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Small is Beautiful: Empirical Evidence of an Inverse Relationship between Farm Size and Productive Efficiency in Small-Holder Cassava Production in Ideato North LGA of Imo State

Author

Listed:
  • Okoye, B.C
  • Agbaeze, C.C
  • Asumugha, G.N
  • Aniedu, O.C
  • Mbanaso, E.N.A

Abstract

This study examined the relationship between farm size and technical efficiency in small holder cassava production in Ideato LGA of Imo state using data from a 2008 farm-level survey of 90 rural households. The study showed a strong inverse relationship between farm size and technical efficiency. Smaller farms are found to be more technically efficient, than larger farms. These results favour land redistribution policies targeted towards giving lands to the small-holder farmers. Policies of de-emphasizing cassava production in the estate sector while encouraging it in smallholdings will foster equity and efficiency.

Suggested Citation

  • Okoye, B.C & Agbaeze, C.C & Asumugha, G.N & Aniedu, O.C & Mbanaso, E.N.A, 2009. "Small is Beautiful: Empirical Evidence of an Inverse Relationship between Farm Size and Productive Efficiency in Small-Holder Cassava Production in Ideato North LGA of Imo State," MPRA Paper 17418, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:17418
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    References listed on IDEAS

    as
    1. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
    2. Thomas Masterson, 2007. "Productivity, Technical Efficiency, and Farm Size in Paraguayan Agriculture," Economics Working Paper Archive wp_490, Levy Economics Institute.
    3. Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
    4. Fatma Gul Unal, 2008. "Small Is Beautiful: Evidence of an Inverse Relationship between Farm Size and Yield in Turkey," Economics Working Paper Archive wp_551, Levy Economics Institute.
    5. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Farm Size; Productivity and Technical Efficiency;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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