Impacts of Land Rental Markets on Rural Poverty in Kenya
AbstractThis study uses panel data from 1,142 Kenya smallholder households over four survey periods to examine the determinants of participation in land rental markets and to quantify the impact of renting land on households’ crop income and total income. We find that land rental markets in Kenya enhance productivity and are equitable. The results are consistent across different estimation methods and model specifications. Dynamic panel models were used to assess the impact of rental participation on households’ crop income and total income. After controlling for the endogeneity of rental market participation and the persistent effects of lagged income, we find that the decision to rent land increased tenant households’ net crop (net total) income by 25.1 (6.6) percent. These percentage gains are inversely related to household landholding size. Hence, land rental markets in Kenya appear to play an important role in raising incomes and reducing poverty for land-constrained smallholder farmers.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103907.
Date of creation: 2011
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Land rental market; Kenya; Income; Poverty; Dynamic model; Agricultural and Food Policy; International Development; Land Economics/Use; O12; Q13; Q12; Q15;
Find related papers by JEL classification:
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- 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
This paper has been announced in the following NEP Reports:
- NEP-AFR-2011-05-24 (Africa)
- NEP-AGR-2011-05-24 (Agricultural Economics)
- NEP-ALL-2011-05-24 (All new papers)
- NEP-DEV-2011-05-24 (Development)
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- Puddu,Marco & Bartolini, Fabio & Viaggi,Davide, 2012. "Simulation of Land Use and Investment Behaviour under Different Policy Scenarios: Results of the extended farm/household model," Factor Markets Working Papers 132, Centre for European Policy Studies.
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