Increasing total factor productivity as a condition for enhancing competitiveness of the Russian agriculture: regional features

ABSTRACT

The aim of the paper is to analyse the dynamics of total factor productivity of agriculture (TFP) in Russia as a whole and in the regional context as the basis for increasing competitiveness of the industry in the context of a pandemic and environmental shocks. As a result of the calculations, it was revealed that the basic index of agricultural growth in Russia for the period from 2005 to 2019 was 1.62, TFP growth occurred with an increase in the output of agricultural products and a decrease in the volume of resources for its production. Against the background of TFP growth, the foreign trade competitiveness of the Russian agriculture increased. The export of agricultural products increased 5.5 times over this period, the country became a net exporter. In 2020, during the COVID-19 pandemic, agricultural production increased by 1.5%, and exports grew by 20% in both volume and value. In the federal subjects of Russia, dynamics of output, resources growth vary markedly. Such dynamics lead to big regional differences in agricultural TFP dynamics. Based on the calculations performed for 2005-2019 (2005 is the base year), the authors reveal a significant unevenness of TFP dynamics in the regions of Russia. The first group with the highest TFP rates includes 17 regions from the Central (9 regions), Privolzhsky (3 regions), Northwest (2 regions), Southern (2 regions), North Caucasian (1 region) Federal Districts. In Kursk, Oryol, Belgorod and Lipetsk Oblast, TFP more than doubled over the period under review (2.69;2.57;2.37;2.35, respectively), in the remaining 13 regions of the first group the TFP growth is from 1.65 up to 1.99. The second group consists of regions with cumulative TFP growth values which are less than 1.61, but more than 1.00. It is the most numerous group. It includes 43 regions from all federal districts of the Russian Federation. In 18 regions, the value of TFP growth over the period ranges from 1.31 to 1.61. And in the remaining 25 regions, the values are very low from 1.00 to 1.31. The third group contains 12 regions, five of which are in the Far Eastern Federal District. The growth of the total factor productivity in the regions that are currently lagging behind in this indicator will contribute to the growth of competitiveness of the Russian agriculture.