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    A Direct-Inverse-Direct" Relationship"

    Reports & Research
    Policy Papers & Briefs
    June, 2017
    Ethiopia, Africa

    This paper proposes a new interpretation of the farm size-productivity relationship. Using two rounds of the Ethiopian Rural Household Survey, and drawing on earlier work on five countries in Sub-Saharan Africa, the paper shows that the relationship between farm size and productivity is neither monotonic nor univocal. Most previous studies that tested the inverse farm size-productivity relationship used ordinary least squares estimation, therefore reporting parameter estimates at the conditional mean of productivity.

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