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Is there a farm-size productivity relationship in African agriculture? : evidence from Rwanda

Author: Daniel Ayalew Ali; Klaus W Deininger; World Bank. Development Research Group. Agriculture and Rural Development Team.
Publisher: [Washington, D.C.] : World Bank, [2014]
Series: Policy research working papers, 6770.
Edition/Format:   eBook : Document : International government publication : EnglishView all editions and formats
Summary:
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.  Read more...
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Details

Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Daniel Ayalew Ali; Klaus W Deininger; World Bank. Development Research Group. Agriculture and Rural Development Team.
OCLC Number: 870687572
Notes: "February 2014."
World Bank, Development Research Group, Agriculture and Rural Development Team.
Description: 1 online resource (46 pages) : illustrations (some color), map.
Series Title: Policy research working papers, 6770.
Responsibility: Daniel Ayalew Ali and Klaus Deininger.

Abstract:

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.

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