Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India. Issue 1 (2nd January 2017)

• Record Type: Journal Article
• Authors: Deininger, Klaus; Monchuk, Daniel; Nagarajan, Hari K; Singh, Sudhir K
• Is Part Of: Journal of development studies. Volume 53:Issue 1(2017)
• Page Start: 82
• Page End: 98
• Publication Date: 2017-01-02
• 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: 10.1080/00220388.2016.1166210
• Languages: English
• ISSNs: 0022-0388

Abstract

Abstract: To appreciate overall impacts of fragmentation, underlying channels, and potential heterogeneity by holding size, we distinguish average fragment size and mean inter-fragment distance as two aspects of this phenomenon. Estimating a cost function with associated input demand equations on a large nationally representative Indian survey, robust to endogeneity, suggests that fragmentation's main impact is to reduce mean plot size below the threshold for mechanisation. Higher inter-fragment distances increase costs for larger holdings, but by a much smaller magnitude. Implications as to when programmes to consolidate holdings may make sense and ways to ensure their sustainability are discussed.