This paper analyzes the theory that Soviet farm marketing was so price unresponsive that rapid industrialization within the framework of the NEP would have been choked off by rising farm prices and inadequate sales. A model of farm marketing is developed for the period 1913-1928 and is embedded in a general equilibrium model for the Soviet economy. Simulations show that farm marketings would have been substantial and growth would have been rapid if the investment boom of the 1930s had been pursued within the marketing framework of the NEP. However, collectivization did accelerate industrialization by increasing the rate of rural-urban migration.
ASJC Scopus subject areas
- Economics and Econometrics