Inverse relationship between productivity and farm size: The case of China

Zhuo Chen, Wallace E. Huffman, Scott Rozelle

Research output: Journal PublicationArticlepeer-review

61 Citations (Scopus)

Abstract

In developing agricultures, past research has suggested an inverse relationship between farm productivity and size. The raw data from China show such an inverse relationship. However, the inverse relationship disappears after we instrument for land area using the fact that one of the objectives of the land allocation process in rural China is to ensure local households to meet their nutritional needs. The empirical inverse relationship is likely due to the failure to account for the unobserved land quality that is unevenly distributed across the farm size continuum, rather than inherent to China's agriculture.

Original languageEnglish
Pages (from-to)580-592
Number of pages13
JournalContemporary Economic Policy
Volume29
Issue number4
DOIs
Publication statusPublished - Oct 2011
Externally publishedYes

ASJC Scopus subject areas

  • Business, Management and Accounting (all)
  • Economics and Econometrics
  • Public Administration

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