Fact or artifact: The impact of measurement errors on the farm size-productivity relationship

This paper revisits the role of land measurement error in the inverse farm size and productivity relationship (IR). By making use of data from a nationally representative household survey from Uganda, in which self-reported land size information is complemented by plot measurements collected using Global Position System (GPS) devices we reject the hypothesis that IR may just be a statistical artifact linked to problems with land measurement error. In particular, we explore: (i) what are the determinants of the bias in land measurement, (ii) how this bias varies systematically with plot size and landholding, and (iii) the extent to which land measurement error affects the relative advantage of smallholders implied by the IR. Our findings indicate that using an improved measure of land size strengthens the evidence in support of the existence of the IR.