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Equity and efficiency impacts of rural land rental restrictions: Evidence from India

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Author Info
Jin, Songqing
Deininger, Klaus
Nagarajan, Hari

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Abstract

Recognition of the potentially deleterious implications of high inequality of opportunity due to a biased asset distribution has led to increased interest in land reforms. However, little attention has been devoted to the potential longer-term impacts of the measures used to implement such reforms, despite evidence that, the restrictions on land rental in rural areas they imply can have potentially far-reaching consequences. Use of state level data on rental restrictions, in conjunction with a nationally representative survey from India suggests that, contrary to their original intention, rental restrictions significantly reduce supply of land to the rental market, prevent land access by the landless, and by more productive producers. Ways to counter these effects by liberalizing land rental markets are discussed.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21305.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21305

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Keywords: Land Economics/Use;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
  5. Aghion, Philippe & Caroli, Eve & Garcia-Penalosa, Cecilia, 1999. "Inequality and economic growth: the perspective of the new growth theories," CEPREMAP Working Papers (Couverture Orange) 9908, CEPREMAP. [Downloadable!]
    Other versions:
  6. Rawal, Vikas, 2001. "Agrarian Reform and Land Markets: A Study of Land Transactions in Two Villages of West Bengal, 1977-1995," Economic Development and Cultural Change, University of Chicago Press, vol. 49(3), pages 611-29, April.
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  12. Abhijit V. Banerjee & Paul J. Gertler & Maitreesh Ghatak, 2002. "Empowerment and Efficiency: Tenancy Reform in West Bengal," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 239-280, April. [Downloadable!] (restricted)
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  15. Lee J. Alston & Joseph P. Ferrie, 2005. "Time on the Ladder: Career Mobility in Agriculture, 1890-1938," NBER Working Papers 11231, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  16. Basu, Kaushik & Emerson, Patrick M, 2000. "The Economics of Tenancy Rent Control," Economic Journal, Royal Economic Society, vol. 110(466), pages 939-62, October. [Downloadable!] (restricted)
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    Other versions:
  18. Kaushik Basu & Patrick M. Emerson, 2003. "Efficiency Pricing, Tenancy Rent Control and Monopolistic Landlords," Economica, London School of Economics and Political Science, vol. 70(278), pages 223-232, 05. [Downloadable!] (restricted)
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  20. Deininger, Klaus & Jin, Songqing, 2005. "The potential of land rental markets in the process of economic development: Evidence from China," Journal of Development Economics, Elsevier, vol. 78(1), pages 241-270, October. [Downloadable!] (restricted)
  21. Jonathan Conning & James A. Robinson, 2005. "Property Rights and the Political Organization of Agriculture," Hunter College Department of Economics Working Papers 405, Hunter College: Department of Economics. [Downloadable!]
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  22. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October. [Downloadable!] (restricted)
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  24. Timothy Besley & Robin Burgess, 2004. "Can Labor Regulation Hinder Economic Performance? Evidence from India," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 91-134, February. [Downloadable!] (restricted)
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  25. Timothy Besley & Robin Burgess, 2000. "Land Reform, Poverty Reduction, And Growth: Evidence From India," The Quarterly Journal of Economics, MIT Press, vol. 115(2), pages 389-430, May. [Downloadable!] (restricted)
    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Ahuja Vinod & Bhamoriya Vaibhav & Lalit Dipti, 2007. "Why have some Indian states lagged behind the others in improving agriculture sector performance?," IIMA Working Papers 2007-12-01, Indian Institute of Management Ahmedabad, Research and Publication Department. [Downloadable!]
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