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Sharecropping efficiency in Ethiopia: threats of eviction and kinship

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  • Menale Kassie
  • Stein Holden

Abstract

We tested a theoretical model with the Marshallian inefficiency (H1) and threat of eviction (H2) hypotheses having opposite effects on land productivity on sharecropped plots. The model also assumes that kinship contracts may eliminate or reduce the Marshallian inefficiency (H3) and threat of eviction (H4) effects on land productivity. Our empirical findings were consistent with H2 and H4 being true. We found higher land productivity on sharecropped plots than on share tenants' own plots and higher land productivity on sharecropped plots of nonkin than of kin tenants. The nature of the data allowed controlling for unobservable household characteristics through household fixed effects and for observable plot characteristics. Analyses with and without plot characteristics revealed that these findings were stronger with plot characteristics than without them. Based on the plausible assumption that observable plot characteristics are positively correlated with unobservable plot characteristics this strengthens our conclusion. The results are also supported by first-order stochastic dominance analysis. Sharecropped plots' output value distribution unambiguously dominated the output value distribution from share tenants' own plots. Nonkin sharecropped plots' output value distribution also first-order stochastically dominated the output value distribution from kin sharecrop plots. Copyright 2007 International Association of Agricultural Economists.

Suggested Citation

  • Menale Kassie & Stein Holden, 2007. "Sharecropping efficiency in Ethiopia: threats of eviction and kinship," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 179-188, September.
  • Handle: RePEc:bla:agecon:v:37:y:2007:i:2-3:p:179-188
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    References listed on IDEAS

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    Cited by:

    1. Beyene, Abebe D. & Bezabih, Mintewab & Gebreegziabher, Zenebe, 2012. "Contract Duration under Incomplete Land Ownership Rights: Empirical Evidence from Rural Ethiopia," Discussion Papers dp-12-09-efd, Resources For the Future.
    2. repec:eee:jfpoli:v:69:y:2017:i:c:p:68-81 is not listed on IDEAS
    3. Deininger, Klaus & Ali, Daniel Ayalew & Alemu, Tekie, 2011. "Productivity effects of land rental markets in Ethiopia : Evidence from a matched tenant-landlord sample," Policy Research Working Paper Series 5727, The World Bank.
    4. Mekonnen, Tigist, 2017. "Willingness to pay for agricultural risk insurance as a strategy to adapt climate change," MERIT Working Papers 028, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Kassie, Menale & Jaleta, Moti & Shiferaw, Bekele & Mmbando, Frank & Muricho, Geoffrey, 2012. "Plot and Household-Level Determinants of Sustainable Agricultural Practices in Rural Tanzania," Discussion Papers dp-12-02-efd, Resources For the Future.
    6. Ghebru, Hosaena H. & Holden, Stein T., 2012. "Reverse Share-Tenancy and Marshallian Inefficiency: Bargaining Power of Landowners and the Sharecroppers’ Productivity," CLTS Working Papers 2/12, Norwegian University of Life Sciences, Centre for Land Tenure Studies.
    7. Hotopp, Henning & Mußhoff, Oliver, 2012. "Can rent adjustment clauses reduce the income risk of farms?," International Journal of Agricultural Management, Institute of Agricultural Management;International Farm Management Association, vol. 1(4), July.
    8. Arslan, Aslihan & Belotti, Federico & Lipper, Leslie, 2017. "Smallholder productivity and weather shocks: Adoption and impact of widely promoted agricultural practices in Tanzania," Food Policy, Elsevier, vol. 69(C), pages 68-81.
    9. Bellemare, Marc F., 2010. "Insecure Land Rights and Share Tenancy in Madagascar," MPRA Paper 23640, University Library of Munich, Germany.
    10. Niee Foning, Maxime & Kane, Gilles Quentin & Ambagna, Jean Joël & Fondo, Sikod & Abayomi Oyekale, Samuel, 2013. "The effect of incomplete land tenure contracts on agricultural investment and productivity in Cameroon," MPRA Paper 62752, University Library of Munich, Germany.
    11. Jeetendra P. Aryal & Stein T. Holden, 2012. "Livestock and land share contracts in a Hindu society," Agricultural Economics, International Association of Agricultural Economists, vol. 43(5), pages 593-606, September.
    12. Kassie, Menale & Jaleta, Moti & Shiferaw, Bekele & Mmbando, Frank & Mekuria, Mulugetta, 2013. "Adoption of interrelated sustainable agricultural practices in smallholder systems: Evidence from rural Tanzania," Technological Forecasting and Social Change, Elsevier, vol. 80(3), pages 525-540.
    13. Ndoye Niane, Aifa Fatimata & Burger, Kees & Bulte, Erwin H., 2010. "Horticultural Households Profit Optimization and the Efficiency of Labour Contract Choice," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95776, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
    14. Mehretie Belay & Assefa Abegaz & Woldeamlak Bewket, 2017. "Livelihood options of landless households and land contracts in north-west Ethiopia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(1), pages 141-164, February.
    15. Fenske, James, 2011. "Land tenure and investment incentives: Evidence from West Africa," Journal of Development Economics, Elsevier, vol. 95(2), pages 137-156, July.
    16. repec:pal:eurjdr:v:29:y:2017:i:2:d:10.1057_ejdr.2016.9 is not listed on IDEAS
    17. Marc F. Bellemare, 2012. "Insecure Land Rights and Share Tenancy: Evidence from Madagascar," Land Economics, University of Wisconsin Press, vol. 88(1), pages 155-180.
    18. Hagos, Hosaena Gebru & Holden, Stein T., 2013. "Reverse-share-tenancy and Marshallian Inefficiency: Landowners’ bargaining power and sharecroppers’ productivity," IFPRI discussion papers 1270, International Food Policy Research Institute (IFPRI).
    19. Wang, Hui & Riedinger, Jeffrey & Jin, Songqing, 2015. "Land documents, tenure security and land rental development: Panel evidence from China," China Economic Review, Elsevier, vol. 36(C), pages 220-235.
    20. Holden, Stein T,, 2017. "Policies for Improved Food Security: - The Roles of Land Tenure Policies and Land Markets," CLTS Working Papers 9/17, Norwegian University of Life Sciences, Centre for Land Tenure Studies.
    21. Kassie, Menale & Jaleta, Moti & Shiferaw, Bekele A. & Mmbando, Frank & Mekuria, Mulugetta, 2012. "Interdependence in Farmer Technology Adoption Decisions in Smallholder Systems: Joint Estimation of Investments in Sustainable Agricultural Practices in Rural Tanzania," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126791, International Association of Agricultural Economists.
    22. Holden, Stein T. & Ali, Daniel & Deininger, Klaus & Hilhorst, Thea, 2016. "A Land Tenure Module for LSMS," CLTS Working Papers 1/16, Norwegian University of Life Sciences, Centre for Land Tenure Studies.

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