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Changing Relationship between Farm Size and Productivity and Its Implications for Philippine Agriculture

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  • Keijiro Otsuka

    (Graduate School of Economics, Kobe University
    Graduate School of Economics, Kobe University)

Abstract

No controversy in the history of agricultural economics is more perennial than the relationship between farm size and productivity. While the dominant view has been the inverse relationship (IR), particularly when the productivity is measured by gross value of output or physical yield per hectare, several studies found the positive and U-shaped relationships between farm size and productivity. Furthermore, there is evidence that IR has been weakened, particularly in rapidly-growing countries in Asia. This study's primary purpose is to identify causes for the different and changing relationships between farm size and productivity based on a literature review. The second purpose of this study is to review farm size changes over time among selected Asian countries to examine how farm size changes are related to the changing farm size-productivity relationship or the changing advantage of small vs. large farms. The third purpose is to draw policy implications of the changing farm size-productivity relationships for the future of Philippine agriculture.

Suggested Citation

  • Keijiro Otsuka, 2021. "Changing Relationship between Farm Size and Productivity and Its Implications for Philippine Agriculture," Discussion Papers 2102, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:2102
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2021/2102.pdf
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