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Does size of operated area matter? Evidence from Malawi's agricultural production

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  • Matchaya, Greenwell C.

Abstract

The objective of this paper was to examine the relationship between farm size and agricultural productivity using data from Malawi. This paper has examined the relationship using ordinary least squares regression with heteroskedasticity consistent covariance matrix (HC3) standard errors having confirmed absence of endogeneity of farm size. The major finding is that, contrary to the findings of earlier studies which reported a positive relationship, there is strong evidence that probably the post market liberalization period (1990s) became characterized by an inverse farm size productivity relationship. This finding suggests that well-thought-after land and credit market interventions or land redistribution from the rich to the land poor households would possibly raise total output thorough productivity gains.

Suggested Citation

  • Matchaya, Greenwell C., 2007. "Does size of operated area matter? Evidence from Malawi's agricultural production," MPRA Paper 11948, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:11948
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    File URL: https://mpra.ub.uni-muenchen.de/11948/1/MPRA_paper_11948.pdf
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    References listed on IDEAS

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    3. Benjamin, Dwayne, 1995. "Can unobserved land quality explain the inverse productivity relationship?," Journal of Development Economics, Elsevier, vol. 46(1), pages 51-84, February.
    4. Andrew Dorward, 1999. "Farm size and productivity in Malawian smallholder agriculture," Journal of Development Studies, Taylor & Francis Journals, vol. 35(5), pages 141-161.
    5. Deininger, Klaus & Zegarra, Eduardo & Lavadenz, Isabel, 2003. "Determinants and Impacts of Rural Land Market Activity: Evidence from Nicaragua," World Development, Elsevier, vol. 31(8), pages 1385-1404, August.
    6. Michael Kevane, 1996. "Agrarian Structure and Agricultural Practice: Typology and Application to Western Sudan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 236-245.
    7. Reardon, Thomas & Kelly, Valerie A. & Crawford, Eric W. & Jayne, Thomas S. & Savadogo, Kimseyinga & Clay, Daniel C., 1996. "Determinants of Farm Productivity in Africa: A Synthesis of Four Case Studies," Food Security International Development Papers 54049, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    8. Lamb, Russell L., 2003. "Inverse productivity: land quality, labor markets, and measurement error," Journal of Development Economics, Elsevier, vol. 71(1), pages 71-95, June.
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    10. Townsend, R.F. & Kirsten, Johann F. & Vink, Nick, 1998. "Farm size, productivity and returns to scale in agriculture revisited: a case study of wine producers in South Africa," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
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    Cited by:

    1. Benjamin Tetteh Anang & Stefan Bäckman & Antonios Rezitis, 2016. "Does farm size matter? Investigating scale efficiency of peasant rice farmers in northern Ghana," Economics Bulletin, AccessEcon, vol. 36(4), pages 2275-2290.

    More about this item

    Keywords

    Farm size; Productivity; Inverse Relationship; Malawi;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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