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Is There a Farm Size–Productivity Relationship in African Agriculture? Evidence from Rwanda

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  • Daniel Ayalew Ali
  • Klaus Deininger

Abstract

Whether the negative relationship between farm size and crop productivity that is confirmed in a large global literature holds in Africa is of considerable policy relevance. Plot-level data from Rwanda point toward constant returns to scale and a strong negative relationship between farm size and crop output per hectare that is robust across specifications and emerges also if profits with family labor valued at shadow wages are used but disappears if family labor is valued at market rates. In Rwanda, labor market imperfections, rather than other unobserved factors, seem to be a key reason for the inverse farm-size productivity relationship.

Suggested Citation

  • Daniel Ayalew Ali & Klaus Deininger, 2015. "Is There a Farm Size–Productivity Relationship in African Agriculture? Evidence from Rwanda," Land Economics, University of Wisconsin Press, vol. 91(2), pages 317-343.
  • Handle: RePEc:uwp:landec:v:91:y:2015:i:2:p:317-343
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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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