Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India

Although a large literature discusses the productivity effects of land fragmentation, measurement and potential endogeneity issues are often overlooked. This paper uses several measures of fragmentation and controls for endogeneity and crop choice...

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Main Authors:	Deininger, Klaus, Monchuk, Daniel, Nagarajan, Hari K., Singh, Sudhir K.
Format:	Publications & Research
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014
Subjects:	ACCOUNTING ADVERSE EFFECTS ADVERSE IMPACTS AGRICULTURAL BUSINESS AGRICULTURAL ECONOMICS AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTOR AGRICULTURE CENTRALLY PLANNED ECONOMIES CEREALS CHILD LABOR COST FUNCTIONS CREDIT MARKETS CROP CROP INCOME CROP PRODUCTION CROPLAND CROPS CULTIVATION DEVELOPMENT POLICY DIVERSIFICATION ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC HISTORY ECONOMIC RESEARCH ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUIPMENT EXTERNALITIES FACTOR DEMAND FACTOR MARKETS FAMILY LABOR FARM FARM HOUSEHOLDS FARM SELF-EMPLOYMENT FARM SIZE FARM TECHNOLOGY FARMERS FARMING FARMS FERTILIZER FERTILIZERS FRUITS HARVESTING HIGH WAGES HOUSEHOLD INCOME INCOME INHERITANCE INSURANCE IRRIGATION LABOR COSTS LABOR MARKET LAND ACQUISITION LAND ASSETS LAND LEASING LAND OWNERSHIP LAND PREPARATION LAND PRODUCTIVITY LAND USE PLANNING LANDHOLDINGS LIVESTOCK MAIZE MARGINAL FARMERS MARKET WAGES OILSEEDS ORCHARDS OUTPUTS PADDY PER CAPITA INCOME PEST CONTROL PESTICIDE PESTS POPULATION GROWTH PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRODUCTION COST PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INCREASES PULSES RESOURCE ALLOCATION RETURNS TO SCALE RICE RURAL DEVELOPMENT RURAL HOUSEHOLDS RURAL POVERTY SEED SEEDLINGS SEEDS SMALL FARMERS SMALL FARMS TOTAL COSTS TOTAL OUTPUT TUBERS VARIABLE INPUTS VEGETABLES VILLAGE LEVEL WAGE RATES WHEAT
Online Access:	http://documents.worldbank.org/curated/en/2014/11/20346301/land-fragmentation-increase-cost-cultivation-evidence-india http://hdl.handle.net/10986/20632

id	okr-10986-20632
recordtype	oai_dc
spelling	okr-10986-206322021-04-23T14:03:59Z Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India Deininger, Klaus Monchuk, Daniel Nagarajan, Hari K. Singh, Sudhir K. ACCOUNTING ADVERSE EFFECTS ADVERSE IMPACTS AGRICULTURAL BUSINESS AGRICULTURAL ECONOMICS AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTOR AGRICULTURE CENTRALLY PLANNED ECONOMIES CEREALS CHILD LABOR COST FUNCTIONS CREDIT MARKETS CROP CROP INCOME CROP PRODUCTION CROPLAND CROPS CULTIVATION DEVELOPMENT POLICY DIVERSIFICATION ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC HISTORY ECONOMIC RESEARCH ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUIPMENT EXTERNALITIES FACTOR DEMAND FACTOR MARKETS FAMILY LABOR FARM FARM HOUSEHOLDS FARM SELF-EMPLOYMENT FARM SIZE FARM TECHNOLOGY FARMERS FARMING FARMS FERTILIZER FERTILIZERS FRUITS HARVESTING HIGH WAGES HOUSEHOLD INCOME INCOME INHERITANCE INSURANCE IRRIGATION LABOR COSTS LABOR MARKET LAND ACQUISITION LAND ASSETS LAND LEASING LAND OWNERSHIP LAND PREPARATION LAND PRODUCTIVITY LAND USE PLANNING LANDHOLDINGS LIVESTOCK MAIZE MARGINAL FARMERS MARKET WAGES OILSEEDS ORCHARDS OUTPUTS PADDY PER CAPITA INCOME PEST CONTROL PESTICIDE PESTS POPULATION GROWTH PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRODUCTION COST PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INCREASES PULSES RESOURCE ALLOCATION RETURNS TO SCALE RICE RURAL DEVELOPMENT RURAL HOUSEHOLDS RURAL POVERTY SEED SEEDLINGS SEEDS SMALL FARMERS SMALL FARMS TOTAL COSTS TOTAL OUTPUT TUBERS VARIABLE INPUTS VEGETABLES VILLAGE LEVEL WAGE RATES WHEAT Although a large literature discusses the productivity effects of land fragmentation, measurement and potential endogeneity issues are often overlooked. This paper uses several measures of fragmentation and controls for endogeneity and crop choice by looking at inherited paddy and wheat plots to show that these issues matter empirically. While crop choice can mitigate effects, fragmentation as measured by the Simpson index increases production cost and fosters substitution of labor for machinery, especially for small and medium farmers. Greater distances between fragments have a smaller effect. Creating opportunities for market-based consolidation could be one step to limit fragmentation-induced cost increases. 2014-12-03T20:12:56Z 2014-12-03T20:12:56Z 2014-11 http://documents.worldbank.org/curated/en/2014/11/20346301/land-fragmentation-increase-cost-cultivation-evidence-india http://hdl.handle.net/10986/20632 English en_US Policy Research Working Paper;No. 7085 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia India
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	ACCOUNTING ADVERSE EFFECTS ADVERSE IMPACTS AGRICULTURAL BUSINESS AGRICULTURAL ECONOMICS AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTOR AGRICULTURE CENTRALLY PLANNED ECONOMIES CEREALS CHILD LABOR COST FUNCTIONS CREDIT MARKETS CROP CROP INCOME CROP PRODUCTION CROPLAND CROPS CULTIVATION DEVELOPMENT POLICY DIVERSIFICATION ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC HISTORY ECONOMIC RESEARCH ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUIPMENT EXTERNALITIES FACTOR DEMAND FACTOR MARKETS FAMILY LABOR FARM FARM HOUSEHOLDS FARM SELF-EMPLOYMENT FARM SIZE FARM TECHNOLOGY FARMERS FARMING FARMS FERTILIZER FERTILIZERS FRUITS HARVESTING HIGH WAGES HOUSEHOLD INCOME INCOME INHERITANCE INSURANCE IRRIGATION LABOR COSTS LABOR MARKET LAND ACQUISITION LAND ASSETS LAND LEASING LAND OWNERSHIP LAND PREPARATION LAND PRODUCTIVITY LAND USE PLANNING LANDHOLDINGS LIVESTOCK MAIZE MARGINAL FARMERS MARKET WAGES OILSEEDS ORCHARDS OUTPUTS PADDY PER CAPITA INCOME PEST CONTROL PESTICIDE PESTS POPULATION GROWTH PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRODUCTION COST PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INCREASES PULSES RESOURCE ALLOCATION RETURNS TO SCALE RICE RURAL DEVELOPMENT RURAL HOUSEHOLDS RURAL POVERTY SEED SEEDLINGS SEEDS SMALL FARMERS SMALL FARMS TOTAL COSTS TOTAL OUTPUT TUBERS VARIABLE INPUTS VEGETABLES VILLAGE LEVEL WAGE RATES WHEAT
spellingShingle	ACCOUNTING ADVERSE EFFECTS ADVERSE IMPACTS AGRICULTURAL BUSINESS AGRICULTURAL ECONOMICS AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTIVITY AGRICULTURAL SECTOR AGRICULTURE CENTRALLY PLANNED ECONOMIES CEREALS CHILD LABOR COST FUNCTIONS CREDIT MARKETS CROP CROP INCOME CROP PRODUCTION CROPLAND CROPS CULTIVATION DEVELOPMENT POLICY DIVERSIFICATION ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC HISTORY ECONOMIC RESEARCH ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUIPMENT EXTERNALITIES FACTOR DEMAND FACTOR MARKETS FAMILY LABOR FARM FARM HOUSEHOLDS FARM SELF-EMPLOYMENT FARM SIZE FARM TECHNOLOGY FARMERS FARMING FARMS FERTILIZER FERTILIZERS FRUITS HARVESTING HIGH WAGES HOUSEHOLD INCOME INCOME INHERITANCE INSURANCE IRRIGATION LABOR COSTS LABOR MARKET LAND ACQUISITION LAND ASSETS LAND LEASING LAND OWNERSHIP LAND PREPARATION LAND PRODUCTIVITY LAND USE PLANNING LANDHOLDINGS LIVESTOCK MAIZE MARGINAL FARMERS MARKET WAGES OILSEEDS ORCHARDS OUTPUTS PADDY PER CAPITA INCOME PEST CONTROL PESTICIDE PESTS POPULATION GROWTH PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRODUCTION COST PRODUCTION COSTS PRODUCTION FUNCTION PRODUCTION INCREASES PULSES RESOURCE ALLOCATION RETURNS TO SCALE RICE RURAL DEVELOPMENT RURAL HOUSEHOLDS RURAL POVERTY SEED SEEDLINGS SEEDS SMALL FARMERS SMALL FARMS TOTAL COSTS TOTAL OUTPUT TUBERS VARIABLE INPUTS VEGETABLES VILLAGE LEVEL WAGE RATES WHEAT Deininger, Klaus Monchuk, Daniel Nagarajan, Hari K. Singh, Sudhir K. Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India
geographic_facet	South Asia India
relation	Policy Research Working Paper;No. 7085
description	Although a large literature discusses the productivity effects of land fragmentation, measurement and potential endogeneity issues are often overlooked. This paper uses several measures of fragmentation and controls for endogeneity and crop choice by looking at inherited paddy and wheat plots to show that these issues matter empirically. While crop choice can mitigate effects, fragmentation as measured by the Simpson index increases production cost and fosters substitution of labor for machinery, especially for small and medium farmers. Greater distances between fragments have a smaller effect. Creating opportunities for market-based consolidation could be one step to limit fragmentation-induced cost increases.
format	Publications & Research
author	Deininger, Klaus Monchuk, Daniel Nagarajan, Hari K. Singh, Sudhir K.
author_facet	Deininger, Klaus Monchuk, Daniel Nagarajan, Hari K. Singh, Sudhir K.
author_sort	Deininger, Klaus
title	Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India
title_short	Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India
title_full	Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India
title_fullStr	Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India
title_full_unstemmed	Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India
title_sort	does land fragmentation increase the cost of cultivation? evidence from india
publisher	World Bank Group, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2014/11/20346301/land-fragmentation-increase-cost-cultivation-evidence-india http://hdl.handle.net/10986/20632
_version_	1764446659618537472

Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India

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