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In this paper, we use a three-round farm-level panel from rural India to explore the existence and evolution of the inverse relationship between farm size and productivity that has been found in a large empirical literature. While present throughout, the inverse relationship weakened significantly over time; the estimated elasticity of productivity with respect to farm size increased from 0.73 to 0.95 from 1982 to 2007. Key drivers are better functioning labor markets and a narrowing of efficiency differences between own and hired labor, possibly due to greater use of machinery. Structural transformation and a transition towards larger farms thus did not hurt productivity and economic efficiency.

Subject(s): Farm Management

International Development

Marketing

Issue Date: 2015

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/212720

Total Pages: 36

Record appears in: International Association of Agricultural Economists (IAAE) > 2015 Conference, August 9-14, 2015, Milan, Italy





Autor: Deininger, Klaus ; Jin, Songqing ; Liu, Yanyan ; Singh, Sudhir

Fuente: http://ageconsearch.umn.edu/record/212720?ln=en



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