TABLE 8

Farm Size–Productivity Relationship: Variation by Farm Size

YieldNet Profit (Shadow Wages)Net Profit (Village Wages)
HoldingPlotHoldingPlotHoldingPlot
Cropped area in ha (α1)−0.501***
(11.512)		−0.485***
(15.269)		−0.097***
(3.392)		−0.152***
(4.201)		−0.008
(0.248)		−0.025
(0.620)
Cropped area in ha × First tercile (γ1)0.118***
(2.983)		0.019
(0.841)		−0.050*
(1.945)		−0.007
(0.262)		−0.002
(0.056)		0.025
(0.872)
Cropped area in ha × Second tercile (γ2)0.065
(1.635)		0.043**
(2.171)		−0.029
(1.120)		0.023
(1.027)		−0.016
(0.542)		−0.009
(0.376)
Village fixed effectsYesYesYes
Household fixed effectsYesYesYes
Tests
    α1 + γ1 = 0648.14***982.65***222.11***87.86***0.750
    α1 + γ2 = 0315.54***457.28***60.81***29.94***1.721.72
Number of observations3,0607,3083,0587,2753,0607,308
R-squared0.3350.3620.1670.0770.0340.036

  • Note: Coefficients are from the specifications in columns (3) and (7) above for holding and plot levels, respectively, with only the relevant coefficients reported. Absolute value of t-statistics in parentheses.

  • ↵* Significant at 10%

  • ↵** significant at 5%

  • ↵*** significant at 1%.