Farm Size–Productivity Relationship: Net Profit Approach Using Shadow Wages
| Holding Level | Plot Level | ||||||
|---|---|---|---|---|---|---|---|
| Cropped area (ha) | −0.155*** (20.133) | −0.140*** (15.091) | −0.149*** (15.122) | −0.197*** (22.974) | −0.174*** (16.618) | −0.180*** (16.905) | −0.161*** (10.457) |
| Land value/ha ($) | 0.097*** (8.963) | 0.093*** (8.535) | 0.102*** (8.443) | 0.093*** (7.558) | 0.082*** (4.200) | ||
| Dist. from home (minutes) | 0.000 (0.946) | 0.000 (0.904) | −0.002*** (3.510) | −0.002** (2.328) | −0.000 (0.463) | ||
| Years possessed | 0.000 (0.568) | 0.002 (1.617) | 0.001 (0.833) | 0.002** (2.095) | 0.001 (0.529) | ||
| Plot in wetland | 0.004 (0.070) | −0.013 (0.225) | −0.006 (0.110) | −0.021 (0.417) | −0.016 (0.241) | ||
| Irrigated land | −0.053 (0.972) | −0.036 (0.665) | −0.028 (0.488) | −0.011 (0.197) | 0.008 (0.088) | ||
| Flat land | −0.046 (1.360) | −0.046 (1.354) | −0.053 (1.539) | −0.050 (1.470) | 0.029 (0.587) | ||
| Gently sloped land | −0.032 (1.088) | −0.032 (1.104) | −0.023 (0.714) | −0.027 (0.856) | 0.022 (0.454) | ||
| Plot in valley | 0.108 (1.083) | 0.118 (1.191) | 0.004 (0.052) | 0.007 (0.095) | −0.002 (0.026) | ||
| Sandy soil | −0.027 (0.656) | −0.019 (0.462) | −0.009 (0.203) | −0.002 (0.043) | 0.014 (0.215) | ||
| Loam soil | 0.040 (1.180) | 0.041 (1.219) | 0.097*** (2.632) | 0.091** (2.483) | 0.085 (1.492) | ||
| Light clay soil | 0.068 (1.547) | 0.070 (1.597) | 0.067 (1.485) | 0.064 (1.431) | 0.029 (0.428) | ||
| Heavy soil | −0.047 (0.590) | −0.042 (0.533) | −0.047 (0.627) | −0.029 (0.397) | 0.001 (0.011) | ||
| Gravelly soil | −0.013 (0.298) | −0.008 (0.198) | 0.006 (0.128) | 0.013 (0.295) | 0.019 (0.283) | ||
| Crop shock | −0.090*** (3.682) | −0.085*** (3.467) | −0.126*** (4.567) | −0.108*** (3.913) | −0.135*** (3.194) | ||
| Grains | −0.397** (2.375) | −0.785*** (6.111) | −0.838*** (5.415) | ||||
| Tubers | −0.242 (1.423) | −0.637*** (4.917) | −0.776*** (4.984) | ||||
| Tree crops | −0.196 (1.150) | −0.423*** (3.203) | −0.439*** (2.752) | ||||
| Age of head | −0.001 (1.160) | −0.001 (0.805) | |||||
| Female head | −0.019 (0.713) | −0.026 (0.776) | |||||
| Primary school completed | 0.021 (0.855) | 0.016 (0.528) | |||||
| Secondary education | 0.015 (0.328) | 0.017 (0.314) | |||||
| Number of members ≤ 14 | 0.007 (0.898) | 0.015 (1.575) | |||||
| Number of members 15–35 | −0.007 (0.719) | −0.014 (1.251) | |||||
| Number of members 35–60 | 0.026 (1.542) | −0.009 (0.473) | |||||
| Constant | 0.099*** (5.758) | −0.702*** (7.371) | −0.384* (1.918) | −0.105*** (3.774) | −0.905*** (8.597) | −0.177 (0.992) | −0.025 (0.109) |
| Village fixed effects | No | Yes | Yes | No | Yes | Yes | No |
| Household fixed effects | No | No | No | Yes | |||
| Profit elasticity of land | −0.409*** (17.768) | −0.368*** (14.063) | −0.391*** (14.098) | −0.420*** (19.821) | −0.371*** (15.339) | −0.385*** (15.581) | −0.345*** (10.142) |
| Number of observations | 3,065 | 3,060 | 3,058 | 7,428 | 7,275 | 7,272 | 7,275 |
| R-squared | 0.117 | 0.153 | 0.166 | 0.066 | 0.082 | 0.098 | 0.076 |
Note: Regressions are for owned plots only (see separate online appendix for results with all plots: http://le.uwpress.org). Profit elasticity of land is calculated at mean values. Absolute value of t-statistics in parentheses.
* Significant at 10%
↵** significant at 5%
↵*** significant at 1%.