Farm Size and the Intensity of Land Use in Gujarat

Andrew Newell, Kiran Pandya () and James Symons

Oxford Economic Papers, 1997, vol. 49, issue 2, 307-15

Abstract: This paper investigates why smaller farms appear to use land more intensively than larger farms in India. Using data from 400 small farms in Gujarat, the authors find the inverse relationship between output per hectare and farm size is explained by regional variations in fertility and labor supply. Within villages, larger farms produce a little more output per hectare with much less labor per hectare. This is explained by the relative abundance of family labor on small farms. Family size impacts positively on farm labor demand, suggesting perhaps a wedge between the opportunity cost of family labor and the wage of hired labor. Copyright 1997 by Royal Economic Society.

Date: 1997
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