IDEAS home Printed from https://ideas.repec.org/p/hhs/cesisp/0455.html
   My bibliography  Save this paper

Assessing the Role of Land Use Consolidation for Consumption Growth in Rwanda

Author

Listed:
  • Nilsson, Pia

    (Jönköping International Business School, Discipline of Economics, Finance and Statistics, CEnSE (Centre for Entrepreneurship and Spatial Economics))

Abstract

This paper studies the effects of land use consolidation on consumption growth of farm households in Rwanda. Data on 1 920 households, observed in two time periods, are used to estimate a first-differenced model using an instrumental variables estimator, which allow the analysis to account for selection bias and placement effects. Results show no significant effect of land use consolidation on consumption growth and the results are robust to changes in model specification and estimation method. Rather, the results point to the importance of factors such as education, rural infrastructure and market linkages in the consumption growth process. These results highlight the need to consider that alternative public investments, that reduce households’ transaction costs, may be better able to target rural farmers that operate under conditions such as land scarcity, high population pressure and high risk linked to rapidly changing climate conditions.

Suggested Citation

  • Nilsson, Pia, 2017. "Assessing the Role of Land Use Consolidation for Consumption Growth in Rwanda," Working Paper Series in Economics and Institutions of Innovation 455, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    • Handle: RePEc:hhs:cesisp:0455
    as

    Download full text from publisher

    File URL: https://static.sys.kth.se/itm/wp/cesis/cesiswp455.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daniel Ayalew Ali & Klaus Deininger & Marguerite Duponchel, 2014. "Credit Constraints and Agricultural Productivity: Evidence from rural Rwanda," Journal of Development Studies, Taylor & Francis Journals, vol. 50(5), pages 649-665, May.
    2. Stefan Dercon & Daniel O. Gilligan & John Hoddinott & Tassew Woldehanna, 2009. "The Impact of Agricultural Extension and Roads on Poverty and Consumption Growth in Fifteen Ethiopian Villages," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1007-1021.
    3. Rodrik, Dani, 1999. "Where Did All the Growth Go? External Shocks, Social Conflict, and Growth Collapses," Journal of Economic Growth, Springer, vol. 4(4), pages 385-412, December.
    4. Bruce D. Meyer & James X. Sullivan, 2003. "Measuring the Well-Being of the Poor Using Income and Consumption," NBER Working Papers 9760, National Bureau of Economic Research, Inc.
    5. Felbermayr, Gabriel J. & Jung, Benjamin, 2009. "The pro-trade effect of the brain drain: Sorting out confounding factors," Economics Letters, Elsevier, vol. 104(2), pages 72-75, August.
    6. Ali, Merima & Peerlings, Jack, 2011. "Value Added of Cluster Membership for Micro Enterprises of the Handloom Sector in Ethiopia," World Development, Elsevier, vol. 39(3), pages 363-374, March.
    7. Dethier, Jean-Jacques & Effenberger, Alexandra, 2012. "Agriculture and development: A brief review of the literature," Economic Systems, Elsevier, vol. 36(2), pages 175-205.
    8. Timmer, C. Peter, 2002. "Agriculture and economic development," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 29, pages 1487-1546, Elsevier.
    9. Jayne, T.S. & Mather, David & Mghenyi, Elliot, 2010. "Principal Challenges Confronting Smallholder Agriculture in Sub-Saharan Africa," World Development, Elsevier, vol. 38(10), pages 1384-1398, October.
    10. Dorward, Andrew & Kydd, Jonathan & Morrison, Jamie & Urey, Ian, 2004. "A Policy Agenda for Pro-Poor Agricultural Growth," World Development, Elsevier, vol. 32(1), pages 73-89, January.
    11. Takashi Kurosaki, 2003. "Specialization and Diversification in Agricultural Transformation: The Case of West Punjab, 1903–92," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 372-386.
    12. Smith, Davd Rider & Gordon, Ann & Meadows, Kate & Zwick, Karen, 2001. "Livelihood diversification in Uganda: patterns and determinants of change across two rural districts," Food Policy, Elsevier, vol. 26(4), pages 421-435, August.
    13. Haggblade, Steven & Hazell, Peter & Reardon, Thomas, 2010. "The Rural Non-farm Economy: Prospects for Growth and Poverty Reduction," World Development, Elsevier, vol. 38(10), pages 1429-1441, October.
    14. Diao, Xinshen & Hazell, Peter & Thurlow, James, 2010. "The Role of Agriculture in African Development," World Development, Elsevier, vol. 38(10), pages 1375-1383, October.
    15. Islam, Asadul & Maitra, Pushkar, 2012. "Health shocks and consumption smoothing in rural households: Does microcredit have a role to play?," Journal of Development Economics, Elsevier, vol. 97(2), pages 232-243.
    16. Bigsten, Arne, 1996. "The Circular Migration of Smallholders in Kenya," Journal of African Economies, Centre for the Study of African Economies, vol. 5(1), pages 1-20, March.
    17. Howe, Gerard & McKay, Andrew, 2007. "Combining Quantitative and Qualitative Methods in Assessing Chronic Poverty: The Case of Rwanda," World Development, Elsevier, vol. 35(2), pages 197-211, February.
    18. Abdulai, Awudu & CroleRees, Anna, 2001. "Determinants of income diversification amongst rural households in Southern Mali," Food Policy, Elsevier, vol. 26(4), pages 437-452, August.
    19. Unknown, 1961. "The Role of Agriculture in Economic Development," International Journal of Agrarian Affairs, International Association of Agricultural Economists, vol. 3(2), pages 1-1, April.
    20. Collier, Paul & Dercon, Stefan, 2014. "African Agriculture in 50Years: Smallholders in a Rapidly Changing World?," World Development, Elsevier, vol. 63(C), pages 92-101.
    21. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nilsson, Pia & Backman, Mikaela & Bjerke, Lina & Maniriho, Aristide, 2017. "One cow per poor family: effects on consumption and crop production in Rwanda," Working Paper Series in Economics and Institutions of Innovation 462, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    2. Nilsson, Pia & Backman, Mikaela & Bjerke, Lina & Maniriho, Aristide, 2019. "One cow per poor family: Effects on the growth of consumption and crop production," World Development, Elsevier, vol. 114(C), pages 1-12.
    3. Gamel Abdul-Nasser Salifu, 2019. "The Political Economy Dynamics of Rural Household Income Diversification: A Review of the International Literature," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 273-290, December.
    4. Anubhab Gupta & Justin Kagin & J Edward Taylor & Mateusz Filipski & Lindi Hlanze & James Foster, 2018. "Is technology change good for cotton farmers? A local-economy analysis from the Tanzania Lake Zone," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(1), pages 27-56.
    5. Dawson, Neil & Martin, Adrian & Sikor, Thomas, 2016. "Green Revolution in Sub-Saharan Africa: Implications of Imposed Innovation for the Wellbeing of Rural Smallholders," World Development, Elsevier, vol. 78(C), pages 204-218.
    6. Naseem, Anwar & Oehmke, James F. & Anderson, Jock & Mbaye, Samba & Pray, Carl & Nagarajan, Latha & Moss, Charles B. & Post, Lori, 2017. "Measuring Agricultural and Structural Transformation," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258549, Agricultural and Applied Economics Association.
    7. Charles B. Moss & Samba Mbaye & Anwar Naseem & James F. Oehmke, 2018. "Did the Plan Sénégal Emergent Affect Cropping Decisions in the Senegal River Basin?," Economies, MDPI, vol. 6(3), pages 1-17, July.
    8. Glover, Steven & Jones, Sam, 2019. "Can commercial farming promote rural dynamism in sub-Saharan Africa? Evidence from Mozambique," World Development, Elsevier, vol. 114(C), pages 110-121.
    9. Geyao Yang & Changchun Zhou & Jiekuan Zhang, 2023. "Does industry convergence between agriculture and related sectors alleviate rural poverty: evidence from China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12887-12914, November.
    10. Larson,Donald F. & Muraoka,Rie & Otsuka,Keijiro, 2016. "On the central role of small farms in African rural development strategies," Policy Research Working Paper Series 7710, The World Bank.
    11. Jayne, Thomas S. & Chamberlin, Jordan & Traub, Lulama & Sitko, N. & Muyanga, Milu & Yeboah, Felix & Nkonde, Chewe & Anseeuw, Ward & Chapoto, Anthony & Kachule, Richard, 2015. "Africa's Changing Farmland Ownership: The Rise of the Emergent Investor Farmer," 2015 Conference, August 9-14, 2015, Milan, Italy 212028, International Association of Agricultural Economists.
    12. Byela Tibesigwa & Martine Visser & Jane Turpie, 2017. "Climate change and South Africa’s commercial farms: an assessment of impacts on specialised horticulture, crop, livestock and mixed farming systems," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(2), pages 607-636, April.
    13. McArthur, John W. & McCord, Gordon C., 2017. "Fertilizing growth: Agricultural inputs and their effects in economic development," Journal of Development Economics, Elsevier, vol. 127(C), pages 133-152.
    14. Ayala Wineman & Thomas S. Jayne & Emma Isinika Modamba & Holger Kray, 2020. "The changing face of agriculture in Tanzania: Indicators of transformation," Development Policy Review, Overseas Development Institute, vol. 38(6), pages 685-709, November.
    15. Jayne, T.S. & Chamberlin, Jordan & Headey, Derek D., 2014. "Land pressures, the evolution of farming systems, and development strategies in Africa: A synthesis," Food Policy, Elsevier, vol. 48(C), pages 1-17.
    16. Chapoto, A. & Houssou, N. & Asante-Addo, C. & Mabiso, A., 2018. "Can smallholder farmers grow? Perspectives from the rise of indigenous small-scale farmers in Ghana," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277225, International Association of Agricultural Economists.
    17. Daniel Francois Meyer, 2019. "An Assessment Of The Importance Of The Agricultural Sector On Economic Growth And Development In South Africa," Proceedings of International Academic Conferences 9912288, International Institute of Social and Economic Sciences.
    18. Mellor, John W. & Malik, Sohail J., 2017. "The Impact of Growth in Small Commercial Farm Productivity on Rural Poverty Reduction," World Development, Elsevier, vol. 91(C), pages 1-10.
    19. Dorosh, Paul & Thurlow, James, 2014. "Can Cities or Towns Drive African Development? Economywide Analysis for Ethiopia and Uganda," World Development, Elsevier, vol. 63(C), pages 113-123.
    20. Steven Glover & Sam Jones, 2016. "Can commercial farming promote rural dynamism in sub-Saharan Africa? Evidence from Mozambique," WIDER Working Paper Series 120, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    land consolidation; consumption; Rwanda; first-difference;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:cesisp:0455. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vardan Hovsepyan (email available below). General contact details of provider: https://edirc.repec.org/data/cekthse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.