and efficiency. The results of the analysis showed that direct subsidy access reducedthe efficiency, while access to supply chain infrastructure had the opposite effect and increasedthe efficiency. Therefore, the study concludes that the government should divert its policysupport from direct subsidy payments to the improvement of agricultural infrastructure. This willinfluence positively not only productivity and efficiency, but also Kazakhstan’s commitmentstowards international and regional trade agreements.
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