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Abstract

Using both household level and plot level data of Northern Bangladesh, this paper analyzes the difference in agricultural productivity across different contractual arrangements among ultra-poor households. Employing fixed effect model on the Pseudo panel data the paper finds evidence of sub-optimal use of inputs and the consequent lower productivity for lands cultivated under share-cropping contract. The inefficiency on part of the sharecroppers is also evidenced by Stochastic Frontier Model. Although the paper finds no direct impact of credit on productivity, results of Logit estimates suggest that availability of credit induces households to opt for fixed rental contract.

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