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There has been little research on the effects of group membership on the productivity and efficiency of agricultural enterprises in Russia. This chapter analyses whether farms in the Belgorod Oblast of Russia that belong to agroholdings (entities composed of groups of agricultural enterprises) perform better than do independent farms (individual agricultural enterprises that are independent of agroholdings). We calculate partial land and labour productivity, total factor productivity and technical efficiency scores for these two categories of farms: agroholdings and independent farms. The results are used to decompose total factor productivity (TFP) into a scale effect, a technological change effect and a technical efficiency effect. Total factor productivity growth and efficiency for agroholdings exceeds that for independent farms.

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