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Henderson, H.

Considering technical and allocative efficiency in the inverse farm size–productivity relationship - USA : Wiley, 2015.

Peer review

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.


Text in English

ISSN: 1477-9552 (Online)

Standard No.: https://doi.org/10.1111/1477-9552.12086

Subjects--Topical Terms:
Farm Size
Productivity
Smallholders
Labour market

Subjects--Geographic Terms:
Latin America
Nicaragua