Fact or Artefact : The Impact of Measurement Errors on the Farm Size - Productivity Relationship

Abstract

This paper revisits the role of land measurement error in the inverse farm size and productivity relationship. By making use of data from a nationally representative household survey from Uganda, in which self-reported land size information is complemented by plot measurements collected using Global Position System devices, the authors reject the hypothesis that the inverse relationship may just be a statistical artifact linked to problems with land measurement error. In particular, the paper explores: (i) the determinants of the bias in land measurement, (ii) how this bias varies systematically with plot size and landholding, and (iii) the extent to which land measurement error affects the relative advantage of smallholders implied by the inverse relationship. The findings indicate that using an improved measure of land size strengthens the evidence in support of the existence of the inverse relationship.