Cross-Sectoral and Price Interactions: a Key to Development of Foresight and Management System in Agribusiness

Abstract

Objectives: To research intersectoral interaction in agricultural production, considering price influence on the part of production and consumption. The object is the dynamic series of indices of production of crop products and livestock, along with indices of producer prices from agriculture and consumer price indices for food products in general for the Russian Federation. It was supposed to use the results of research in the process of management and Forsyth agribusiness at the federal and regional levels. Methods: A general exploratory analysis of data was used as the essential tool for analysis, and the vector model of correction of errors (VECM) reveals the bidirectional influence of factors on each other with adjustment on long-term co-integration. A test on the Granger causality was also performed. Results: Based on the received data, it is possible to conclude the extraordinary influence of livestock indices on the other ones that were possibly caused by economic and institutional peculiarities of the Russian agrarian-industrial complex and agricultural production. Accordingly, the authors proposed the main directions of the transformation of the agribusiness management system at the level of specific organizations and institutions of regional management. Adaptive and constructive approaches in the transformation of the control system will allow overcoming the trap of extensive development.