Inverse Productivity or Inverse Efficiency? Evidence from Mexico. Issue 3 (3rd March 2016)

• Record Type: Journal Article
• Authors: Kagin, Justin; Taylor, J. Edward; Yúnez-Naude, Antonio
• Is Part Of: Journal of development studies. Volume 52:Issue 3(2016)
• Page Start: 396
• Page End: 411
• Publication Date: 2016-03-03
• Subjects: Economic development -- Periodicals; Economic history -- 1945- -- Periodicals; Developing countries -- Economic conditions -- Periodicals; Développement économique -- Périodiques; Histoire économique -- 1945- -- Périodiques; Pays en voie de développement -- Conditions économiques -- Périodiques; 338.91
• DOI: 10.1080/00220388.2015.1041515
• Languages: English
• ISSNs: 0022-0388

Abstract

Abstract: Using a unique panel data set from rural Mexico, we find strong evidence of a negative relationship between farm size and both productivity and technical efficiency: large farms not only have a lower value of output per hectare than small farms, they also produce further from the efficiency frontier. Our findings suggest that, in spite of the ongoing transformation of agricultural supply chains and economists' recommendations for small farmers to exit crop production, there may be sustained advantages for smallholder farms. Our analysis offers new insights into inverse-farm size relationship, the productivity–efficiency relationship, and the use of stochastic frontier techniques.