4.4 Article

Considering Technical and Allocative Efficiency in the Inverse Farm Size-Productivity Relationship

期刊

JOURNAL OF AGRICULTURAL ECONOMICS
卷 66, 期 2, 页码 442-469

出版社

WILEY
DOI: 10.1111/1477-9552.12086

关键词

Inverse relationship; farm size-productivity; technical and allocative efficiency; smallholder agriculture; Latin America; Nicaragua; labour market

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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 for the IR. While efficiency differences exert a significant impact on all productivity indicators, their explanatory power is insufficient to rule out labour market imperfections as the driving force behind the relationship.

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