FACTOR MARKET ACTIVITY AND THE INVERSE FARM SIZEPRODUCTIVITY RELATIONSHIP IN TANZANIA
Ayala Wineman and
Thomas Jayne ()
No 265405, Feed the Future Innovation Lab for Food Security Policy Research Papers from Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP)
Although the inverse farm size-productivity relationship (IR) is sometimes used to motivate arguments in favor of smallholder-led agricultural development, it remains unclear what drives this relationship. It may be attributed to market imperfections that compel small farms to use land more intensively than large farms. Using a three-wave longitudinal household survey from Tanzania, we examine whether the intensity of the IR is related to local factor market activity for land, labor, credit, and animal and machine traction. The IR is evident in Tanzania, although it disappears when family labor is valued at the prevailing local agricultural wage rate. This suggests that labor market imperfections (possibly linked to other market failures) drive the IR. Furthermore, the IR is significantly weakened in the presence of relatively active markets for most factors of production. This suggests that the IR is at least partly driven by imperfections in rural factor markets, underscoring the importance of strategies to improve the functioning of these markets.
New Economics Papers: this item is included in nep-agr and nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://ageconsearch.umn.edu/record/265405/files/FS ... 9.pdf?subformat=pdfa (application/pdf)
Working Paper: Factor Market Activity and the Inverse Farm Size-Productivity Relationship in Tanzania (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ags:miffrp:265405
Access Statistics for this paper
More papers in Feed the Future Innovation Lab for Food Security Policy Research Papers from Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().