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Reconsidering Conventional Explanations of the Inverse Productivity-Size Relationship

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  • Barrett, Christopher B.
  • Bellemare, Marc F.
  • Hou, Janet Y.

Abstract

Summary The inverse productivity-size relationship is one of the oldest puzzles in development economics. Two conventional explanations for the inverse relationship have emerged in the literature: (i) factor market imperfections that cause cross-sectional variation in household-specific shadow prices and (ii) the omission of soil quality measurements. This study employs precise soil quality measurements at the plot level with multiple plots per household so as to test both conventional explanations simultaneously. Empirical results show that only a small portion of the inverse productivity-size relationship is explained by market imperfections and none of it seems attributable to the omission of soil quality measurements.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 1 (January)
Pages: 88-97

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:1:p:88-97

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: inverse relationship productivity market failures soil characteristics sub-Saharan Africa Madagascar;

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References

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The Inverse Farm Size–Productivity Relationship: “Proof” that Smallholders Can Feed the World?
    by Marc F. Bellemare in Marc F. Bellemare on 2012-10-22 09:00:05
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Mark R. Rosenzweig & Andrew D. Foster, 2010. "Is There Surplus Labor in Rural India?," Working Papers 991, Economic Growth Center, Yale University.
  2. Chapoto, Antony & Mabiso, Athur & Bonsu, Adwinmea, 2013. "Agricultural commercialization, land expansion, and homegrown land-scale farmers: Insights from Ghana:," IFPRI discussion papers 1286, International Food Policy Research Institute (IFPRI).
  3. Pieralli, Simone, 2012. "Sources of measured agricultural yield difference," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124771, Agricultural and Applied Economics Association.
  4. Ali, Daniel Ayalew & Deininger, Klaus, 2014. "Is there a farm-size productivity relationship in African agriculture ? evidence from Rwanda," Policy Research Working Paper Series 6770, The World Bank.
  5. Kilic, Talip & Zezza, Alberto & Carletto, Calogero & Savastano, Sara, 2013. "Missing(ness) in action : selectivity bias in GPS-based land area measurements," Policy Research Working Paper Series 6490, The World Bank.
  6. Carletto, Calogero & Savastano, Sara & Zezza, Alberto, 2013. "Fact or artifact: The impact of measurement errors on the farm size–productivity relationship," Journal of Development Economics, Elsevier, vol. 103(C), pages 254-261.
  7. Verschelde, Marijn & D'Haese, Marijke F.C. & Vandamme, Ellen & Rayp, Glenn, 2011. "Challenging Small-scale Farming, A Non-parametric Analysis of the (Inverse) Relationship Between Farm Productivity and Farm Size in Burundi," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115550, European Association of Agricultural Economists.
  8. Holden, Stein & Otsuka, Keijiro, 2013. "The Roles of Land Tenure Reforms and Land Markets in the Context of Population Growth and Land Use Intensification in Africa," CLTS Working Papers 15/13, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  9. Carletto, Calogero & Gourlay, Sydney & Winters, Paul, 2013. "From guesstimates to GPStimates : land area measurement and implications for agricultural analysis," Policy Research Working Paper Series 6550, The World Bank.
  10. Marc F. Bellemare, 2010. "Agricultural extension and imperfect supervision in contract farming: evidence from Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 41(6), pages 507-517, November.
  11. Klaus Deininger & Denys Nizalov & Sudhir K Singh, 2013. "Are mega-farms the future of global agriculture? Exploring the farm size-productivity relationship for large commercial farms in Ukraine," Discussion Papers 49, Kyiv School of Economics.
  12. Tomasz Gerard Czekaj & Arne Henningsen, 2012. "Comparing Parametric and Nonparametric Regression Methods for Panel Data: the Optimal Size of Polish Crop Farms," IFRO Working Paper 2012/12, University of Copenhagen, Department of Food and Resource Economics.
  13. Francesco Cinnirella & Erik Hornung, 2011. "Landownership Concentration and the Expansion of Education," Working Papers 0010, European Historical Economics Society (EHES).
  14. Guilherme Berse Rodrigues Lambais & Marcelo Marques De Magalhães & José Maria Ferreira Jardim Da Silveira, 2014. "Land Reform And Technical Efficiency: Panel Data Evidence From Northeastern Brazil," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 200, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  15. Holden, Stein & Fisher, Monica, 2013. "Can area measurement error explain the inverse farm size productivity relationship?," CLTS Working Papers 12/13, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  16. Deininger, Klaus & Nizalov, Denys & Singh, Sudhir K, 2013. "Are mega-farms the future of global agriculture ? exploring the farm size-productivity relationship," Policy Research Working Paper Series 6544, The World Bank.
  17. Bellemare, Marc F., 2010. "The Productivity Impacts of de Jure and de Facto Land Rights," MPRA Paper 23639, University Library of Munich, Germany.
  18. Larson, Donald F. & Otsuka, Keijiro & Matsumoto, Tomoya & Kilic, Talip, 2012. "Should African rural development strategies depend on smallholder farms ? an exploration of the inverse productivity hypothesis," Policy Research Working Paper Series 6190, The World Bank.
  19. Klasen, Stephan & Reimers, Malte, 2013. "Looking at Pro-Poor Growth from an Agricultural Perspective," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149745, Agricultural and Applied Economics Association.

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