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Should African rural development strategies depend on smallholder farms? : an exploration of the inverse productivity hypothesis

Author: Donald F Larson; World Bank. Development Research Group. Agriculture and Rural Development Team.
Publisher: [Washington, D.C.] : World Bank, Development Research Group, Agriculture and Rural Development Team, 2012.
Series: Policy research working papers, 6190.
Edition/Format:   eBook : Document : International government publication : EnglishView all editions and formats
Summary:
In Africa, most development strategies include efforts to improve the productivity of staple crops grown on smallholder farms. An underlying premise is that small farms are productive in the African context and that smallholders do not forgo economies of scale -- a premise supported by the often observed phenomenon that staple cereal yields decline as the scale of production increases. This paper explores a research  Read more...
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Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Donald F Larson; World Bank. Development Research Group. Agriculture and Rural Development Team.
OCLC Number: 809279525
Notes: Title from pdf title page (World Bank Web site, viewed Sept. 6, 2012).
"September 2012."
Description: 1 online resource (32 pages).
Series Title: Policy research working papers, 6190.
Responsibility: Donald F. Larson [and others].

Abstract:

In Africa, most development strategies include efforts to improve the productivity of staple crops grown on smallholder farms. An underlying premise is that small farms are productive in the African context and that smallholders do not forgo economies of scale -- a premise supported by the often observed phenomenon that staple cereal yields decline as the scale of production increases. This paper explores a research design conundrum that encourages researchers who study the relationship between productivity and scale to use surveys with a narrow geographic reach, when policy would be better served with studies based on wide and heterogeneous settings. Using a model of endogenous technology choice, the authors explore the relationship between maize yields and scale using alternative data. Since rich descriptions of the decision environments that farmers face are needed to identify the applied technologies that generate the data, improvements in the location specificity of the data should reduce the likelihood of identification errors and biased estimates. However, the analysis finds that the inverse productivity hypothesis holds up well across a broad platform of data, despite obvious shortcomings with some components. It also finds surprising consistency in the estimated scale elasticities.

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