EconPapers    
Economics at your fingertips  
 

Are Small Farms Really more Productive than Large Farms?

Fernando Aragon Sanchez, Diego Restuccia () and Juan Pablo Rud
Additional contact information
Fernando Aragon Sanchez: Simon Fraser University
Juan Pablo Rud: Royal Holloway, University of London

No 1230, 2019 Meeting Papers from Society for Economic Dynamics

Abstract: We revisit the long-standing empirical evidence of an inverse relationship between farm size and productivity using rich micro data from Uganda. We show that farm size is nega- tively related with yields (output per hectare), as commonly found in the literature, but positively related with farm productivity (a farm-specific component of total factor pro- ductivity). These conflicting results do not arise because of omitted variables such as land quality, measurement error in output or inputs, or specification issues. Instead, we reconcile the findings emphasizing decreasing returns to scale in farm production and farm-specific distortions. We exploit regional variation in land tenure regimes in Uganda in evaluating the role of farm-specific distortions. Our findings point to the limited value of yields (or land productivity) in establishing the size-productivity relationship. More generally, we highlight farm size as an ineffective instrument for policy implementation since size is deeply con- founded by distortions in developing countries.

New Economics Papers: this item is included in nep-agr, nep-dev and nep-eff
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://economicdynamics.org/meetpapers/2019/paper_1230.pdf (application/pdf)

Related works:
Working Paper: Are Small Farms Really more Productive than Large Farms? (2019) Downloads
Working Paper: Are small farms really more productive than large farms? (2019) Downloads
Working Paper: Are Small Farms Really more Productive than Large Farms? (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed019:1230

Access Statistics for this paper

More papers in 2019 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().

 
Page updated 2019-11-01
Handle: RePEc:red:sed019:1230