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Considering Technical and Allocative Efficiency in the Inverse Farm Size–Productivity Relationship

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  • Heath Henderson

Abstract

type="main" xml:id="jage12086-abs-0001"> In the leading explanations for the oft-observed inverse relationship (IR) between farm size and productivity in developing country agriculture, labour market imperfections have commonly occupied a central role. However, an emerging literature suggests that disparities in technical or allocative efficiency may be driving productivity differentials. Using nationally-representative panel data from Nicaragua, we develop and employ a four-stage empirical framework to simultaneously test the competing explanations for the IR. While efficiency differences exert a significant impact on all productivity indicators, their explanatory power is insufficient to rule out labour market imperfections as the driving force behind the relationship.

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  • Heath Henderson, 2015. "Considering Technical and Allocative Efficiency in the Inverse Farm Size–Productivity Relationship," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(2), pages 442-469, June.
    • Handle: RePEc:bla:jageco:v:66:y:2015:i:2:p:442-469
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    Cited by:

    1. Eliška Svobodová & Radka Redlichová & Gabriela Chmelíková & Ivana Blažková, 2022. "Are the Agricultural Subsidies Based on the Farm Size Justified? Empirical Evidence from the Czech Republic," Agriculture, MDPI, vol. 12(10), pages 1-18, September.
    2. West, Steele, 2021. "The Estimation of Farm Business Inefficiency in the Presence of Debt Repayment," 2021 Conference, August 17-31, 2021, Virtual 315048, International Association of Agricultural Economists.
    3. de Souza Filho, Hildo Meirelles & Carrer, Marcelo José & Saes, Maria Sylvia Macchione & Gomes, Leonardo Augusto de Vasconcelos & Nicolella, Alexandre Chibebe, 2019. "Performance heterogeneity and strategic orientation: An analysis of small farmers of an agrarian reform project in Brazil," Land Use Policy, Elsevier, vol. 86(C), pages 23-30.
    4. Akamin, Ajapnwa & Bidogeza, Jean-Claude & Minkoua N, Jules René & Afari-Sefa, Victor, 2017. "Efficiency and productivity analysis of vegetable farming within root and tuber-based systems in the humid tropics of Cameroon," MPRA Paper 85329, University Library of Munich, Germany.
    5. Xingguang Li & Xuexi Huo, 2022. "Agricultural labor markets and the inverse plot size–productivity relationship: Evidence from China's apple growers," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 2163-2183, November.
    6. Haixia Wu & Hantao Hao & Hongzhen Lei & Yan Ge & Hengtong Shi & Yan Song, 2021. "Farm Size, Risk Aversion and Overuse of Fertilizer: The Heterogeneity of Large-Scale and Small-Scale Wheat Farmers in Northern China," Land, MDPI, vol. 10(2), pages 1-15, January.
    7. Gautam, Madhur & Ahmed, Mansur, 2019. "Too small to be beautiful? The farm size and productivity relationship in Bangladesh," Food Policy, Elsevier, vol. 84(C), pages 165-175.
    8. Bevis, Leah EM. & Barrett, Christopher B., 2020. "Close to the edge: High productivity at plot peripheries and the inverse size-productivity relationship," Journal of Development Economics, Elsevier, vol. 143(C).
    9. Arash Dourandish & Sayed Saghaian & Naser Shahnoushi Forushani & Nazanin Mohammadrezazadeh & Sina Kuhestani, 2020. "The Relation Between Property Rights, Farm Size and Technical Efficiency for the Developing Countries' Agricultural Sector," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(5), pages 749-762, July.
    10. Ayala Wineman & Thomas S. Jayne, 2021. "Factor Market Activity and the Inverse Farm Size-Productivity Relationship in Tanzania," Journal of Development Studies, Taylor & Francis Journals, vol. 57(3), pages 443-464, March.
    11. Nguyen-Anh, Tuan & Hoang-Duc, Chinh & Tiet, Tuyen & Nguyen-Van, Phu & To-The, Nguyen, 2022. "Composite effects of human, natural and social capitals on sustainable food-crop farming in Sub-Saharan Africa," Food Policy, Elsevier, vol. 113(C).
    12. Wang, Sun Ling & Rada, Nicholas E. & Williams, Ryan C., 2021. "Potential Climatic Effects on the U.S. Crop Farm Productivity," 2021 Annual Meeting, August 1-3, Austin, Texas 314088, Agricultural and Applied Economics Association.
    13. Fitz, Dylan, 2018. "Evaluating the impact of market-assisted land reform in Brazil," World Development, Elsevier, vol. 103(C), pages 255-267.
    14. Helfand, Steven M. & Taylor, Matthew P.H., 2021. "The inverse relationship between farm size and productivity: Refocusing the debate," Food Policy, Elsevier, vol. 99(C).
    15. Julien, Jacques C. & Bravo-Ureta, Boris E. & Rada, Nicholas E., 2019. "Assessing farm performance by size in Malawi, Tanzania, and Uganda," Food Policy, Elsevier, vol. 84(C), pages 153-164.
    16. Xiaoheng Zhang & Xiaohua Yu & Xu Tian & Xianhui Geng & Yingheng Zhou, 2019. "Farm size, inefficiency, and rice production cost in China," Journal of Productivity Analysis, Springer, vol. 52(1), pages 57-68, December.
    17. Shichao Yuan & Jian Wang, 2022. "Involution Effect: Does China’s Rural Land Transfer Market Still Have Efficiency?," Land, MDPI, vol. 11(5), pages 1-18, May.
    18. Ferreira, M. & Feres, J.G., 2018. "Farm Size and Productive Efficiency in Brazilian Amazon," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277289, International Association of Agricultural Economists.
    19. Dessy,Sylvain Eloi & Tiberti,Luca & Tiberti,Marco & Zoundi,David Aime, 2021. "Polygyny and Farm Households' Resilience to Climate Shocks," Policy Research Working Paper Series 9663, The World Bank.
    20. Xiang Deng & Jie Peng & Chunlin Wan, 2024. "The Impact of Internet Use on Land Productivity: Evidence from China Land Economy Survey," Land, MDPI, vol. 13(2), pages 1-21, February.
    21. Chiarella, Cristina & Meyfroidt, Patrick & Abeygunawardane, Dilini & Conforti, Piero, 2023. "Balancing the trade-offs between land productivity, labor productivity and labor intensity," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 52(10), pages 1618-1634.
    22. Xiaolin Guo & Guanming Shi & Linyi Zheng & Wenrong Qian, 2022. "How Does the Land Rental Market Participation Affect Household Efficiency? Evidence from Rural China," IJERPH, MDPI, vol. 19(23), pages 1-14, December.
    23. Juanjuan Cheng & Qian Wang & Huanmin Zhang & Toyohiko Matsubara & Naoki Yoshikawa & Jin Yu, 2022. "Does Farm Size Expansion Improve the Agricultural Environment? Evidence from Apple Farmers in China," Agriculture, MDPI, vol. 12(11), pages 1-23, October.
    24. Ferreira, Marcelo Dias Paes & Féres, José Gustavo, 2020. "Farm size and Land use efficiency in the Brazilian Amazon," Land Use Policy, Elsevier, vol. 99(C).

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