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Like amanswarna, in paddy as well as in all crop cultivation, the interlinked holdings are found to be more efficient than the non-interlinked holdings (Table 3 and Table 4).
The efficiency measures pertaining to the segregated contract types also reinforces our earlier contention that interlinked farms are more efficient than the non-interlinked farms.
Empirical evidences further suggest that credit-labour interlinked holdings are more efficient in the allocative sense than non-interlinked holdings.
An attempt has been made in this section to analyse the impact of farm size on allocative efficiency in the interlinked as well as noninterlinked holdings.
In a further comparison of estimated allocative efficiencies between two groups of farmers (interlinked and non-interlinked) across operated farm sizes, it can be argued that the allocative efficiencies increase with the increase in the size of operated land in noninterlinked holdings.
In the backdrop of the controversy of two distinct schools of thought, the Neoclassical and the Marxist, this paper deals with the implications of interlinked rural factor markets on the allocation of resources.
An attempt has been made to examine how interlinked factor markets influence the allocative efficiency across the two agro-climatic zones-irrigated and rain-fed areas (19) (Table A1).
(1993) Interlinked Contracts and Moral Hazard in Investment.
Guasch (1984) Capital Requirements, Screening and Interlinked Sharecropping and Credit Contracts.
(n.d.) Behind Agrarian Distress: Interlinked Transactions as Exploitative Mechanisms.
(1991) Interlinked Agrarian Markets in Rural India.
(1999) Agricultural Tenancy and interlinked Transactions-II: Neoclassical and Marxist Approaches.