Land Distribution and Agricultural Productivity: A District level analysis of Punjab province
Author: Sobia Saeed

This dissertation examines the impact of inequalities in distribution of land holdings on the agricultural productivity. Using panel data for the period of 28 years (1982-2009) for 34 districts of Punjab province, the study estimates a single equation production function applying OLS, Fixed Effects, and Random Effects techniques. This Study also checks the relationship of average farm size, use of fertilizers, use of tractors and rain fall with the agricultural productivity. A wide range of literature is available on the issue of farm size and agricultural productivity but no serious effort has been done to quantify the impact of inequality in land distribution on agricultural productivity. The present study fills this gap by incorporating the inequalities in land distribution as well as size of farm in the agricultural production function analysis. To measure the distribution of land inequality, this thesis estimates Gini coefficient. Huasman specification test favors the Fixed Effects estimation technique. The results of Fixed Effects suggest that inequality in distribution of operational holdings and average farm size exert negative and statistically significant impact on agricultural productivity. Per hectare use of fertilizers and per hectare use of tractors have significant and positive influence on agricultural productivity. Quantum of rain water availability also plays significant role in enhancing agricultural productivity. ix Based on results of this study, various policy options are proposed including: reducing land markets imperfections; land reforms to redistribute the land assets to landless and marginal farmers; and developing strong linkages between farm and non-farm sectors. Furthermore, there is need to reduce polarization in the rural economy—either by helping the resource poor farmers to realize greater productivity potential or finding them alternative livelihood opportunities in the non-farm sector, through tenurial reforms, education, health care, and microcredit. More importantly, the provision of modern technologies—seed, mechanical equipment, balanced chemical fertilizers, to the small and resource poor farmers could result into higher agricultural productivity. Supervised By Dr. Munir Ahmad

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Keywords : AGRICULTURAL PRODUCTIVITY, Agricultural Productivity-Punjab-Pakistan, Land Distribution, Land Distribution-Punjab
Supervisor: Munir Ahmad

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