The impact of market structure and capital obsolescence on agricultural productivity at the macroeconomic level

Details

Supervisors

Gaspart, Frédéric

Faculty

Faculté des bioingénieurs

Degree label

Master [120] en sciences agronomiques et industries du vivant, à finalité spécialisée: Agricultural, Food and Environmental Policy Analysis

Abstract

This thesis explores the impact of market structure and capital obsolescence on the yield of both spring and winter wheat in the four northern regions of the Republic of Kazakhstan, using data from the Ministry of Agriculture of the Republic of Kazakhstan and the Bureau of National Statistics of the Republic of Kazakhstan. The country, despite being one of the largest exporters of wheat worldwide, faces several issues hindering the productivity of the agricultural sector within all regions, and capital obsolescence is one of the most addressed by the State itself. The study employs a Fixed Effects model, incorporating variables such as sown land, labor, fertilizers, machinery, market power, climate, and policy changes to assess their influence on wheat yields over a ten-year period (2013-2022). The research highlights the negative effects of obsolete agricultural machinery and high temperatures on wheat yield, emphasizing the need for updated practices and climate resilience. It also suggests that while modern machinery positively impacts productivity, market power may lead to strategic production restrictions. The findings call for further research into the economic and environmental trade-offs of replacing outdated machinery, with a focus on food security and policy implications. Ultimately, the study underscores the critical role of addressing capital obsolescence in agriculture to enhance productivity and ensure long-term sustainability.