2014
DOI: 10.1111/1477-9552.12086
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Considering Technical and Allocative Efficiency in the Inverse Farm Size–Productivity Relationship

Abstract: In the leading explanations for the oft‐observed inverse relationship (IR) between farm size and productivity in developing country agriculture, labour market imperfections have commonly occupied a central role. However, an emerging literature suggests that disparities in technical or allocative efficiency may be driving productivity differentials. Using nationally‐representative panel data from Nicaragua, we develop and employ a four‐stage empirical framework to simultaneously test the competing explanations … Show more

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Cited by 67 publications
(40 citation statements)
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“…() on sugarcane CF schemes in Kenya. Also, the results, put together support the inverse farm size relationship as smaller farmers benefit more from CF than medium and larger farms (Carletto, Savastano, & Zezza, ; Henderson, ; Khataza, Hailu, Doole, Kragt, & Alene, ). This is because small farms have advantages in labor supervision and knowledge.…”
Section: Resultsmentioning
confidence: 68%
“…() on sugarcane CF schemes in Kenya. Also, the results, put together support the inverse farm size relationship as smaller farmers benefit more from CF than medium and larger farms (Carletto, Savastano, & Zezza, ; Henderson, ; Khataza, Hailu, Doole, Kragt, & Alene, ). This is because small farms have advantages in labor supervision and knowledge.…”
Section: Resultsmentioning
confidence: 68%
“…If technical efficiency is highly volatile due to leapfrogging and falling-behind processes for each company, market exit may occur randomly, and predictions about industry development will not be possible. However, if instead the 11 See, for example, Latruffe et al (2004); Bokusheva and Hockmann (2006;Henderson (2014). position or rank of the companies is stable, verifiable statements regarding structural change are possible.…”
Section: Heterogeneity In Efficiencymentioning
confidence: 99%
“…In addition, (ii) not supporting the IR, either partially or completely. Labour market imperfections are the driving force behind the inverse relationships in Nicaragua and Rwanda [18], [19]. Land yields increased with plot size both by season and over the year in China [20].…”
Section: Review Of Related Literaturesmentioning
confidence: 99%