Spatial development of agricultural production in Russia: The comparative advantages approach

The territorial planning approach to allocating productive forces is based on the fact that territories have competitive advantages in producing specific products. However, in agriculture, the advantages principle cannot be used to shape the allocation patterns, due to a variety of intervening factors, such as the climatic and environmental conditions for agricultural production and the quality of land and availability of water. In the case of Russia, one of the most diverse countries in terms of the territorial disparities in agricultural production, this study examines the location and development patterns of the agricultural sector. The study identifies the competitive advantages of territories by comparing localization of agricultural production, production costs, performance, and profitability of agricultural producers, as well as prices of agricultural products in 78 different administrative regions in Russia. The study reveals which regions have more advantageous conditions for over-concentrating energy capacities, labor resources, fixed capital, and investments. However, at a certain point, over-concentrated production forces can lead to a deterioration in the performance of farmers due to an increase in capital intensity. Therefore, countries with significant regional differences in agricultural production should adjust their spatial development patterns according to the parameters of territories’ comparative advantages.