Does size of operated area matter? Evidence from Malawi's agricultural production

The objective of this paper was to examine the relationship between farm size and agricultural productivity using data from Malawi. This paper has examined the relationship using ordinary least squares regression with heteroskedasticity consistent covariance matrix (HC3) standard errors having confirmed absence of endogeneity of farm size. The major finding is that, contrary to the findings of earlier studies which reported a positive relationship, there is strong evidence that probably the post market liberalization period (1990s) became characterized by an inverse farm size productivity relationship. This finding suggests that well-thought-after land and credit market interventions or land redistribution from the rich to the land poor households would possibly raise total output thorough productivity gains.