Is Small Beautiful? Returns to Scale in Agriculture of the Amur region

Abstract

The article attempts to answer the question about returns to scale in corporate farms in the Amur region. To answer this question, we use microeconomic panel data describing the performance of 132 corporate farms in the region from 2008 to 2020. We estimate the parameters of the production function and test the hypothesis of constant returns to scale. The obtained results do not allow us to reject the hypothesis of constant returns to scale. This may indicate a shift in technology and (or) efficiency compared to the early 2000s, when decreasing returns to scale were documented.