Econometric analysis of the crops’ production prime cost in steppe zone
Efficiency of agrarian production depends on the characteristics of the natural complex in specific territory. Managing costs on crop production in steppe zone is largely determined by correctly chosen strategy of development and tools of its implementation, taking into account cost and innovative technologies. The purpose of this paper is to identify possible ways to reduce the cost of crop production by constructing an econometric model. Searching of the most efficient ways of working agrarian enterprise is grounded by the intense technological progress, with considerable attention which is paid to the econometric modelling. It provides the opportunity not only to see the relationship between the studied quantitative factors, but also to predict the results of activities in an analytical form. The paper proposes an econometric model of the crops’ yield formation and identifies ways to reduce the cost of crop production. The hypothesis of a linear relation between the prime cost, expenditures and yield is proved. As a result of the analysis, the dependence of production costs on crop yields and prime costs, the opportunity to use the survey data to predict future economic factors in agriculture is given.
JEL codes: C00, C02, C15, Q10.
Article in: English
Published on-line: 2014-11-18
Keyword(s): crop production, expenditures, index analysis, prime costs, productivity
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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355
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