The brics countries and agriculture 4.0

Issue № 7, 2018, article № 8, pages 68-75

Section: ABROAD

Language: Russian

Original language title: РОССИЯ, СТРАНЫ БРИКС И СЕЛЬСКОЕ ХОЗЯЙСТВО 4.0

Keywords: DATA ENVELOPMENT ANALYSIS, AGRICULTURE 4.0, TECHNICAL EFFICIENCY OF AGRICULTURAL PRODUCTION, TECHNOLOGY GAP, DYNAMIC SBM MODEL, METAFRONTIER APPROACH, BRICS COUNTRIES, RUSSIA

Abstract: This study examines the need for the BRICS countries to switch to technologies of Agriculture 4.0 (Digital agriculture)-the current stage of agricultural development. The objectives of this article are: to calculate a technology gap between the BRICS countries and advanced economies in the agricultural production; assess technical efficiency of the BRICS countries’ agriculture within their local groups; analyze the need to switch to technologies of Agriculture 4.0 for the BRICS countries. Data envelopment analysis is used as a methodology for the calculations: a metafrontier approach is applied to a dynamic non-oriented SBM model with constant returns to scale (with five local groups of countries: the CIS, developing economies of Latin America and the Caribbean, developing Asia, developing economies of Africa, located to the south of the equator, advanced economies; 97 countries in total; the time interval of data: 2000-2014). The study shows that the BRICS countries have exhausted their potential of the applied technologies in agricultural production, since they have reached the maximum technical efficiency within the technologies of their local groups. At the same time the technology gap between the BRICS members, with the exception of China, and the advanced economies is relatively large and permanent, which indicates that the majority of BRICS members are not ready to switch to Agriculture 4.0. Of all the BRICS countries, China has the greatest potential for switching to new technologies in agriculture, which can eliminate the technology gap. According to our estimates, the transition to new technologies in Russia can increase its potential output of agricultural products twice with the same expenditure of agricultural resources. As a source of financing for the introduction of new technologies in our country, it is proposed to change the structure of state support of agriculture (by reducing market price support in favour of increasing support to fixed capital formation).

Authors: SHpilko Anatolii Vasilevich, Korotchenia Valerii Mikhailovich