Abstract
The Russian agricultural sector needs to improve production technologies, increase the share of high added value products in the structure of production, reduce unit costs, improve labour efficiency, and implement effective management innovations. Issues of unit cost reduction deserve special consideration. In this regard, the present study examines the development of the agricultural sector by using an indicator of total factor productivity (TFP) as a measure of efficiency. The article aims to determine the differentiation of Russian regions by TFP based on the author’s assessment methodology. An analysis of TFP dynamics revealed some regions that achieved indicators exceeding the national average, as well as leading and lagging regions. The highest total factor productivity growth in 2011–2020 was observed in Pskov, Penza, Oryol, Ryazan oblasts, Kamchatka krai, etc. The average Russian value of this indicator is characteristic of Sverdlovsk and Astrakhan oblasts. Tyumen and Sakhalin oblasts, Primorsky and Stavropol krais, the Republic of Karelia, Chelyabinsk oblast, Jewish Autonomous oblast, Chukotka Autonomous okrug, and the Republic of Ingushetia are in the group of lagging regions. Factors contributing to Russia’s long-term agricultural growth include effective investment, technological progress, and growing TFP rates. An increase in farmers’ demand for advanced technologies necessary for market share maintenance and survival can be a driver of innovative development. However, if major innovations are poorly implemented, high growth rate of total factor productivity is difficult to sustain; it will gradually decline as the quality of innovation activities decreases.
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