Farm Size, Factor Productivity and Returns to Scale under Different Types of Water Management

Farm Size, Factor Productivity and Returns to Scale under Different Types of Water Management Arindam Banik It used to be claimed, notably in Indian subcontinent that there is either a positive or negative significant relationship between land productivity and farm size. Attempts were made to explain the relationship using two important factors, viz, disguise unemployment and imperfection of factor markets. Solutions such as supply of inputs, land reform, etc, were suggested. Yet in poorer countries the odds are that even within a village and during any peak farm operation the question of disguise unemployment is liable to be troublesome in rice economies as these are time-specific and water management-specific. What is thus interesting and seems to have been missed out by the existing literature is that several of the factors can be exacerbated or minimised depending on the management of water in question.