Farm size and productivity in Nicaragua: Parametric and nonparametric analyses for panel data
DOI:
https://doi.org/10.7201/earn.2022.01.02Keywords:
Inverse relationship hypothesis, parametric and nonparametric models, farm productivityAbstract
This paper examines the inverse relationship hypothesis (IR-H) between farm size and agricultural productivity in Nicaragua using parametric and nonparametric methods designed specifically for panel data. The data employed are from the World Bank’s Living Standards Measurement Study for the years 1998, 2001 and 2005. The analysis reveals strong support for the IR-H based on a number of alternative parametric specifications. The results from the nonparametric models lend partial support to the IR-H,
and such support is weaker than what is obtained from the parametric models, particularly among medium and large landholders.
Downloads
References
Almeida, A.N. & Bravo-Ureta, B.E. (2019). "Agricultural productivity, shadow wages and off-farm labor decisions in Nicaragua". Economic Systems, 43, 99-110. https://doi.org/10.1016/j.ecosys.2018.09.002
Aitchison, J. & Aitken, C.G.G. (1976). "Multivariate binary discrimination by the kernel method". Biometrika, 63(3), 413-420. https://doi.org/10.2307/2335719
Ali, D.A. & Deininger, K. (2015). "Is there a farm size-productivity relationship in African agriculture? Evidence from Rwanda". Land Economics, 91(2), 317-343. Retrieved from: https://www.jstor.org/stable/24773531 https://doi.org/10.3368/le.91.2.317
Assunção, J.J. & Braido, L.H.B. (2007). "Testing household-specific explanations for the inverse productivity relationship". American Journal of Agricultural Economics, 89(4), 980-990. https://doi.org/10.1111/j.1467-8276.2007.01032.x
Barrett, C.R. (1996). "On price risk and the inverse farm size-productivity relationship". Journal of Development Economics, 51(2), 193-215. https://doi.org/10.1016/S0304-3878(96)00412-9
Barrett, C.R., Bellemare, M.R. & Hou, J.Y. (2010). "Reconsidering conventional explanations of the inverse productivity-size relationship". World Development, 38(1), 88-97. https://doi.org/10.1016/j.worlddev.2009.06.002
Battese, G.E. (1997). "A note on the estimation of Cobb-Douglas production function when some explanatory variables when some explanatory variables have zero values". Journal of Agricultural Economics, 48(2), 250-252. https://doi.org/10.1111/j.1477-9552.1997.tb01149.x
Benjamin, D. (1995). "Can unobserved land quality explain the inverse productivity relationship?" Journal of Development Economics, 46(1), 51-84. https://doi.org/10.1016/0304-3878(94)00048-H
Berry, R.A. & Cline, W.R. (1979). Agrarian Structure and Productivity in Developing Countries. Baltimore: The John Hopkins University Press.
Binswanger, H.P., Deininger, K. & Feder, G. (1995). "Power, distortions, revolt and reforming agricultural land relations". In Behrman, J. & T.N. Srinivasan (Eds.): Handbook of Development Economics, Volume 3 (pp. 2659-2772). North Holland, Amsterdam: ScienceDirect. https://doi.org/10.1016/S1573-4471(95)30019-8
Blundell, R & Duncan, A. (1998). "Kernel regression in empirical economics". Journal of Human Resources, 13(1), 435-461. https://doi.org/10.2307/146315
Boucher, S.R., Barham, B.L. & Carter, M.R. (2005). "The impact of marketfriendly reforms on credit and land markets in Honduras and Nicaragua". World Development, 33(1), 107-128. https://doi.org/10.1016/j.worlddev.2004.09.004
Carletto, C., Savastano, S. & Zezza, A. (2013). "Fact or artifact: The impact of measurement errors on the farm size-productivity relationship". Journal of Development Economics, 103, 254-261. https://doi.org/10.1016/j.jdeveco.2013.03.004
Henderson, D.J. & Parmeter, C.F. (2015). Applied Nonparametric Econometrics. Cambridge: Cambridge University Press. https://doi.org/10.1017/CBO9780511845765
Henderson, D. & Simar, L. (2005). "A fully nonparametric stochastic frontier model for panel data." STAT Discussion Paper 052. Retrieved from: https://dial.uclouvain.be/pr/boreal/object/boreal:122235
Holden, S. & Fisher, M. (2013). "Can area measurement error explain the inverse farm size productivity relationship?" Centre for Land Tenure Working Paper 12/13. Retrieved from: https://www.nmbu.no/download/file/fid/40190
Horowitz, J.L. & Härdle, W. (1994). "Testing a parametric model against a semiparametric alternative", Econometric Theory, 10(5), 821-48. Retrieved from: https://www.jstor.org/stable/3532855 https://doi.org/10.1017/S0266466600008872
International Fund for Agricultural Development (IFAD). (2017). "Investing in rural people in Nicaragua". Technical Report. Rome: IFAD. Retrieved from: https://www.ifad.org/en/web/knowledge/-/publication/investing-in-rural-people-innicaragua
Julien, J.C., Bravo-Ureta, B.E. & Rada, N.E. (2019). "Assessing farm performance by size in Malawi, Tanzania, and Uganda". Food Policy, 84, 153-164. https://doi.org/10.1016/j.foodpol.2018.03.016
Julien, J.C., Bravo-Ureta, B.E. & Rada, N.E. (2021). "Productive efficiency and farm size in East Africa". Agrekon, 60, 209-226. https://doi.org/10.1080/03031853.2021.1960176
Kagin, J., Taylor, E.J. & Yúnes-Naude, A. (2016). "Inverse productivity or inverse efficiency? Evidence from Mexico". Journal of Development Studies, 52(3), 396-411. https://doi.org/10.1080/00220388.2015.1041515
Li, Q. & Racine, J.S. (2004). "Cross-validated local linear nonparametric regression". Statistica Sinica, 14, 485-512. Retrieved from: https://www.jstor.org/stable/24307205
Li, Q. & Racine, J.S. (2007). Nonparametric Econometrics: Theory and Practice. Princeton: Princeton University Press.
Lipton, M. (2009). Land Reform in Developing Countries: Property Rights and Property Wrongs. New York: Routledge. https://doi.org/10.4324/9780203876251
Olavarría, J.A., Bravo-Ureta, B.E. & Cocchi, H. (2004). "Productividad total de los factores en la agricultura chilena: 1961-1996". Economía Agraria y Recursos Naturales, 4(8), 121-132. https://doi.org/10.7201/earn.2004.08.07
Oseni, G. & Winters, P. (2009). "Rural nonfarm activities and agricultural crop production in Nigeria". Agricultural Economics, 40(2), 189-201. https://doi.org/10.1111/j.1574-0862.2009.00369.x
Piccioni, N.B. (2015). Agriculture in Nicaragua: Performance, Challenges, and Options. Washington D.C.: The World Bank. Retrieved from: https://openknowledge.worldbank.org/handle/10986/25978 https://doi.org/10.1596/25978
Racine, J.S. & Li, Q. (2004). "Nonparametric estimation of regression functions with both categorical and continuous data". Journal of Econometrics, 119(1), 99-130. https://doi.org/10.1016/S0304-4076(03)00157-X
Rada, N. & Fuglie, K.O. (2019). "New perspectives on farm size and productivity". Food Policy, 84, 147-152. https://doi.org/10.1016/j.foodpol.2018.03.015
Rada, N., Helfand, S. & Magalhães, M. (2019). "Agricultural productivity growth in Brazil, large and small farmers excel". Food Policy, 84, 176-185. https://doi.org/10.1016/j.foodpol.2018.03.014
Sen, A. (1966). "Peasants and dualism with or without surplus labor". Journal of Political Economy, 74(5), 425-450. Retrieved from: https://www.jstor.org/stable/1829592 https://doi.org/10.1086/259198
Sibande, L., Bailey, A. & Davidova, S. (2017). "The impact of farm input subsidies on maize marketing in Malawi". Food Policy, 69, 190-206. https://doi.org/10.1016/j.foodpol.2017.04.001
Ullah, A. (1985). "Specification analysis and economics models". Journal of Quantitative Economics, 2, 187-209.
Verschelde, M., D'Haise, M., Rayp, G. & Vandamme, E. (2013). "Challenging small-scale farming: A nonparametric analysis of the (inverse) relationship between farm productivity and farm size in Burundi". Journal of Agricultural Economics, 64(2), 319-342. https://doi.org/10.1111/j.1477-9552.2012.00373.x
Wang, M.C. & van Ryzin, J. (1981). "A class of smooth estimators for discrete distributions". Biometrika, 68(1), 301-309. https://doi.org/10.2307/2335831
World Bank. (1998). Nicaragua: Living standards measurement study 1998. Basic Information Document. Washington D.C.: The World Bank.
World Bank. (2002). Nicaragua: Living standards measurement study 2001. Ficha Técnica. Washington D.C.: The World Bank.
World Bank. (2006). Nicaragua: Encuesta Nacional De Hogares Sobre Medición De Nivel De Vida 2006. Informe de Metodología y Operaciones. Washington D.C.: The World Bank.
World Bank. (2020). World Bank Development Indicators. Washington D.C.: World Bank. Retrieved from: http://data.worldbank.org/data-catalog/worlddevelopment-indicators
Yatchew, A. (2009). Semiparametric regression for the applied econometrician. Cambridge: Cambridge University Press.
Zeeshan, G.M. & Giri, A.K. (2019). "The effects of non-farm enterprises on farm households' income and consumption expenditure in Rural India". Economía Agraria y Recursos Naturales, 19(1), 195-222. https://doi.org/10.7201/earn.2019.01.10
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Alexandre Nunes Almeida, Boris E Bravo-Ureta
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
This journal is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License