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Land Inequality and Economic Growth: A Dynamic Panel Data Approach

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  • Fort, Ricardo
  • Ruben, Ruerd

Abstract

The growing body of literature devoted to study the impact of inequality on economic growth have centred its attention in the income distribution effect, even though the theoretical relationships are more related to assets distributions than to income distribution. While some recent studies have tried to overcome this limitation by introducing indicators of this type, they found a new constraint when dealing only with time-invariant measurements for this explanatory variable. This article provides a theoretical discussion and some novel empirical tests to better understand the relationships between assets distribution and economic growth. We assembled a new panel database that includes observations for more than 30 countries over the last three decades. The data include a time-varying variable for changes in the Land Gini index over this period that enables to overcome the limitations of previous studies that only included time-invariant measurement. A system GMM estimator is used to generate truly unbiased and consistent regression estimates. We explore some of the likely channels through which asset distribution and economic growth may be linked, paying particular attention to the role of secure property rights and the relations between land ownership and education. We find robust and significant negative signs for land inequality in the growth regressions, indicating that changes in asset distribution are an important factor for economic development.

Suggested Citation

  • Fort, Ricardo & Ruben, Ruerd, 2006. "Land Inequality and Economic Growth: A Dynamic Panel Data Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25582, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25582
    DOI: 10.22004/ag.econ.25582
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    Cited by:

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    2. Ludovic Bequet, 2022. "Agricultural productivity and land inequality. Evidence from the Philippines," DeFiPP Working Papers 2203, University of Namur, Development Finance and Public Policies.
    3. Ece Guleryuz, 2016. "Determinants of the Contemporary Inequality among MENA and African Countries: What are in the variation of Land and Natural Resource ownership?," EcoMod2016 9317, EcoMod.
    4. Ece H. Guleryuz, 2017. "Growth Performance of MENA and African Countries: Impacts of the Variations in Land and Natural Resource Ownershýp," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(4), pages 76-84.
    5. Kalkuhl, Matthias & Fernandez Milan, Blanca & Schwerhoff, Gregor & Jakob, Michael & Hahnen, Maren & Creutzig, Felix, 2017. "Fiscal Instruments for Sustainable Development: The Case of Land Taxes," MPRA Paper 78652, University Library of Munich, Germany.
    6. Abubakar, Ismaila Rimi, 2021. "Predictors of inequalities in land ownership among Nigerian households: Implications for sustainable development," Land Use Policy, Elsevier, vol. 101(C).
    7. Maria Cipollina & Nadia Cuffaro & Giovanna D’Agostino, 2018. "Land Inequality and Economic Growth: A Meta-Analysis," Sustainability, MDPI, vol. 10(12), pages 1-20, December.

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    More about this item

    Keywords

    International Development; Land Economics/Use;

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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