Is There a Farm-Size Productivity Relationship in African Agriculture? Evidence from Rwanda
Whether the negative relationship between farm size and productivity that is confirmed in a large global literature holds in Africa is of considerable policy relevance. This paper revisits this issue and examines potential causes of the inverse pro...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/02/18910978/farm-size-productivity-relationship-african-griculture-evidence-rwanda http://hdl.handle.net/10986/17304 |
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okr-10986-173042021-04-23T14:03:37Z Is There a Farm-Size Productivity Relationship in African Agriculture? Evidence from Rwanda Ali, Daniel Ayalew Deininger, Klaus ADVERSE EFFECTS AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL PLOTS AGRICULTURAL PRACTICE AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURE CHEMICAL FERTILIZER CLASSIFICATION CLIMATE CLIMATE CHANGE CLIMATIC CONDITIONS COMPETITIVE LABOR MARKETS CONSERVATION CONSOLIDATION CROP CROP CHOICE CROP MIX CROP OUTPUT CROP PRODUCTION CROP TYPE CROPS DATA COLLECTION DEVELOPMENT ECONOMICS DEVELOPMENT STRATEGIES ECONOMETRIC EVIDENCE ECONOMICS EMPLOYMENT EMPLOYMENT OPPORTUNITIES EROSION EXTENSION FACTOR MARKETS FAMILY LABOR FARM FARM EMPLOYMENT FARM FAMILY FARM HOUSEHOLD FARM MANAGEMENT FARM SIZE FARMERS FARMING FARMS FERTILIZER FERTILIZER USE FINANCIAL MARKETS FIXED COSTS FLOODING GENDER GROSS PROFIT GROSS REVENUE INCOME INNOVATIONS INSURANCE INTEGRATION LABOR DEMAND LABOR MARKET LABOR MARKETS LABOUR LABOUR SUPPLY LAND REFORM LAND RESOURCES LAND USE LAND VALUE LAND YIELDS MARKET WAGE MARKET WAGES NATURAL RESOURCES NET PROFIT OUTPUTS PERFECT MARKETS PESTICIDE USE PESTS PH PLANTATION PLOTS POLITICAL ECONOMY PRODUCTION PROCESS PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PUBLIC SERVICES R&D RANGES RESOURCE ALLOCATION RICE RURAL DEVELOPMENT RURAL LABOR SAND SKILLED LABOR SOIL CONSERVATION SOILS TOPOGRAPHY TRANSACTION COSTS WAGE RATES WAGES WETLAND WORKING CAPITAL Whether the negative relationship between farm size and productivity that is confirmed in a large global literature holds in Africa is of considerable policy relevance. This paper revisits this issue and examines potential causes of the inverse productivity relationship in Rwanda, where policy makers consider land fragmentation and small farm sizes to be key bottlenecks for the growth of the agricultural sector. Nationwide plot-level data from Rwanda point toward a constant returns to scale crop production function and a strong negative relationship between farm size and output per hectare as well as intensity of labor use that is robust across specifications. The inverse relationship continues to hold if profits with family labor valued at shadow wages are used, but disappears if family labor is rather valued at village-level market wage rates. These findings imply that, in Rwanda, labor market imperfections, rather than other unobserved factors, seem to be a key reason for the inverse farm-size productivity relationship. 2014-03-18T20:01:10Z 2014-03-18T20:01:10Z 2014-02 http://documents.worldbank.org/curated/en/2014/02/18910978/farm-size-productivity-relationship-african-griculture-evidence-rwanda http://hdl.handle.net/10986/17304 English en_US Policy Research Working Paper;No. 6770 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Rwanda |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADVERSE EFFECTS AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL PLOTS AGRICULTURAL PRACTICE AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURE CHEMICAL FERTILIZER CLASSIFICATION CLIMATE CLIMATE CHANGE CLIMATIC CONDITIONS COMPETITIVE LABOR MARKETS CONSERVATION CONSOLIDATION CROP CROP CHOICE CROP MIX CROP OUTPUT CROP PRODUCTION CROP TYPE CROPS DATA COLLECTION DEVELOPMENT ECONOMICS DEVELOPMENT STRATEGIES ECONOMETRIC EVIDENCE ECONOMICS EMPLOYMENT EMPLOYMENT OPPORTUNITIES EROSION EXTENSION FACTOR MARKETS FAMILY LABOR FARM FARM EMPLOYMENT FARM FAMILY FARM HOUSEHOLD FARM MANAGEMENT FARM SIZE FARMERS FARMING FARMS FERTILIZER FERTILIZER USE FINANCIAL MARKETS FIXED COSTS FLOODING GENDER GROSS PROFIT GROSS REVENUE INCOME INNOVATIONS INSURANCE INTEGRATION LABOR DEMAND LABOR MARKET LABOR MARKETS LABOUR LABOUR SUPPLY LAND REFORM LAND RESOURCES LAND USE LAND VALUE LAND YIELDS MARKET WAGE MARKET WAGES NATURAL RESOURCES NET PROFIT OUTPUTS PERFECT MARKETS PESTICIDE USE PESTS PH PLANTATION PLOTS POLITICAL ECONOMY PRODUCTION PROCESS PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PUBLIC SERVICES R&D RANGES RESOURCE ALLOCATION RICE RURAL DEVELOPMENT RURAL LABOR SAND SKILLED LABOR SOIL CONSERVATION SOILS TOPOGRAPHY TRANSACTION COSTS WAGE RATES WAGES WETLAND WORKING CAPITAL |
| spellingShingle |
ADVERSE EFFECTS AGRICULTURAL DEVELOPMENT AGRICULTURAL ECONOMICS AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL PLOTS AGRICULTURAL PRACTICE AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURE CHEMICAL FERTILIZER CLASSIFICATION CLIMATE CLIMATE CHANGE CLIMATIC CONDITIONS COMPETITIVE LABOR MARKETS CONSERVATION CONSOLIDATION CROP CROP CHOICE CROP MIX CROP OUTPUT CROP PRODUCTION CROP TYPE CROPS DATA COLLECTION DEVELOPMENT ECONOMICS DEVELOPMENT STRATEGIES ECONOMETRIC EVIDENCE ECONOMICS EMPLOYMENT EMPLOYMENT OPPORTUNITIES EROSION EXTENSION FACTOR MARKETS FAMILY LABOR FARM FARM EMPLOYMENT FARM FAMILY FARM HOUSEHOLD FARM MANAGEMENT FARM SIZE FARMERS FARMING FARMS FERTILIZER FERTILIZER USE FINANCIAL MARKETS FIXED COSTS FLOODING GENDER GROSS PROFIT GROSS REVENUE INCOME INNOVATIONS INSURANCE INTEGRATION LABOR DEMAND LABOR MARKET LABOR MARKETS LABOUR LABOUR SUPPLY LAND REFORM LAND RESOURCES LAND USE LAND VALUE LAND YIELDS MARKET WAGE MARKET WAGES NATURAL RESOURCES NET PROFIT OUTPUTS PERFECT MARKETS PESTICIDE USE PESTS PH PLANTATION PLOTS POLITICAL ECONOMY PRODUCTION PROCESS PRODUCTIVITY PROFITABILITY PROPERTY RIGHTS PUBLIC SERVICES R&D RANGES RESOURCE ALLOCATION RICE RURAL DEVELOPMENT RURAL LABOR SAND SKILLED LABOR SOIL CONSERVATION SOILS TOPOGRAPHY TRANSACTION COSTS WAGE RATES WAGES WETLAND WORKING CAPITAL Ali, Daniel Ayalew Deininger, Klaus Is There a Farm-Size Productivity Relationship in African Agriculture? Evidence from Rwanda |
| geographic_facet |
Africa Rwanda |
| relation |
Policy Research Working Paper;No. 6770 |
| description |
Whether the negative relationship
between farm size and productivity that is confirmed in a
large global literature holds in Africa is of considerable
policy relevance. This paper revisits this issue and
examines potential causes of the inverse productivity
relationship in Rwanda, where policy makers consider land
fragmentation and small farm sizes to be key bottlenecks for
the growth of the agricultural sector. Nationwide plot-level
data from Rwanda point toward a constant returns to scale
crop production function and a strong negative relationship
between farm size and output per hectare as well as
intensity of labor use that is robust across specifications.
The inverse relationship continues to hold if profits with
family labor valued at shadow wages are used, but disappears
if family labor is rather valued at village-level market
wage rates. These findings imply that, in Rwanda, labor
market imperfections, rather than other unobserved factors,
seem to be a key reason for the inverse farm-size
productivity relationship. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Ali, Daniel Ayalew Deininger, Klaus |
| author_facet |
Ali, Daniel Ayalew Deininger, Klaus |
| author_sort |
Ali, Daniel Ayalew |
| title |
Is There a Farm-Size Productivity Relationship in African Agriculture? Evidence from Rwanda |
| title_short |
Is There a Farm-Size Productivity Relationship in African Agriculture? Evidence from Rwanda |
| title_full |
Is There a Farm-Size Productivity Relationship in African Agriculture? Evidence from Rwanda |
| title_fullStr |
Is There a Farm-Size Productivity Relationship in African Agriculture? Evidence from Rwanda |
| title_full_unstemmed |
Is There a Farm-Size Productivity Relationship in African Agriculture? Evidence from Rwanda |
| title_sort |
is there a farm-size productivity relationship in african agriculture? evidence from rwanda |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/02/18910978/farm-size-productivity-relationship-african-griculture-evidence-rwanda http://hdl.handle.net/10986/17304 |
| _version_ |
1764436852461273088 |