Returns-to-scale and factor endowments-induced specialization: Agricultural mechanization and agricultural transformation in Nepal

Heterogeneity in factor endowments and the degree of specializations induced by comparative advantages are among the crucial factors that affect the overall productivity of the economy.

Agricultural mechanization has often been characterized by scale-effects and increased specialization.

Agriculture, natural resources, and the nutrition landscape in South Asia (SA) are unique. As in other Asian regions, SA’s agriculture is largely smallholder based and continues to employ a large share of the workforce, compared with Latin America.