Examining the relationship between farm size and productive efficiency: a Bayesian directional distance function approach
Achieving sustainable food security and increased farm income will depend on how efficient production systems are in converting available inputs to produce outputs. Using data from Malawi, we estimate a Bayesian directional technology distance function to examine the relationship between farm size a...
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Published in | Agricultural economics Vol. 50; no. 2; pp. 237 - 246 |
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Main Authors | , , , , |
Format | Journal Article |
Language | English |
Published |
Malden
Wiley Subscription Services, Inc
01.03.2019
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Subjects | |
Online Access | Get full text |
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Summary: | Achieving sustainable food security and increased farm income will depend on how efficient production systems are in converting available inputs to produce outputs. Using data from Malawi, we estimate a Bayesian directional technology distance function to examine the relationship between farm size and technical efficiency. Our results support the existence of an inverse relationship between farm size and productive efficiency, where small farms are more efficient than large farms. On average, farms exhibit inefficiency levels of 60%, suggesting that productivity could be improved substantially. Improving productive efficiency and food security will require farms to operate in ways where the size of cultivated area is matched by nonland production inputs such as labor, fertilizer, and improved seeds. The results highlight the need for policies that could incentivize farmers to adopt productivity‐enhancing technologies and, where possible, to allocate excess land to lease markets. |
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Bibliography: | Data Appendix Available Online A data appendix to replicate main results is available in the online version of this article. Please note: Wiley‐Blackwell is not responsible for the content or functionality of any supporting information supplied by the authors. Any queries (other than missing material) should be directed to the corresponding author for the article. |
ISSN: | 0169-5150 1574-0862 |
DOI: | 10.1111/agec.12480 |