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Farm size, land fragmentation and economic efficiency in southern Rwanda

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  • Bizimana, Claude
  • Nieuwoudt, W. Lieb
  • Ferrer, Stuart R.D.

Abstract

Butare, where this study was conducted, exhibits one of the highest population densities in Rwanda. As a direct result of population growth, most peasants have small fields and land fragmentation is common. The purpose of this article is to examine the effect of land fragmentation on economic efficiency. Regression analysis shows that area operated is primarily determined by the population-land ratio, non-agricultural employment opportunities, ownership certainty and adequate information through agricultural training. Results from a block-recursive regression analysis indicate that the level of net farm income per hectare, which indirectly reflects greater economic efficiency, is determined by the area operated, use of farm information, field extension staff visits, formal education of a farm operator, and the fragmentation of land holdings. Economies of size are evident in the data. The results obtained using ridge regression support the findings of two-stage least squares. Policies should be implemented to improve the functioning of land rental markets in order to reduce land fragmentation, improve rural education and access to relevant information; and strengthen extension facilities to individual farmers.

Suggested Citation

  • Bizimana, Claude & Nieuwoudt, W. Lieb & Ferrer, Stuart R.D., 2004. "Farm size, land fragmentation and economic efficiency in southern Rwanda," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(2), June.
  • Handle: RePEc:ags:agreko:9489
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    File URL: http://purl.umn.edu/9489
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    References listed on IDEAS

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    1. Arne Hallam, 1991. "Economies of Size and Scale in Agriculture: An Interpretive Review of Empirical Measurement," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 13(1), pages 155-172.
    2. Johnson, Omotunde E G, 1972. "Economic Analysis, The Legal Framework and Land Tenure Systems," Journal of Law and Economics, University of Chicago Press, vol. 15(1), pages 259-276, April.
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    Cited by:

    1. Arimoto, Yutaka, 2010. "Impact of land readjustment project on farmland use and structural adjustment: The case of Niigata, Japan," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61278, Agricultural and Applied Economics Association.
    2. Arimoto, Yutaka, 2011. "The impact of farmland readjustment and consolidation on structural adjustment: The case of Niigata, Japan," CEI Working Paper Series 2011-3, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    3. Chiara Mazzocchi & Guido Sali & Stefano Corsi, 2014. "Fragilità del contesto agricolo periurbano: uno strumento di analisi per il governo del territorio," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2014(3), pages 51-72.
    4. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66.

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    Keywords

    Productivity Analysis;

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