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Land Reform in NE Brazil: a stochastic frontier production efficiency evaluation

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  • Magalhaes, Marcelo Marques de
  • Souza Filho, Hildo Meirelles de
  • Sousa, Miguel Rocha de
  • Silveira, José Maria F. J. da
  • Buainain, Antonio Marcio

Abstract

The aim of this paper is to address the sources of technical and allocative inefficiency from a cross section sample of 308 beneficiaries of a market assisted land reform program, called “Cédula da Terra” from five states in Northeastern region of Brazil. In spite of some differences on governance of the “Cédula da Terra” in comparison with traditional expropriation land reform program, studies carried by Buainain et al. (2002) have shown small differences between then, regarding their social and economic characteristics. We believe that our results could be useful to identify the main problems of Brazilian land reform settlements. We estimated a potential production frontier following the methodology of Battese and Coelli (1995), Coelli et al. (1998) and applied econometric techniques to explain inefficiency. The results indicate the existence of technical and allocative inefficiency, which is identified mostly in situations where the presence of production for consumption is high. This is a result that shows how immature the agriculture activity is in most of Cédula da Terra Program settlements and the difficulty to overcome the limitations imposed by the initial condition of formation of agrarian reform, primarily in Northeastern region of Brazil.

Suggested Citation

  • Magalhaes, Marcelo Marques de & Souza Filho, Hildo Meirelles de & Sousa, Miguel Rocha de & Silveira, José Maria F. J. da & Buainain, Antonio Marcio, 2011. "Land Reform in NE Brazil: a stochastic frontier production efficiency evaluation," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 49(1), pages 1-22, March.
    • Handle: RePEc:ags:rdecag:151984
    DOI: 10.22004/ag.econ.151984
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    Cited by:

    1. de Souza Filho, Hildo Meirelles & Carrer, Marcelo José & Saes, Maria Sylvia Macchione & Gomes, Leonardo Augusto de Vasconcelos & Nicolella, Alexandre Chibebe, 2019. "Performance heterogeneity and strategic orientation: An analysis of small farmers of an agrarian reform project in Brazil," Land Use Policy, Elsevier, vol. 86(C), pages 23-30.
    2. Freitas, Carlos Otavio de & Silva, Felipe de Figueiredo & Braga, Marcelo Jose & Neves, Mateus de Carvalho Reis, 2021. "Rural extension and technical efficiency in the Brazilian agricultural sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(2), January.
    3. Freitas, Carlos Otávio & Figueiredo Silva, Felipe & Neves, Mateus C R & Braga, Marcelo J., 2018. "Can rural extension reduce the income differential in rural Brazil?," 2018 Annual Meeting, August 5-7, Washington, D.C. 274496, Agricultural and Applied Economics Association.
    4. Guilherme Berse Rodrigues Lambais & Marcelo Marques De Magalhães & José Maria Ferreira Jardim Da Silveira, 2014. "Land Reform And Technical Efficiency: Panel Data Evidence From Northeastern Brazil," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 200, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    5. Fitz, Dylan, 2018. "Evaluating the impact of market-assisted land reform in Brazil," World Development, Elsevier, vol. 103(C), pages 255-267.
    6. Freitas, C.O.D. & Silva, F.F. & Braga, M.J., 2018. "The effect of rural extension on farm technical efficiency in Brazil," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277271, International Association of Agricultural Economists.

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