How does population density influence agricultural intensification and productivity? Evidence from Malawi |
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Institution: | 1. Department of Agricultural Economics, Purdue University, Krannert Room 623, 403 West State Street, West Lafayette, IN 47907-2056, USA;2. Lilongwe University of Agriculture and Natural Resources (LUANAR), Bunda College of Agriculture, Center for Agricultural Research and Development, P.O. Box 219, Lilongwe, Malawi;3. International Development, Department of Agricultural, Food, & Resource Economics, Michigan State University, 446 W. Circle Dr., Room 207, East Lansing, MI 48824, USA |
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Abstract: | This article uses nationally representative household-level panel data from Malawi to estimate how rural population density impacts agricultural intensification and household well-being. We find that areas of higher population density are associated with smaller farm sizes, lower real agricultural wage rates, and higher real maize prices. Any input intensification that occurs seems to be going to increasing maize yields, as we find no evidence that increases in population density enable farmers to increase gross value of crop output per hectare. We also find evidence that households in more densely populated areas increasingly rely on off-farm income to earn a living, but there appears to be a rural population density threshold beyond which households can no longer increase off-farm income per capita. |
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Keywords: | Population density Agricultural intensification Rural development Induced innovation Smallholders Malawi |
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