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Social Capital and Large-Scale Agricultural Investments: An Experimental Investigation
[Implications of the presence of large scale commercial farmers on small scale farming in Nigeria: the case of Zimbabwean farmers in Kwara State]

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  • Menusch Khadjavi
  • Kacana Sipangule
  • Rainer Thiele

Abstract

Following the 2007–8 global food crisis, agricultural producers have invested in large tracts of land in developing countries. We investigate how the arrival of large-scale farms changes inter-personal trust and reciprocity, important components of social capital, in traditional villages. We elicit trust and reciprocal behaviour in villages that lie near large-scale farms and compare them with villages at a distance. Our data reveal greater trust in villages close to large-scale farms. Reciprocity is more frequent after farm employment. These results are likely driven by communal coping and reputation building. A natural field measure shows that trust correlates with public good sharing.

Suggested Citation

  • Menusch Khadjavi & Kacana Sipangule & Rainer Thiele, 2021. "Social Capital and Large-Scale Agricultural Investments: An Experimental Investigation [Implications of the presence of large scale commercial farmers on small scale farming in Nigeria: the case of," The Economic Journal, Royal Economic Society, vol. 131(633), pages 420-449.
    • Handle: RePEc:oup:econjl:v:131:y:2021:i:633:p:420-449.
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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