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The effects of land sales restrictions: evidence from south India

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  • Pender, John L.
  • Kerr, John M.

Abstract

The effects of land sales restrictions on credit use, land investment and cultivation decisions are investigated using data from two villages in south India. Sales restrictions are found to have little effect on credit supply and demand or demand for land improvements. Some household characteristics are found to affect investment demand on plots subject to sales restrictions in one village, suggesting that the 'transactions effect' of such restrictions may be inhibiting allocative efficiency. However, we also find that household characteristics influence investment on titled plots, and that the magnitude of impact of such characteristics is greater on titled plots. These results imply that sales restrictions are not a major source of inefficiency in the villages studied, and suggest that the nature of village credit and land markets and enforcement of sales restrictions are critical determinants of the impacts of such restrictions. ©1999 Elsevier Science B.V. All rights reserved.

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Bibliographic Info

Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 21 (1999)
Issue (Month): 3 (December)
Pages: 279-294

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Handle: RePEc:eee:agecon:v:21:y:1999:i:3:p:279-294

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  1. Joseph Hayes & Michael Roth & Lydia Zepeda, 1997. "Tenure Security, Investment and Productivity in Gambian Agriculture: A Generalized Probit Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 369-382.
  2. Fafchamps, Marcel & Pender, John, 1997. "Precautionary Saving, Credit Constraints, and Irreversible Investment: Theory and Evidence from Semiarid India," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 180-94, April.
  3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
  4. Hoff, Karla, 1991. "Introduction: Agricultural Taxation and Land Rights Systems," World Bank Economic Review, World Bank Group, vol. 5(1), pages 85-91, January.
  5. Sarah Gavian & Marcel Fafchamps, 1996. "Land Tenure and Allocative Efficiency in Niger," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 460-471.
  6. Pender, John L., 1996. "Discount rates and credit markets: Theory and evidence from rural india," Journal of Development Economics, Elsevier, vol. 50(2), pages 257-296, August.
  7. Heath, John Richard, 1992. "Evaluating the impact of Mexico's land reform on agricultural productivity," World Development, Elsevier, vol. 20(5), pages 695-711, May.
  8. Migot-Adholla, Shem, et al, 1991. "Indigenous Land Rights Systems in Sub-Saharan Africa: A Constraint on Productivity?," World Bank Economic Review, World Bank Group, vol. 5(1), pages 155-75, January.
  9. Atwood, David A., 1990. "Land registration in Africa: The impact on agricultural production," World Development, Elsevier, vol. 18(5), pages 659-671, May.
  10. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-37, October.
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Cited by:
  1. Pender, John & Nkonya, Ephraim & Jagger, Pamela & Sserunkuuma, Dick & Ssali, Henry, 2004. "Strategies to increase agricultural productivity and reduce land degradation: evidence from Uganda," Agricultural Economics, Blackwell, vol. 31(2-3), pages 181-195, December.
  2. Petracco, Carly K. & Pender, John L., 2009. "Evaluating the Impact of Land Tenure and Titling on Access to Credit in Uganda," 2009 Conference, August 16-22, 2009, Beijing, China 51899, International Association of Agricultural Economists.
  3. Misha Saleem, 2011. "The Effect of Ownership Rights on Urban Households' Access to Credit in Lahore," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(2), pages 111-139, Jul-Dec.
  4. Pender, John & Ssewanyana, Sarah & Edward, Kato & Nkonya, Ephraim M., 2004. "Linkages between poverty and land management in rural Uganda: evidence from the Uganda National Household Survey, 1999/00," EPTD discussion papers 122, International Food Policy Research Institute (IFPRI).
  5. World Bank, 2005. "Uganda : Policy Options for Increasing Crop Productivity and Reducing Soil Nutrient Depletion and Poverty," World Bank Other Operational Studies 8647, The World Bank.
  6. Akee, Randall K. Q., 2006. "Checkerboards and Coase: Transactions Costs and Efficiency in Land Markets," IZA Discussion Papers 2438, Institute for the Study of Labor (IZA).
  7. Pender, John L. & Benin, Samuel, 2001. "Impacts Of Land Resdistribution On Land Management And Productivity In The Ethiopian Highlands," 2001 Annual meeting, August 5-8, Chicago, IL 20701, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Pender, John L., 1999. "Rural population growth, agricultural change and natural resource management in developing countries: a review of hypotheses and some evidence from Honduras," EPTD discussion papers 48, International Food Policy Research Institute (IFPRI).
  9. Nakasone, Eduardo, 2011. "The impact of land titling on labor allocation: Evidence from rural Peru," IFPRI discussion papers 1111, International Food Policy Research Institute (IFPRI).
  10. Nkonya, Ephraim M. & Pender, John & Kato, Edward & Mugarura, Samuel & Muwonge, James, 2005. "Who knows, who cares?: determinants of enactment, awareness and compliance with community natural resource management," CAPRi working papers 41, International Food Policy Research Institute (IFPRI).
  11. Rohini Pande & Christopher Udry, 2005. "Institutions and Development:A View from Below," Working Papers 928, Economic Growth Center, Yale University.
  12. Kemper, Niels & Klump, Rainer & Schumacher, Heiner, 2011. "Representation of property rights and credit market outcomes: Evidence from a land reform in Vietnam," Proceedings of the German Development Economics Conference, Berlin 2011 45, Verein für Socialpolitik, Research Committee Development Economics.

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