Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India
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World Bank Group, Washington, DC
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Although a large literature discusses
the productivity effects of land fragmentation, measurement
and potential endogeneity issues are often overlooked. This
paper uses several measures of fragmentation and controls
for endogeneity and crop choice by looking at inherited
paddy and wheat plots to show that these issues matter
empirically. While crop choice can mitigate effects,
fragmentation as measured by the Simpson index increases
production cost and fosters substitution of labor for
machinery, especially for small and medium farmers. Greater
distances between fragments have a smaller effect. Creating
opportunities for market-based consolidation could be one
step to limit fragmentation-induced cost increases.
Palabras clave
ACCOUNTING, ADVERSE EFFECTS, ADVERSE IMPACTS, AGRICULTURAL BUSINESS, AGRICULTURAL ECONOMICS, AGRICULTURAL PRODUCTION, AGRICULTURAL PRODUCTIVITY, AGRICULTURAL SECTOR, AGRICULTURE, CENTRALLY PLANNED ECONOMIES, CEREALS, CHILD LABOR, COST FUNCTIONS, CREDIT MARKETS, CROP, CROP INCOME, CROP PRODUCTION, CROPLAND, CROPS, CULTIVATION, DEVELOPMENT POLICY, DIVERSIFICATION, ECONOMETRICS, ECONOMIC ANALYSIS, ECONOMIC HISTORY, ECONOMIC RESEARCH, ELASTICITY, ELASTICITY OF SUBSTITUTION, EMPLOYMENT, EQUIPMENT, EXTERNALITIES, FACTOR DEMAND, FACTOR MARKETS, FAMILY LABOR, FARM, FARM HOUSEHOLDS, FARM SELF-EMPLOYMENT, FARM SIZE, FARM TECHNOLOGY, FARMERS, FARMING, FARMS, FERTILIZER, FERTILIZERS, FRUITS, HARVESTING, HIGH WAGES, HOUSEHOLD INCOME, INCOME, INHERITANCE, INSURANCE, IRRIGATION, LABOR COSTS, LABOR MARKET, LAND ACQUISITION, LAND ASSETS, LAND LEASING, LAND OWNERSHIP, LAND PREPARATION, LAND PRODUCTIVITY, LAND USE PLANNING, LANDHOLDINGS, LIVESTOCK, MAIZE, MARGINAL FARMERS, MARKET WAGES, OILSEEDS, ORCHARDS, OUTPUTS, PADDY, PER CAPITA INCOME, PEST CONTROL, PESTICIDE, PESTS, POPULATION GROWTH, PRICE ELASTICITY, PRICE ELASTICITY OF DEMAND, PRODUCTION COST, PRODUCTION COSTS, PRODUCTION FUNCTION, PRODUCTION INCREASES, PULSES, RESOURCE ALLOCATION, RETURNS TO SCALE, RICE, RURAL DEVELOPMENT, RURAL HOUSEHOLDS, RURAL POVERTY, SEED, SEEDLINGS, SEEDS, SMALL FARMERS, SMALL FARMS, TOTAL COSTS, TOTAL OUTPUT, TUBERS, VARIABLE INPUTS, VEGETABLES, VILLAGE LEVEL, WAGE RATES, WHEAT