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Mechanisms for Land Transfer in Ethiopia: implications for Efficiency, Equity and Non-Farm Development

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  • Deininger, Klaus
  • Jin, Songqing
  • Berhanu, Adenw
  • Samuel, Gebre-Selassie

Abstract

We use data from Ethiopia to empirically assess determinants of participation in land rental markets, compare these to those of administrative land reallocation, and make inferences on the likely impact of households’ expectations regarding future redistribution. Results indicate that rental markets outperform administrative reallocation in terms of efficiency and poverty. Households who have part-time jobs in the off-farm sector are significantly more likely to expect land to be taken away from them through administrative means. Eliminating the scope for administrative land reallocation may thus a pre-condition for more vigorous development of the off-farm sector.

Suggested Citation

  • Deininger, Klaus & Jin, Songqing & Berhanu, Adenw & Samuel, Gebre-Selassie, 2005. "Mechanisms for Land Transfer in Ethiopia: implications for Efficiency, Equity and Non-Farm Development," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 10(01), pages 1-98, May.
    • Handle: RePEc:ags:eeaeje:249935
    DOI: 10.22004/ag.econ.249935
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    References listed on IDEAS

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