Comparative Analysis of the Efficiency of Russian and European Dairy Companies

This paper is devoted to investigation of efficiency and competitiveness determinants of Russian and German dairy enterprises. We found the company size, interest expenses, investments in the dairy firm stocks and exports have the most significant influence on Russian dairy firms efficiency, while the company sixe, investments in fixed and intangible assets, turnover and assets profitability are the key competitiveness factors of Russian dairy enterprises. For German dairy companies we got that the high level of investments in the fixed assets, sufficient solvency and export-orientedness are the main reasons for the high efficiency and competitiveness of the enterprises. Also this paper confirm significance of the spatial effects in the data of dependent variables of Russian and German dairy enterprises, that is important to consider for obtaining effective and unbiased regression estimates. The main contribution of the study is to provide good recommendations for increasing Russian dairy companies efficiency and competitiveness, supported with the empirical evidences.