Too Small to Be Beautiful? : The Farm Size and Productivity Relationship in Bangladesh
This paper examines the agricultural productivity–farm size relationship in the context of Bangladesh. Features of Bangladesh's agriculture help overcome several limitations in testing the inverse farm size–productivity relationship in other d...
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okr-10986-295672021-06-08T14:42:45Z Too Small to Be Beautiful? : The Farm Size and Productivity Relationship in Bangladesh Gautam, Madhur Ahmed, Mansur RURAL LIVELIHOOD TOTAL FACTOR PRODUCTIVITY FARM SIZE POVERTY AGRICULTURAL PRODUCTIVITY TECHNICAL CHANGE STOCHASTIC FRONTIER MODEL This paper examines the agricultural productivity–farm size relationship in the context of Bangladesh. Features of Bangladesh's agriculture help overcome several limitations in testing the inverse farm size–productivity relationship in other developing country settings. A stochastic production frontier model is applied using data from three rounds of a household panel survey to estimate simultaneously the production frontier and the technical inefficiency functions. The “correlated random effects” approach is used to control for unobserved heterogeneous household effects. Methodologically, the results suggest that the stochastic production frontier models that ignore the inefficiency function are likely mis-specified, and may result in misleading conclusions on the farm size–productivity relationship. Empirically, the findings confirm that the farm size and productivity relationship is negative, but with the inverse relationship diminishing over time. Total factor productivity growth, driven by technical change, is found to have been robust across the sample. Across farm size groups, the relatively larger farmers experienced faster technical change, which helped them to catch up and narrow the productivity gap with the smaller farmers. 2018-03-30T19:40:24Z 2018-03-30T19:40:24Z 2018-03 Working Paper http://documents.worldbank.org/curated/en/925511522248076351/Too-small-to-be-beautiful-the-farm-size-and-productivity-relationship-in-Bangladesh http://hdl.handle.net/10986/29567 English Policy Research Working Paper;No. 8387 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Bangladesh |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English |
topic |
RURAL LIVELIHOOD TOTAL FACTOR PRODUCTIVITY FARM SIZE POVERTY AGRICULTURAL PRODUCTIVITY TECHNICAL CHANGE STOCHASTIC FRONTIER MODEL |
spellingShingle |
RURAL LIVELIHOOD TOTAL FACTOR PRODUCTIVITY FARM SIZE POVERTY AGRICULTURAL PRODUCTIVITY TECHNICAL CHANGE STOCHASTIC FRONTIER MODEL Gautam, Madhur Ahmed, Mansur Too Small to Be Beautiful? : The Farm Size and Productivity Relationship in Bangladesh |
geographic_facet |
South Asia Bangladesh |
relation |
Policy Research Working Paper;No. 8387 |
description |
This paper examines the agricultural
productivity–farm size relationship in the context of
Bangladesh. Features of Bangladesh's agriculture help
overcome several limitations in testing the inverse farm
size–productivity relationship in other developing country
settings. A stochastic production frontier model is applied
using data from three rounds of a household panel survey to
estimate simultaneously the production frontier and the
technical inefficiency functions. The “correlated random
effects” approach is used to control for unobserved
heterogeneous household effects. Methodologically, the
results suggest that the stochastic production frontier
models that ignore the inefficiency function are likely
mis-specified, and may result in misleading conclusions on
the farm size–productivity relationship. Empirically, the
findings confirm that the farm size and productivity
relationship is negative, but with the inverse relationship
diminishing over time. Total factor productivity growth,
driven by technical change, is found to have been robust
across the sample. Across farm size groups, the relatively
larger farmers experienced faster technical change, which
helped them to catch up and narrow the productivity gap with
the smaller farmers. |
format |
Working Paper |
author |
Gautam, Madhur Ahmed, Mansur |
author_facet |
Gautam, Madhur Ahmed, Mansur |
author_sort |
Gautam, Madhur |
title |
Too Small to Be Beautiful? : The Farm Size and Productivity Relationship in Bangladesh |
title_short |
Too Small to Be Beautiful? : The Farm Size and Productivity Relationship in Bangladesh |
title_full |
Too Small to Be Beautiful? : The Farm Size and Productivity Relationship in Bangladesh |
title_fullStr |
Too Small to Be Beautiful? : The Farm Size and Productivity Relationship in Bangladesh |
title_full_unstemmed |
Too Small to Be Beautiful? : The Farm Size and Productivity Relationship in Bangladesh |
title_sort |
too small to be beautiful? : the farm size and productivity relationship in bangladesh |
publisher |
World Bank, Washington, DC |
publishDate |
2018 |
url |
http://documents.worldbank.org/curated/en/925511522248076351/Too-small-to-be-beautiful-the-farm-size-and-productivity-relationship-in-Bangladesh http://hdl.handle.net/10986/29567 |
_version_ |
1764469735669366784 |