Land Misallocation and Productivity
Using detailed household-farm level data from Malawi, we measure real farm total factor productivity (TFP) controlling for a wide array of factor inputs, land quality, and transitory shocks. We nd that factor inputs are roughly evenly spread among farmers: operated land size and capital are essentially unrelated to farm TFP implying a strong negative eect on aggregate agricultural productivity. A reallocation of factors to their ecient use among existing farmers would increase agricultural productivity by a factor of 3.6-fold.