Direct State Support of Agricultural Companies in the Russian Far East: Evaluation of Effects
https://doi.org/10.55959/MSU2070-1381-111-2025-111-122
Abstract
The article analyses the effects of state subsidies on agricultural enterprises in the Far Eastern Federal District, in particular influence on the labor productivity, firm profits, returns on sales and assets, capital deepening. Main hypothesis of the study states that subsidy reception has an impact on economic performance of agricultural enterprises. Our research has been conducted using a difference-in-difference method on the dataset of Far Eastern agricultural producers in 2018–2023. The panel data includes information about 115 companies that received state support in 2021–2022 and 110 companies in the control group. The results showed no statistically significant effect of subsidies on most indicators, excluding 21.2% increase in the capital per worker indicator in 2023. Notable finding of the study suggests negative selection of support recipients: companies that received support first in 2021 had significantly lower labor productivity and profitability in previous years. This inference may indicate the compensatory function of agricultural subsidies, i.e. state support measures are likely provided to negate the disadvantageous farming conditions in the Far East. The obtained results are not clear-cut due to lack of individual entrepreneurs in the dataset. Individual entrepreneurs make up around 80% of all direct state farming support recipients but are not included because of the information deficiency. These findings can be used to further improve the efficiency of state support for rural enterprises and develop a more effective policy for supporting the rural economy in the Far Eastern Federal District.
About the Authors
P. O. Peretyatko
Federal Autonomous Scientific Institution “Eastern State Planning Center”
Russian Federation
Russian Federation
Polina O. Peretyatko, Senior analyst
Moscow
P. A. Andreev
Federal Autonomous Scientific Institution “Eastern State Planning Center”
Russian Federation
Russian Federation
Pavel A. Andreev, Head of “Macroeconomic planning and forecasting” sector
Moscow
O. A. Nazarenko
Federal Autonomous Scientific Institution “Eastern State Planning Center”
Russian Federation
Russian Federation
Oksana A. Nazarenko, Senior analyst
Moscow
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Review
For citations:
Peretyatko P.O., Andreev P.A., Nazarenko O.A. Direct State Support of Agricultural Companies in the Russian Far East: Evaluation of Effects. Public Administration. E-journal (Russia). 2025;1(111):111-122. (In Russ.) https://doi.org/10.55959/MSU2070-1381-111-2025-111-122
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