A re-examination of the relationship between plot size and productivity: The case of Bangladesh

Abstract

Recent evidence shows that the inverse relationship between plot size and productivity is driven by an edge effect or by the over-reporting of production by farmers on smaller plots. In this paper, we re-examine the relationship between plot size and productivity in the context of Bangladesh. We also examine whether the effect of plot size is different across rice and non-rice crops. We use panel data at the household level and estimate a fixed effects model. Results show that the effect of plot size on productivity is positive but not statistically significant. Further results show that there is no statistically significant effect of plot size on productivity for both rice and non-rice crops. Our findings suggest that land redistribution, even if it leads to smaller plots, will not decrease farm production.