Farm size and productivity in Nicaragua: Parametric and nonparametric analyses for panel data

This paper examines the inverse relationship hypothesis (IR-H) between farm size and agricultural productivity in Nicaragua using parametric and nonparametric methods designed specifically for panel data. The data employed are from the World Bank's Living Standards Measurement Study for the years 1998, 2001 and 2005. The analysis reveals strong support for the IR-H based on a number of alternative parametric specifications. The results from the nonparametric models lend partial support to the IR-H, and such support is weaker than what is obtained from the parametric models, particularly among medium and large landholders.