EFFECT OF FARM SIZE ON FARM PRODUCTIVITY: EMPIRICAL EVIDENCES FROM INDIA
Anupama GV, Thomas Falk
ICRISAT, India
Our study provides evidence on land tenure related issues in India. We use the Village Dynamics in South Asia (VDSA) panel dataset for the years 2010 to 2015 covering 1129 households in 9 states of India. We specifically test two hypotheses: 1) plot size is positively related to farm productivity; 2) owner operated lands have higher farm productivity. We calculate Hierarchical Mixed Effects Models in order to take the nested structure of the data into account. Transformation parameters are included in order to accommodate non-linear relationships between our variables. Our results confirm a positive relation between the average plot size and the agricultural productivity from cultivation. They provide supporting arguments for key aspects of ongoing land reform processes in India. In particular the land consolidation and ceiling policies should support an increase in agricultural productivity.
Event: Land Governance in an Interconnected World_Annual World Bank Conference on Land and Poverty_2018
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