IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i24p7148-d297634.html
   My bibliography  Save this article

Impact of Land Use Rights on the Investment and Efficiency of Organic Farming

Author

Listed:
  • Muhammad Waqar Akram

    (College of Economics & Management, North East Forestry University, Harbin 150040, China)

  • Nida Akram

    (College of Economics & Management, North East Forestry University, Harbin 150040, China)

  • Wang Hongshu

    (College of Economics & Management, North East Forestry University, Harbin 150040, China)

  • Shahla Andleeb

    (Department of Environmental Sciences, Government College and Women University, Sailkot 513310, Pakistan)

  • Khalil ur Rehman

    (Department of Environmental Sciences, Government College and Women University, Sailkot 513310, Pakistan)

  • Umair Kashif

    (College of Economics & Management, North East Forestry University, Harbin 150040, China)

  • Ayesha Mehmood

    (Institute of Knowledge and Leadership University of Management and Technology Lahore, 54770 Punjab, Pakistan)

Abstract

This study investigated the impact of three land tenure arrangements on organic farming (OF) in terms of increment of efficiency, yield, and investment in soil-improving activities by using farm-level data gathered from three districts located at Punjab, Pakistan. A multivariate tobit model that captured the probable substitute and investment choices, as well as the endogenous nature of land tenure arrangements, has been employed in this analysis. The empirical outcomes displayed that rights of land use affected the decisions made by farmers to invest in land and to improve efficiency. In detail, owner-farmers with secure rental arrangements invested more in improving their land and productivity compared to those with unsecured lease agreements. The yield per hectare was the highest for owner cultivation farm, while sharecropper output seemed the lowest, which are in agreement with the hypothesis of Marshallian inefficiency.

Suggested Citation

  • Muhammad Waqar Akram & Nida Akram & Wang Hongshu & Shahla Andleeb & Khalil ur Rehman & Umair Kashif & Ayesha Mehmood, 2019. "Impact of Land Use Rights on the Investment and Efficiency of Organic Farming," Sustainability, MDPI, vol. 11(24), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:24:p:7148-:d:297634
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/24/7148/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/24/7148/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Falak Sher & Eatzaz Ahmad, 2008. "Forecasting Wheat Production in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 13(1), pages 57-85, Jan-Jun.
    2. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    3. Oriana Bandiera & Imran Rasul, 2006. "Social Networks and Technology Adoption in Northern Mozambique," Economic Journal, Royal Economic Society, vol. 116(514), pages 869-902, October.
    4. Hanan G. Jacoby & Ghazala Mansuri, 2008. "Land Tenancy and Non-Contractible Investment in Rural Pakistan," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(3), pages 763-788.
    5. Gao, Liangliang & Sun, Dingqiang & Huang, Jikun, 2017. "Impact of land tenure policy on agricultural investments in China: Evidence from a panel data study," China Economic Review, Elsevier, vol. 45(C), pages 244-252.
    6. Tran, Anh N., "undated". "Moral Hazard, Adverse Selection and Sharecropping in Ethiopia," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246972, African Association of Agricultural Economists (AAAE).
    7. Lovo, Stefania, 2016. "Tenure Insecurity and Investment in Soil Conservation. Evidence from Malawi," World Development, Elsevier, vol. 78(C), pages 219-229.
    8. Banerjee, Abhijit V. & Ghatak, Maitreesh, 2004. "Eviction threats and investment incentives," Journal of Development Economics, Elsevier, vol. 74(2), pages 469-488, August.
    9. Keijiro Otsuka & Yanyan Liu & Futoshi Yamauchi, 2016. "The future of small farms in Asia," Development Policy Review, Overseas Development Institute, vol. 34(3), pages 441-461, May.
    10. Jacoby, Hanan G. & Mansuri, Ghazala, 2009. "Incentives, supervision, and sharecropper productivity," Journal of Development Economics, Elsevier, vol. 88(2), pages 232-241, March.
    11. Otsuka, Keijiro & Hayami, Yujiro, 1988. "Theories of Share Tenancy: A Critical Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 37(1), pages 31-68, October.
    12. Arcand, Jean-Louis & Ai, Chunrong & Ethier, Francois, 2007. "Moral hazard and Marshallian inefficiency: Evidence from Tunisia," Journal of Development Economics, Elsevier, vol. 83(2), pages 411-445, July.
    13. Menale Kassie & Stein Holden, 2007. "Sharecropping efficiency in Ethiopia: threats of eviction and kinship," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 179-188, September.
    14. John Pender & Marcel Fafchamps, 2006. "Land Lease Markets and Agricultural Efficiency in Ethiopia," Journal of African Economies, Centre for the Study of African Economies, vol. 15(2), pages 251-284, June.
    15. Deininger, Klaus & Ali, Daniel Ayalew, 2008. "AJAE Appendix: ‘Do Overlapping Land Rights Reduce Agricultural Investment? Evidence from Uganda’," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 90(4), pages 1-6.
    16. Markus Goldstein & Christopher Udry, 2008. "The Profits of Power: Land Rights and Agricultural Investment in Ghana," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 981-1022, December.
    17. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    18. Marenya, Paswel P. & Barrett, Christopher B., 2007. "Household-level determinants of adoption of improved natural resources management practices among smallholder farmers in western Kenya," Food Policy, Elsevier, vol. 32(4), pages 515-536, August.
    19. 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.
    20. Jeffrey D. Michler & Gerald E. Shively, 2015. "Land Tenure, Tenure Security and Farm Efficiency: Panel Evidence from the Philippines," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(1), pages 155-169, February.
    21. Gershon Feder & Tongroj Onchan, 1987. "Land Ownership Security and Farm Investment in Thailand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 311-320.
    22. Trung Thanh Nguyen & Siegfried Bauer & Ulrike Grote, 2016. "Does Land Tenure Security Promote Manure Use by Farm Households in Vietnam?," Sustainability, MDPI, vol. 8(2), pages 1-19, February.
    23. Klaus Deininger & Daniel Ayalew Ali, 2008. "Do Overlapping Land Rights Reduce Agricultural Investment? Evidence from Uganda," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 869-882.
    24. Place, Frank, 2009. "Land Tenure and Agricultural Productivity in Africa: A Comparative Analysis of the Economics Literature and Recent Policy Strategies and Reforms," World Development, Elsevier, vol. 37(8), pages 1326-1336, August.
    25. Klaus Deininger & Daniel Ayalew Ali & Tekie Alemu, 2011. "Impacts of Land Certification on Tenure Security, Investment, and Land Market Participation: Evidence from Ethiopia," Land Economics, University of Wisconsin Press, vol. 87(2), pages 312-334.
    26. F. Place & K. Otsuka, 2002. "Land Tenure Systems and Their Impacts on Agricultural Investments and Productivity in Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 38(6), pages 105-128.
    27. Muddassar Sarfraz & Muhammad Ibrahim Abdullah, 2014. "Buying of Organic Food in Multan (Pakistan) “A Case Study of Consumer’s Perceptionsâ€," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(7), pages 288-293, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Waqar Akram & Nida Akram & Hongshu Wang & Shahla Andleeb & Khalil Ur Rehman & Umair Kashif & Syed Farhaan Hassan, 2020. "Socioeconomics Determinants to Adopt Agricultural Machinery for Sustainable Organic Farming in Pakistan: A Multinomial Probit Model," Sustainability, MDPI, vol. 12(23), pages 1-15, November.
    2. Xiao Lu & Yi Qu & Piling Sun & Wei Yu & Wenlong Peng, 2020. "Green Transition of Cultivated Land Use in the Yellow River Basin: A Perspective of Green Utilization Efficiency Evaluation," Land, MDPI, vol. 9(12), pages 1-22, November.
    3. Adewale Henry Adenuga & Claire Jack & Ronan McCarry, 2021. "The Case for Long-Term Land Leasing: A Review of the Empirical Literature," Land, MDPI, vol. 10(3), pages 1-21, March.
    4. Roestamy, Martin & Martin, Abraham Yazdi & Rusli, Radif Khotamir & Fulazzaky, Mohamad Ali, 2022. "A review of the reliability of land bank institution in Indonesia for effective land management of public interest," Land Use Policy, Elsevier, vol. 120(C).
    5. Rabia Mazhar & Hossein Azadi & Steven Van Passel & Rando Värnik & Marcin Pietrzykowski & Rytis Skominas & Zou Wei & Bi Xuehao, 2023. "Does Contract Length Matter? The Impact of Various Contract-Farming Regimes on Land-Improvement Investment and the Efficiency of Contract Farmers in Pakistan," Agriculture, MDPI, vol. 13(9), pages 1-16, August.
    6. Choi, Jiseon & Jodlowski, Margaret C., 2022. "Tenure Status and Land Investment in South Korea," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322476, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nida Akram & Muhammad Waqar Akram & Hongshu Wang & Ayesha Mehmood, 2019. "Does Land Tenure Systems Affect Sustainable Agricultural Development?," Sustainability, MDPI, vol. 11(14), pages 1-15, July.
    2. Paltasingh, Kirtti Ranjan & Basantaray, Amit Kumar & Jena, Pabitra Kumar, 2022. "Land tenure security and farm efficiency in Indian agriculture: Revisiting an old debate," Land Use Policy, Elsevier, vol. 114(C).
    3. Abdulai, Awudu & Owusu, Victor & Goetz, Renan, 2011. "Land tenure differences and investment in land improvement measures: Theoretical and empirical analyses," Journal of Development Economics, Elsevier, vol. 96(1), pages 66-78, September.
    4. Muna Shifa & Murray Leibbrandt & Martin Wittenberg, 2015. "Does tenure insecurity explain the variations in land-related investment decisions in rural Ethiopia?," SALDRU Working Papers 150, Southern Africa Labour and Development Research Unit, University of Cape Town.
    5. Fenske, James, 2011. "Land tenure and investment incentives: Evidence from West Africa," Journal of Development Economics, Elsevier, vol. 95(2), pages 137-156, July.
    6. Alain Desdoigts & Hugues Kouassi Kouadio, 2013. "Deforestation, Migration, Land Appropriation and Reforms: Rural resilience against the backdrop of the Malthusian crisis in Ivory Coast," Erudite Working Paper 2013-01, Erudite.
    7. Deininger, Klaus & Ali, Daniel Ayalew & Alemu, Tekie, 2011. "Productivity effects of land rental markets in Ethiopia : Evidence from a matched tenant-landlord sample," Policy Research Working Paper Series 5727, The World Bank.
    8. Reshmi Kumari & Yuko Nakano, 2016. "Does land lease tenure insecurity cause decreased productivity and investment in the sugar industry? Evidence from Fiji," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(3), pages 406-421, July.
    9. Kotchikpa Gabriel Lawin & Lota Tamini, 2018. "Droits de propriété foncière et performance des petits producteurs agricoles des pays en développement : une synthèse de la littérature empirique," CIRANO Working Papers 2018s-05, CIRANO.
    10. Bambio, Yiriyibin & Bouayad Agha, Salima, 2018. "Land tenure security and investment: Does strength of land right really matter in rural Burkina Faso?," World Development, Elsevier, vol. 111(C), pages 130-147.
    11. Kimlong Chheng & Budy P. Resosudarmo, 2021. "Land property rights and food insecurity in rural Cambodia," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(6), pages 1911-1929, December.
    12. Donkor, Emmanuel & Frimpong, Frederick Kwabena & Owusu, Victor, 2023. "Land tenure and investment in productive inputs in Ghanaian cocoa farming: A generalised structural equation modelling approach," Land Use Policy, Elsevier, vol. 132(C).
    13. Qian, Chen & Antonides, Gerrit & Heerink, Nico & Zhu, Xueqin & Ma, Xianlei, 2022. "An economic-psychological perspective on perceived land tenure security: Evidence from rural eastern China," Land Use Policy, Elsevier, vol. 120(C).
    14. Ghebru, Hosaena H. & Holden, Stein T., 2012. "Reverse-Share-Tenancy and Marshallian Inefficiency: Bargaining Power of Landowners and the Sharecropper’s Productivity," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126883, International Association of Agricultural Economists.
    15. Deininger, Klaus & Jin, Songqing & Yadav, Vandana, 2012. "Does sharecropping affect productivity and long-term investment ? evidence from West Bengal's tenancy reforms," Policy Research Working Paper Series 6293, The World Bank.
    16. Abebaw Andarge Gedefaw & Clement Atzberger & Walter Seher & Sayeh Kassaw Agegnehu & Reinfried Mansberger, 2020. "Effects of Land Certification for Rural Farm Households in Ethiopia: Evidence from Gozamin District, Ethiopia," Land, MDPI, vol. 9(11), pages 1-23, October.
    17. Adamie, Birhanu Addisu, 2021. "Land property rights and household take-up of development programs: Evidence from land certification program in Ethiopia," World Development, Elsevier, vol. 147(C).
    18. KOUADIO, Hugues & DESDOIGTS, Alain, 2012. "Déforestation, migrations, saturation et réformes foncières: La Côte d’Ivoire entre résilience rurale et litiges fonciers [Deforestation, migration, saturation and land reforms: Côte d'Ivoire betwe," MPRA Paper 49938, University Library of Munich, Germany.
    19. Anthony Harris & Anthony D'Agostino & Sara Litke-Farzaneh & Beryl Seiler & Matt Sloan, "undated". "Morocco Land Productivity Project: Evaluation Design Report," Mathematica Policy Research Reports f3fc788501b64608b17e1cb23, Mathematica Policy Research.
    20. repec:bla:afrdev:v:29:y:2017:i:s2:p:179-197 is not listed on IDEAS
    21. Leonhardt, Heidi & Penker, Marianne & Salhofer, Klaus, 2019. "Do farmers care about rented land? A multi-method study on land tenure and soil conservation," Land Use Policy, Elsevier, vol. 82(C), pages 228-239.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:24:p:7148-:d:297634. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.