The relevance of factors that are unrelated to productivity is reinforced by the fact that having seen a new large farm established in the immediate vicinity (< 25 km) is estimated to have resulted in a significant increase by 4.4 points in the likelihood of small farmers’ feeling to be worse off than 3 years ago, consistent with highly significant positive point estimates on the likelihood to perceive the current situation worse than 3 years ago in the equation with area of new large farm establishment as the relevant independent variable. Exploring potential reasons for this result in more detail would be of interest.

# **4.2 Evidence of spillover effects on yields**

Assuming that transfers of technology that result in increased yields large farms are more likely to have spillover effects on smallholders growing the same crops, we replace the relevant indicators ( _Lijtd_ and _Aijtd_ ) in equation (1) with equivalent measures for new large farms growing at least 1 ha of the same crop as the small farm in question. Results, in panel A and B of table 8, suggest that, once other inputs are controlled for, with the exception of the weakly positive effect (25-50 km) on rice yield, there is no significant effect of large farm establishment on smallholder yields. While this is contrary to what was found in Ethiopia (Ali _et al._ 2015), it seems plausible in light of the limited overlap in main crops between large and small farms, the fact that in all crops except rice and sugarcane, mean differences in yield between large and small farms are either negligible or negative thus limiting the scope for technology spillovers, and -in the case of ricerelatively short time elapsed since large farm formation.

# **5. Conclusion and policy implications**

Our contribution is both methodological and substantive. Methodologically, we show that it is possible to assess spillover effects from large land-based investment by combining locational information from household and large farm survey data that are, in many countries where such investment is relevant, routinely available. Although existing data may not be ideal, protocols to ensure that future surveys readily provide such information can be implemented at low marginal cost, implying that it should be possible to have a ready stream of relevant data for future research and analysis.

From a substantive point of view, we indeed find evidence of positive spillovers from large farm establishment on neighboring small and medium farmers in terms of adopting some practices and accessing fertilizer and pesticides. At the same time we fail to find positive spillover effects on markets for other factors, in particular labor, output market participation, and–if other inputs are controlled for– yields. Most spillover effects are quite localized, i.e. there is no support for the hypothesis of establishment of large farms beyond a 25 or at most 50 km radius to have any impact on smallholders. Also, a significant negative impact of large farm establishment on neighboring smallholders’ subjective well-being implies that, the positive learning effects notwithstanding, those in close proximity (within 25 km) perceive unobserved 13