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Lands are small scarce almost 85 of all farms are

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Unformatted text preview: farm, wear out soil, move to new land) They are land- abundant Latin America: dualistic pattern with Latifundio (large estates) as well as Minifundio (small estates) Extreme inequality of land holdings Bur despite this diversity, the basics are the same everywhere (regardless of technology): There are 3 markets: Land Labor Capital Role of each depends on the country and context: Asia: lands are small, scarce (almost 85% of all farms are below 5 hectares) Land is binding constraint Land less scarce in other contexts: Latin America: farms are bigger because of land titles being granted to colonial elites, etc. Africa: have had abundant land, but the other factors of production have beent he binding constraints, especially technology Technology is important in all three markets Technology improves productivity of land and labor Two major packages of interventions behind modern agriculture: Biological package (improved plant varieties) Labor and technology are “complements” Mexico created these efficient seeds Wheat came first, then rice, then maize Mechanical package (tractors+machines) Labor and technology are “substitutes” The two can be combined to adjust to particu...
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