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Small is Beautiful: Empirical Evidence of an Inverse Relationship between Farm Size and Productive Efficiency in Small-Holder Cassava Production in Ideato North LGA of Imo State

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  • Okoye, B.C
  • Agbaeze, C.C
  • Asumugha, G.N
  • Aniedu, O.C
  • Mbanaso, E.N.A

Abstract

This study examined the relationship between farm size and technical efficiency in small holder cassava production in Ideato LGA of Imo state using data from a 2008 farm-level survey of 90 rural households. The study showed a strong inverse relationship between farm size and technical efficiency. Smaller farms are found to be more technically efficient, than larger farms. These results favour land redistribution policies targeted towards giving lands to the small-holder farmers. Policies of de-emphasizing cassava production in the estate sector while encouraging it in smallholdings will foster equity and efficiency.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17418.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:17418

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Keywords: Farm Size; Productivity and Technical Efficiency;

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  1. Fatma Gul Unal, 2008. "Small Is Beautiful: Evidence of an Inverse Relationship between Farm Size and Yield in Turkey," Economics Working Paper Archive wp_551, Levy Economics Institute.
  2. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, Elsevier, vol. 51(2), pages 193-215, December.
  3. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, Elsevier, vol. 6(1), pages 21-37, July.
  4. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, Elsevier, vol. 38(3), pages 387-399, July.
  5. Thomas Masterson, 2007. "Productivity, Technical Efficiency, and Farm Size in Paraguayan Agriculture," Economics Working Paper Archive wp_490, Levy Economics Institute.
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