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Understanding the Effect of Land Fragmentation on Farm Level Efficiency: An Application of Quantile Regression-Based Thick Frontier Approach to Maize Production in Kenya

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  • Kiplimo, L.B.
  • Ngeno, V.

Abstract

Amidst declining agricultural productivity, farm level efficiency and persistent food security problems in Africa, land fragmentation is emerging as a key empirical and policy question in the region. In this paper, a novel approach is used to estimate the effects of land fragmentation. Quantile Regression-Based Thick Frontier (TFA) is applied to show how the overall change in landholding affects production efficiency in production. Applying cross-sectional survey data from Kenya, the results showed that the least efficient group of maize farmers in Kenya were those with the small average land holding attaining a maximum output of 70% of the actual attainable output. In terms of scale of production, the least efficient group fall short by 58% compared to their large scale peers. This approach is semi-parametric requiring few assumptions with simplified figures easy for policy communication.

Suggested Citation

  • Kiplimo, L.B. & Ngeno, V., 2016. "Understanding the Effect of Land Fragmentation on Farm Level Efficiency: An Application of Quantile Regression-Based Thick Frontier Approach to Maize Production in Kenya," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 249280, African Association of Agricultural Economists (AAAE).
  • Handle: RePEc:ags:aaae16:249280
    DOI: 10.22004/ag.econ.249280
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    File URL: http://ageconsearch.umn.edu/record/249280/files/337.%20Land%20fragmentation%20in%20Kenya.pdf
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    References listed on IDEAS

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    1. Chunping Liu & Audrey Laporte & Brian S. Ferguson, 2008. "The quantile regression approach to efficiency measurement: insights from Monte Carlo simulations," Health Economics, John Wiley & Sons, Ltd., vol. 17(9), pages 1073-1087.
    2. Blarel, Benoit, et al, 1992. "The Economics of Farm Fragmentation: Evidence from Ghana and Rwanda," World Bank Economic Review, World Bank Group, vol. 6(2), pages 233-254, May.
    3. Berger, Allen N. & Humphrey, David B., 1991. "The dominance of inefficiencies over scale and product mix economies in banking," Journal of Monetary Economics, Elsevier, vol. 28(1), pages 117-148, August.
    4. Philip J. Dawson & John Lingard & Christopher H. Woodford, 1991. "A Generalized Measure of Farm-Specific Technical Efficiency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1098-1104.
    5. Popp, J. & Lakner, Z. & Harangi-Rákos, M. & Fári, M., 2014. "The effect of bioenergy expansion: Food, energy, and environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 559-578.
    6. Jeffrey D. Michler & Gerald E. Shively, 2015. "Land Tenure, Tenure Security and Farm Efficiency: Panel Evidence from the Philippines," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(1), pages 155-169, February.
    7. Kumbhakar,Subal C. & Wang,Hung-Jen & Horncastle,Alan P., 2015. "A Practitioner's Guide to Stochastic Frontier Analysis Using Stata," Cambridge Books, Cambridge University Press, number 9781107609464, December.
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    Keywords

    Crop Production/Industries; Land Economics/Use;

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