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Land Misallocation and Productivity

Diego Restuccia () and Raul Santaeulalia-Llopis

Working Papers from University of Toronto, Department of Economics

Abstract: Using detailed household-farm level data from Malawi, we measure real farm total factor productivity (TFP) controlling for a wide array of factor inputs, land quality, and transitory shocks. The distribution of farm TFP has substantial dispersion but factor inputs are roughly evenly spread among farmers, implying a strong negative effect on agricultural productivity. A reallocation of factors to their efficient use among existing farmers would increase agricultural productivity by a factor of 3.6-fold. The gains from reallocation are 2.6 times larger for farms with no marketed land than for farms that operate marketed land.

Keywords: misallocation; land; productivity; agriculture; Malawi; micro data. (search for similar items in EconPapers)
JEL-codes: O1 O4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-eff
Date: 2015-05-16
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Related works:
Working Paper: Land Misallocation and Productivity (2017) Downloads
Working Paper: Land Misallocation and Productivity (2017) Downloads
Working Paper: Land Misallocation and Productivity (2017) Downloads
Working Paper: Land Misallocation and Productivity (2015) Downloads
Working Paper: Land Misallocation and Productivity (2014)
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