Does land tenure form affect farm-level productivity? The answer, from farm-level data for an oil palm project in Papua New Guinea, is in the affirmative. Analysis of farm-level output, controlling for all measured inputs, shows systematic differences in productivity across three land tenure types, namely, farms under customary purchase agreements, those under the land settlement scheme, and those under village-owned land schemes. The empirics suggest that the higher productivity is due to benefits from economies of scale and absence of income sharing enjoyed by farms with improved tenure security.
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Article provided by University of Wisconsin Press in its journal Land Economics.
Find related papers by JEL classification: Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation
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