Land tenure and productivity: Farm level evidence from Papua New Guinea
AbstractDoes land tenure form affect farm level productivity? The answer, from farm level data for oil palm from the Hoskins project in West New Britain province of Papua New Guinea, is in the affirmative. Analysis of farm level output, controlling for all measured inputs, shows systematic differences in productivity across three land tenure types; namely, farms under customary purchase agreements (CP), those under the land settlement scheme (LSS), and those under village owned land schemes (VOP). The evidence is that productivity is higher under the CP and LSS schemes compared to the VOP arrangement. The empirics suggests that the higher productivity is due to benefits from economies of scale enjoyed by farms with improved tenure security and from the absence of sharing of income and harvesting effort that is present on farms with insecure tenure.
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Bibliographic InfoPaper provided by International and Development Economics in its series International and Development Economics Working Papers with number idec08-02.
Length: 31 pages
Date of creation: 2008
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Other versions of this item:
- Satish Chand & Charles Yala, 2009. "Land Tenure and Productivity: Farm-Level Evidence from Papua New Guinea," Land Economics, University of Wisconsin Press, vol. 85(3), pages 442-453.
- 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-AGR-2008-08-21 (Agricultural Economics)
- NEP-ALL-2008-08-21 (All new papers)
- NEP-DEV-2008-08-21 (Development)
- NEP-EFF-2008-08-21 (Efficiency & Productivity)
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