Effects of Agricultural Mechanization on Farm Income Patterns

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This article is part of the seminar-workshop on the “Consequences of Small Farm Mechanization on Production, Employment and Incomes in the Philippines” sponsored jointly by the Ministry of Agriculture, the National Economic and Development Authority, the Philippine Institute for Development Studies and the International Rice Research Institute held on December 1-2, 1983 at Tagaytay City. Utilizing cross-section results from a survey conducted, this article measures the importance of mechanization as a source of income variation. Analysis supports the fact that mechanization has effects on income changes. However, this article encourages the use of multivariate analysis for a better assessment of its impact and the inclusion of factor share analysis to account for the distribution of ownership.