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Research article - Peer-reviewed, 2016

Governance of production co-operatives in Russian agriculture

Nilsson, Jerker; Golovina, Svetlana; Hess, Sebastian; Wolz, Axel


Many Soviet kolkhozy and sovkhozy were transformed into agricultural production co-operatives, because the farm workers would have had large transaction costs in any other type of organization. These co-operatives still hold a strong market position. This study explores the hypothesis that this market strength could be due to low governance costs, obtained through strong manager power. As managers want the co-operative to survive, they make limited investments in the co-operative and pay low wages. The members, however, do not consider this to be problematic. They appreciate the community within the village, their private plots of land and the co-operative's services. Hence the existence of the co-operatives is not threatened.


Russia; production co-operative; labour co-operative; governance; agriculture

Published in

Annals of Public and Cooperative Economics
2016, volume: 87, number: 4, pages: 541-562

Authors' information

Swedish University of Agricultural Sciences, Department of Economics
Golovina, Svetlana
Kurgan State Agricultural Academy
Hess, Sebastian
Kiel University (CAU)
Hess, Sebastian
Swedish University of Agricultural Sciences, Department of Economics
Wolz, Axel
Leibniz Institute of Agricultural Development in Transition Economies (IAMO)

UKÄ Subject classification

Business Administration

Publication Identifiers


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