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Land reforms, poverty reduction, and economic growth : evidence from India

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Author Info

  • Deininger, Klaus
  • Jin, Songqing
  • Nagarajan, Hari K.

Abstract

Recognition of the importance of institutions that provide security of property rights and relatively equal access to economic resources to a broad cross-section of society has renewed interest in the potential of asset redistribution, including land reforms. Empirical analysis of the impact of such policies is, however, scant and often contradictory. This paper uses panel household data from India, together with state-level variation in the implementation of land reform, to address some of the deficiencies of earlier studies. The results suggest that land reform had a significant and positive impact on income growth and accumulation of human and physical capital. The paper draws policy implications, especially from the fact that the observed impact of land reform seems to have declined over time.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4448.

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Date of creation: 01 Dec 2007
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Handle: RePEc:wbk:wbrwps:4448

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Related research

Keywords: Rural Poverty Reduction; Political Economy; Rural Development Knowledge&Information Systems; Municipal Housing and Land; Rural Land Policies for Poverty Reduction;

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References

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  1. Conning, Jonathan H. & Robinson, James A., 2007. "Property rights and the political organization of agriculture," Journal of Development Economics, Elsevier, vol. 82(2), pages 416-447, March.
  2. Bourguignon, Francois & Verdier, Thierry, 2000. "Oligarchy, democracy, inequality and growth," Journal of Development Economics, Elsevier, vol. 62(2), pages 285-313, August.
  3. Guinnane, Timothy W & Miller, Ronald I, 1997. "The Limits to Land Reform: The Land Acts in Ireland, 1870-1909," Economic Development and Cultural Change, University of Chicago Press, vol. 45(3), pages 591-612, April.
  4. Deininger, Klaus & Jin, Songqing & Nagarajan, Hari K., 2007. "Efficiency and equity impacts of rural land rental restrictions : evidence from India," Policy Research Working Paper Series 4324, The World Bank.
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  8. Robert Eastwood & Johann Kirsten & Michael Lipton, 2006. "Premature deagriculturalisation? Land inequality and rural dependency in Limpopo province, South Africa," The Journal of Development Studies, Taylor and Francis Journals, vol. 42(8), pages 1325-1349.
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  11. Bardhan, Pranab & Bowles, Samuel & Gintis, Herbert, 2000. "Wealth inequality, wealth constraints and economic performance," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 10, pages 541-603 Elsevier.
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  14. Benjamin, Dwayne, 1995. "Can unobserved land quality explain the inverse productivity relationship?," Journal of Development Economics, Elsevier, vol. 46(1), pages 51-84, February.
  15. Oriana Bandiera, 2003. "Land Reform, the Market for Protection, and the Origins of the Sicilian Mafia: Theory and Evidence," Journal of Law, Economics and Organization, Oxford University Press, vol. 19(1), pages 218-244, April.
  16. Cardenas, Juan-Camilo, 2003. "Real wealth and experimental cooperation: experiments in the field lab," Journal of Development Economics, Elsevier, vol. 70(2), pages 263-289, April.
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  19. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772 Elsevier.
  20. Deininger, Klaus & Ali, Daniel Ayalew, 2007. "Do overlapping property rights reduce agricultural investment ? evidence from Uganda," Policy Research Working Paper Series 4310, The World Bank.
  21. Saturnino Borras, 2005. "Can Redistributive Reform be Achieved via Market-Based Voluntary Land Transfer Schemes? Evidence and Lessons from the Philippines," The Journal of Development Studies, Taylor and Francis Journals, vol. 41(1), pages 90-134.
  22. Carter, Michael R. & Zimmerman, Frederick J., 2000. "The dynamic cost and persistence of asset inequality in an agrarian economy," Journal of Development Economics, Elsevier, vol. 63(2), pages 265-302, December.
  23. Elizabeth Stanton & Peter Rosset & James Boyce, 2005. "Land Reform and Sustainable Development," Working Papers wp98, Political Economy Research Institute, University of Massachusetts at Amherst.
  24. Abhijit V. Banerjee & Paul J. Gertler & Maitreesh Ghatak, 2002. "Empowerment and Efficiency: Tenancy Reform in West Bengal," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 239-280, April.
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Citations

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Cited by:
  1. World Bank, 2007. "India - Land Policies for Growth and Poverty Reduction," World Bank Other Operational Studies 7818, The World Bank.
  2. Michele De Benedictis, 2008. "Peasant Economy: Yesterday and Today," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, July.
  3. Deininger, Klaus & Jin, Songqing & Yadav, Vandana, 2012. "Does sharecropping affect productivity and long-term investment ? evidence from West Bengal's tenancy reforms," Policy Research Working Paper Series 6293, The World Bank.
  4. Gersbach, Hans & Siemers, Lars-H. R., 2010. "Land Reforms And Economic Development," Macroeconomic Dynamics, Cambridge University Press, vol. 14(04), pages 527-547, September.
  5. Calì, Massimiliano & Sen, Kunal, 2011. "Do Effective State Business Relations Matter for Economic Growth? Evidence from Indian States," World Development, Elsevier, vol. 39(9), pages 1542-1557, September.
  6. Deininger, Klaus & Yadav, Vandana, 2011. "Long-term Effects of Land Reform on Human Capital Accumulation: Evidence from West Bengal," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  7. Deininger, Klaus W. & Jin, Songqing & Yadav, Vandana, 2008. "Impact of Land Reform on Productivity, Land Value and Human Capital Investment: Household Level Evidence from West Bengal," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6277, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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