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The Impact of Farm Consolidation on Productive Efficiency in Korean Agriculture: Analysis of Farm-level Panel Data

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Abstract

This paper examines the impact of farm consolidation on productive efficiency, using farm-level panel data from 1998 to 2002. For representation of efficiency and its determinants, this paper uses a model that estimates the deviations of farms from a translog distance function and the determinants of these deviations. Especially, this paper estimates a stochastic multi-output distance function to accommodate multiple outputs and inputs within the frontier framework. The empirical evidence finds that larger farms are more efficient than smaller ones.

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