Inverse Relationship between Productivity and Farm Size: The Case of China
Zhuo (Adam) Chen
Centers for Disease Control and Prevention - Office of Workforce and Career Development
Wallace E. Huffman
Iowa State University - Department of Economics; University of Kiel - Department of Food Economics and Consumption Studies
Stanford University - Freeman Spogli Institute of International Studies
Contemporary Economic Policy, Vol. 29, Issue 4, pp. 580-592, 2011
In developing agricultures, past research has suggested an inverse relationship between farm productivity and size. The raw data from China show such an inverse relationship. However, the inverse relationship disappears after we instrument for land area using the fact that one of the objectives of the land allocation process in rural China is to ensure local households to meet their nutritional needs. The empirical inverse relationship is likely due to the failure to account for the unobserved land quality that is unevenly distributed across the farm size continuum, rather than inherent to China's agriculture.
Number of Pages in PDF File: 13
JEL Classification: O13, Q12, Q15Accepted Paper Series
Date posted: September 21, 2011
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