Subsistence Farming and Factor Misallocation

dc.creatorMorando, Bruno
dc.date2024-03-27T16:18:52Z
dc.date2024-03-27T16:18:52Z
dc.date2023-07-06
dc.date.accessioned2026-07-01T00:33:12Z
dc.descriptionThis paper presents a model where misallocation in the agricultural factors of production is caused by transportation costs to and from local markets, which result in an inefficiently large share of inputs operated by less productive subsistence farmers. The model derives some testable predictions which are verified in the empirical analysis, based on a representative census of Ugandan farms. Specifically, subsistence farmers operate inefficiently high shares of land and capital, and the efficiency losses are more severe in areas where subsistence farming is more widespread, due to lower connectivity with local markets. Conversely, there is no relationship between the level of misallocation and credit access and/or land-market activity. These findings suggest that transportation costs play a key role in determining the efficiency of agricultural input distribution and that land-market liberalization is a necessary but not sufficient condition to tackle misallocation.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/099537312122343597/IDU0b83874300c94f043c20a1290e120fccaf5d9
dc.identifierThe World Bank Economic Review
dc.identifier0258-6770 (print)
dc.identifier1564-698X (online)
dc.identifierhttps://hdl.handle.net/10986/41294
dc.identifier10.1596/41294
dc.identifier.urihttp://hdl.handle.net/123456789/405948
dc.languageEnglish
dc.languageen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relationWorld Bank Economic Review
dc.relationWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rightshttps://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.rightsWorld Bank
dc.subjectMISALLOCATION
dc.subjectPRODUCTIVITY
dc.subjectAGRICULTURE
dc.subjectUGANDA
dc.titleSubsistence Farming and Factor Misallocation
dc.titleEvidence from Ugandan Agriculture
dc.typeJournal Article

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