Farm Size–Productivity Relationship: Net Profit Approach Using Village Market Wages
| Holding Level | Plot Level | ||||||
|---|---|---|---|---|---|---|---|
| Cropped area (ha) | −0.017* (1.936) | −0.009 (0.882) | −0.010 (0.875) | 0.015 (1.522) | 0.035*** (2.969) | 0.023* (1.897) | 0.007 (0.426) |
| Land value/ha ($) | 0.053*** (4.197) | 0.051*** (3.987) | 0.070*** (5.145) | 0.052*** (3.822) | 0.030 (1.417) | ||
| Distance from home (minutes) | −0.000 (1.503) | −0.000 (1.280) | −0.003*** (4.105) | −0.002** (2.396) | −0.002** (2.197) | ||
| Years possessed | 0.000 (0.419) | 0.003** (2.392) | −0.001 (1.023) | 0.001 (0.786) | −0.002 (0.806) | ||
| Plot in wetland | −0.057 (0.857) | −0.060 (0.898) | −0.024 (0.432) | −0.019 (0.329) | −0.000 (0.002) | ||
| Irrigated land | −0.056 (0.877) | −0.051 (0.795) | −0.052 (0.817) | −0.041 (0.643) | −0.093 (0.942) | ||
| Flat land | −0.058 (1.471) | −0.059 (1.488) | −0.040 (1.044) | −0.039 (1.021) | 0.105* (1.914) | ||
| Gently sloped land | −0.067* (1.945) | −0.065* (1.898) | −0.049 (1.393) | −0.052 (1.479) | 0.077 (1.467) | ||
| Plot in valley | 0.176 (1.534) | 0.194* (1.696) | −0.097 (1.177) | −0.062 (0.759) | 0.003 (0.029) | ||
| Sandy soil | 0.032 (0.664) | 0.031 (0.640) | 0.029 (0.594) | 0.036 (0.725) | 0.024 (0.333) | ||
| Loam soil | 0.100** (2.529) | 0.088** (2.230) | 0.152*** (3.698) | 0.140*** (3.423) | 0.056 (0.900) | ||
| Light clay soil | 0.136*** (2.657) | 0.128** (2.514) | 0.111** (2.204) | 0.105** (2.103) | 0.019 (0.254) | ||
| Heavy soil | −0.119 (1.293) | −0.111 (1.212) | −0.110 (1.314) | −0.087 (1.052) | −0.014 (0.124) | ||
| Gravelly soil | 0.038 (0.772) | 0.035 (0.708) | 0.076 (1.483) | 0.076 (1.497) | 0.014 (0.184) | ||
| Crop shock | −0.098*** (3.420) | −0.095*** (3.337) | −0.187*** (6.090) | −0.179*** (5.812) | −0.134*** (2.899) | ||
| Grains | −0.253 (1.302) | −0.476*** (3.317) | −0.511*** (3.013) | ||||
| Tubers | −0.274 (1.387) | −0.569*** (3.928) | −0.688*** (4.037) | ||||
| Tree crops | −0.045 (0.229) | −0.138 (0.934) | −0.166 (0.948) | ||||
| Age of head | −0.002 (1.287) | −0.001 (0.641) | |||||
| Female head | −0.031 (0.990) | −0.021 (0.544) | |||||
| Primary school completed | 0.046* (1.656) | 0.055* (1.655) | |||||
| Secondary education | 0.066 (1.248) | 0.106* (1.757) | |||||
| Number of members ≤ 14 | −0.007 (0.745) | 0.007 (0.686) | |||||
| Number of members 15–35 | −0.007 (0.591) | −0.013 (1.044) | |||||
| Number of members 35–60 | −0.011 (0.586) | −0.031 (1.405) | |||||
| Number of members ≥ 60 | −0.055 (1.470) | −0.032 (0.730) | |||||
| Constant | 0.094*** (4.674) | −0.338*** (3.055) | −0.060 (0.260) | 0.176*** (5.635) | −0.320*** (2.718) | 0.220 (1.106) | 0.389 (1.543) |
| Village fixed effects | No | Yes | Yes | No | Yes | Yes | No |
| Household fixed effects | No | No | No | Yes | |||
| Number of observations | 3,080 | 3,062 | 3,060 | 7,477 | 7,308 | 7,305 | 7,308 |
| R-squared | 0.001 | 0.022 | 0.034 | 0.000 | 0.016 | 0.031 | 0.034 |
↵Note: Regressions are for owned plots only (see separate online appendix for results with all plots: http://le.uwpress.org). Absolute value of t-statistics in parentheses.
↵* Significant at 10%
↵** significant at 5%
↵*** significant at 1%.