Does Land Fragmentation Increase the Cost of Cultivation? Evidence from India

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.

Bibliographic Details

Main Authors:	Deininger, Klaus, Monchuk, Daniel, Nagarajan, Hari K., Singh, Sudhir K.
Format:	Publications & Research biblioteca
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014-11
Subjects:	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,
Online Access:	http://documents.worldbank.org/curated/en/2014/11/20346301/land-fragmentation-increase-cost-cultivation-evidence-india http://hdl.handle.net/10986/20632
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