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Land Markets and Agricultural Land Use Efficiency and Sustainability: Evidence from East Africa

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Author Info
Benin, Samuel
Place, Frank
Nkonya, Ephraim
Pender, John

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Abstract

Land markets, including land sales and short-term land rentals, have an important role to play for efficient and sustainable land management and agricultural development, especially where markets for other factors of production are imperfect or missing. This study utilises data from the highlands of Ethiopia, Kenya and Uganda to examine the impact of land markets on various types of land investment and management practices, crop yield, and land quality. The results highlight the relative long-term versus short-term return to different types of investment and practices, where those with longer-term benefits such as trees, manuring, and composting are preferred on more tenure-secure plots, while those with immediate or season-to-season benefits such as drainage structures or chemical fertilizers are preferred on rented plots. The impact on agricultural productivity is mixed and context specific. Regarding land quality outcomes, there is reason to believe that plots traded on short-term markets in Kenya and Uganda tend to be of inferior quality, supporting the hypothesis of movement of land from households to those with higher capital/land ratios.

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Publisher Info
Paper provided by International Association of Agricultural Economists in its series 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia with number 25645.

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Date of creation: 2006
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Handle: RePEc:ags:iaae06:25645

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Related research
Keywords: land markets; land investment and management; land use efficiency; Land Economics/Use;

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  1. Holden, Stein & Shiferaw, Bekele & Pender, John L., 2001. "Market imperfections and land productivity in the Ethiopian Highlands:," EPTD discussion papers 76, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  2. Stiglitz, Joseph E, 1974. "Incentives and Risk Sharing in Sharecropping," Review of Economic Studies, Blackwell Publishing, vol. 41(2), pages 219-55, April. [Downloadable!] (restricted)
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  3. Shaban, Radwan Ali, 1987. "Testing between Competing Models of Sharecropping," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 893-920, October. [Downloadable!] (restricted)
  4. Al, C. & Arcand, J.L. & Ethier, F., 1996. "Moral Hazard and Marshallian Inefficiency: Evidence from Tunisia," Cahiers de recherche 9605, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
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  5. Allen, Franklin, 1985. "On the Fixed Nature of Sharecropping Contracts," Economic Journal, Royal Economic Society, vol. 95(377), pages 30-48, March. [Downloadable!] (restricted)
  6. Laffont, Jean-Jacques & Matoussi, Mohamed Salah, 1995. "Moral Hazard, Financial Constraints and Sharecropping in El Oulja," Review of Economic Studies, Blackwell Publishing, vol. 62(3), pages 381-99, July. [Downloadable!] (restricted)
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  7. Sadoulet, Elisabeth & Fukui, Seiichi & Janvry, Alan de, 1994. "Efficient share tenancy contracts under risk: The case of two rice-growing villages in Thailand," Journal of Development Economics, Elsevier, vol. 45(2), pages 225-243, December. [Downloadable!] (restricted)
  8. Nkonya, Ephraim M. & Pender, John L. & Jagger, Pamela & Sserunkuuma, Dick & Kaizzi, Crammer & Ssali, Henry, 2004. "Strategies for sustainable land management and poverty reduction in Uganda:," Research reports 133, International Food Policy Research Institute (IFPRI). [Downloadable!]
  9. Jaynes, Gerald David, 1982. "Production and Distribution in Agrarian Economies," Oxford Economic Papers, Oxford University Press, vol. 34(2), pages 346-67, July. [Downloadable!] (restricted)
  10. Nkonya, Ephraim M. & Pender, John & Kaizzi, Crammer & Edward, Kato & Mugarura, Samuel, 2005. "Policy options for increasing crop productivity and reducing soil nutrient depletion and poverty in Uganda:," EPTD discussion papers 134, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  15. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-37, October. [Downloadable!] (restricted)
  16. Pender, John L. & Fafchamps, Marcel, 2001. "Land lease markets and agricultural efficiency: theory and evidence from Ethiopia," EPTD discussion papers 81, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  17. Ahmed, Mohamed M. & Gebremedhin, Berhanu & Benin, Samuel & Ehui, Simeon, 2002. "Measurement and sources of technical efficiency of land tenure contracts in Ethiopia," Environment and Development Economics, Cambridge University Press, vol. 7(03), pages 507-527, July. [Downloadable!]
  18. Otsuka, Keijiro & Hayami, Yujiro, 1988. "Theories of Share Tenancy: A Critical Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 37(1), pages 31-68, October.
  19. Shetty, Sudhir, 1988. "Limited liability, wealth differences and tenancy contracts in agrarian economies," Journal of Development Economics, Elsevier, vol. 29(1), pages 1-22, July. [Downloadable!] (restricted)
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