IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v52y2021i6p1013-1028.html
   My bibliography  Save this article

Can rainfall shocks enhance access to rented land? Evidence from Malawi

Author

Listed:
  • Sarah E. Tione
  • Stein T. Holden

Abstract

This study investigates the spatial downside and upside rainfall shock effects on tenant household renting behavior and access to rented land in the short‐term and medium‐term. We model the tenant households’ demand decisions within the state‐contingent framework with renting‐in of land as a risky input choice. Our data are a 3‐year balanced household panel, combined with the corresponding seasonal district‐wise rainfall shock data across regional agro‐ecological zones in Malawi. Using the correlated and dynamic random effects panel probit and Tobit models that control for unobserved heterogeneity, spatial heterogeneities were revealed. Land rental markets were found to be more active in the Central Region of Malawi with intermediate population density. The 1‐year and 2‐year lagged downside rainfall shocks enhanced tenant households’ land access. For the more land constrained Southern Region of Malawi, with less prevalence of land rental markets, the 2‐year lagged downside rainfall shock is associated with less access to rented land. The revealed dynamic and spatial effects of covariate rainfall shocks on land rental market activity call for further studies on how policies could facilitate rental markets to enhance land‐use efficiency and land access for the most land‐constrained households in Malawi.

Suggested Citation

  • Sarah E. Tione & Stein T. Holden, 2021. "Can rainfall shocks enhance access to rented land? Evidence from Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 1013-1028, November.
    • Handle: RePEc:bla:agecon:v:52:y:2021:i:6:p:1013-1028
    DOI: 10.1111/agec.12663
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/agec.12663
    Download Restriction: no
    File URL: https://libkey.io/10.1111/agec.12663?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.
    2. Winters, Paul & Davis, Benjamin & Carletto, Gero & Covarrubias, Katia & Quiñones, Esteban J. & Zezza, Alberto & Azzarri, Carlo & Stamoulis, Kostas, 2009. "Assets, Activities and Rural Income Generation: Evidence from a Multicountry Analysis," World Development, Elsevier, vol. 37(9), pages 1435-1452, September.
    3. Katengeza, Samson P. & Holden, Stein T. & Fisher, Monica, 2019. "Use of Integrated Soil Fertility Management Technologies in Malawi: Impact of Dry Spells Exposure," Ecological Economics, Elsevier, vol. 156(C), pages 134-152.
    4. Stein T. Holden & John Quiggin, 2017. "Climate risk and state-contingent technology adoption: shocks, drought tolerance and preferences," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(2), pages 285-308.
    5. Josephson, Anna Leigh & Ricker-Gilbert, Jacob & Florax, Raymond J.G.M., 2014. "How does population density influence agricultural intensification and productivity? Evidence from Ethiopia," Food Policy, Elsevier, vol. 48(C), pages 142-152.
    6. Chamberlain, Gary, 1982. "Multivariate regression models for panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 5-46, January.
    7. Jordan Chamberlin & Jacob Ricker-Gilbert, 2016. "Participation in Rural Land Rental Markets in Sub-Saharan Africa: Who Benefits and by How Much? Evidence from Malawi and Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1507-1528.
    8. Menasbo Gebru & Stein T. Holden & Mesfin Tilahun, 2019. "Tenants’ land access in the rental market: evidence from northern Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 50(3), pages 291-302, May.
    9. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, December.
    10. Holden, Stein T. & Deininger, Klaus & Ghebru, Hosaena, 2007. "Impact of Land Certification on Land Rental Market Participation in Tigray Region, Northern Ethiopia," MPRA Paper 5211, University Library of Munich, Germany.
    11. Sarah Alobo Loison, 2015. "Rural Livelihood Diversification in Sub-Saharan Africa: A Literature Review," Journal of Development Studies, Taylor & Francis Journals, vol. 51(9), pages 1125-1138, September.
    12. Stein T. Holden & Keijiro Otsuka & Klaus Deininger (ed.), 2013. "Land Tenure Reform in Asia and Africa," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-34381-9.
    13. Ricker-Gilbert, Jacob & Jumbe, Charles & Chamberlin, Jordan, 2014. "How does population density influence agricultural intensification and productivity? Evidence from Malawi," Food Policy, Elsevier, vol. 48(C), pages 114-128.
    14. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank Group, vol. 17(2), pages 141-166, September.
    15. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    16. Kusunose, Yoko & Lybbert, Travis J., 2014. "Coping with Drought by Adjusting Land Tenancy Contracts: A Model and Evidence from Rural Morocco," World Development, Elsevier, vol. 61(C), pages 114-126.
    17. Jacob Ricker-Gilbert & Jordan Chamberlin, 2018. "Transaction Costs, Land Rental Markets, and Their Impact on Youth Access to Agriculture in Tanzania," Land Economics, University of Wisconsin Press, vol. 94(4), pages 541-555.
    18. Paul A. Lewin & Monica Fisher & Bruce Weber, 2012. "Do rainfall conditions push or pull rural migrants: evidence from Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 43(2), pages 191-204, March.
    19. Sarah Ephrida Tione, 2020. "Agricultural Resources and Trade Strategies: Response to Falling Land-to-Labor Ratios in Malawi," Land, MDPI, vol. 9(12), pages 1-32, December.
    20. 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.
    21. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    22. Blessings Chinsinga, 2011. "The politics of land reforms in Malawi: The case of the Community Based Rural Land Development Programme (CBRLDP)," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(3), pages 380-393, April.
    23. Gebrehaweria Gebregziabher & Stein T. Holden, 2011. "Distress rentals and the land rental market as a safety net: contract choice evidence from Tigray, Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 42, pages 45-60, November.
    24. Jacob Ricker‐Gilbert & Jordan Chamberlin & Joseph Kanyamuka & Charles B.L. Jumbe & Rodney Lunduka & Stevier Kaiyatsa, 2019. "How do informal farmland rental markets affect smallholders’ well‐being? Evidence from a matched tenant–landlord survey in Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 50(5), pages 595-613, September.
    25. Deininger, Klaus & Savastano, Sara & Xia, Fang, 2017. "Smallholders’ land access in Sub-Saharan Africa: A new landscape?," Food Policy, Elsevier, vol. 67(C), pages 78-92.
    26. Asfaw, Solomon & Scognamillo, Antonio & Caprera, Gloria Di & Sitko, Nicholas & Ignaciuk, Adriana, 2019. "Heterogeneous impact of livelihood diversification on household welfare: Cross-country evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 117(C), pages 278-295.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Makate, Clifton & Angelsen, Arild & Holden, Stein Terje & Westengen, Ola Tveitereid, 2023. "Evolution of farm-level crop diversification and response to rainfall shocks in smallholder farming: Evidence from Malawi and Tanzania," Ecological Economics, Elsevier, vol. 205(C).
    2. Amolegbe, Khadijat Busola & Fontep, Eugenie Rose & Ahodode, Bernadin Géraud Comlan & Pagal, Emmanuelle Dorcas Mbanga & Ardelkrim, Araar, 2023. "Gendered Effects of Crop Diversification and Climate Shocks on Household Food Security Status in Nigeria," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334551, Agricultural Economics Society - AES.

    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. Sarah Ephrida Tione, 2020. "Agricultural Resources and Trade Strategies: Response to Falling Land-to-Labor Ratios in Malawi," Land, MDPI, vol. 9(12), pages 1-32, December.
    2. Makate, Clifton & Angelsen, Arild & Holden, Stein Terje & Westengen, Ola Tveitereid, 2023. "Evolution of farm-level crop diversification and response to rainfall shocks in smallholder farming: Evidence from Malawi and Tanzania," Ecological Economics, Elsevier, vol. 205(C).
    3. Makate, Clifton & Angelsen, Arild & Holden, Stein Terje & Westengen, Ola Tveitereid, 2022. "Crops in crises: Shocks shape smallholders' diversification in rural Ethiopia," World Development, Elsevier, vol. 159(C).
    4. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2020. "Crop diversity, household welfare and consumption smoothing under risk: Evidence from rural Uganda," World Development, Elsevier, vol. 125(C).
    5. Abay, Kibrom A. & Chamberlin, Jordan & Berhane, Guush, 2021. "Are land rental markets responding to rising population pressures and land scarcity in sub-Saharan Africa?," Land Use Policy, Elsevier, vol. 101(C).
    6. Kijima, Yoko & Tabetando, Rayner, 2020. "Efficiency and equity of rural land markets and the impact on income: Evidence in Kenya and Uganda from 2003 to 2015," Land Use Policy, Elsevier, vol. 91(C).
    7. Nancy McCarthy & Talip Kilic & Alejandro de la Fuente & Joshua M. Brubaker, 2018. "Shelter from the Storm? Household-Level Impacts of, and Responses to, the 2015 Floods in Malawi," Economics of Disasters and Climate Change, Springer, vol. 2(3), pages 237-258, October.
    8. Verkaart, Simone & Munyua, Bernard G. & Mausch, Kai & Michler, Jeffrey D., 2017. "Welfare impacts of improved chickpea adoption: A pathway for rural development in Ethiopia?," Food Policy, Elsevier, vol. 66(C), pages 50-61.
    9. Adjognon, Serge G. & Liverpool-Tasie, Lenis Saweda O. & Reardon, Thomas A., 2017. "Agricultural input credit in Sub-Saharan Africa: Telling myth from facts," Food Policy, Elsevier, vol. 67(C), pages 93-105.
    10. Ricker-Gilbert, Jacob & Lunduka, Rodney W. & Kanyamuka, Joseph Samuel & Jumbe, Charles & Kaiyatsa, Stevier & Chamberlin, Jordan, 2017. "Do Farm Land Rental Markets Really Promote Efficiency, Equity and Investment in Smallholder African Agriculture? Evidence from a Matched Tenant-Landlord Survey in Malawi," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258391, Agricultural and Applied Economics Association.
    11. Kibrom A. Abay & Leah E. M. Bevis & Christopher B. Barrett, 2021. "Measurement Error Mechanisms Matter: Agricultural Intensification with Farmer Misperceptions and Misreporting," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 498-522, March.
    12. Shaikh M. S. U. Eskander & Edward B. Barbier, 2023. "Adaptation to Natural Disasters through the Agricultural Land Rental Market: Evidence from Bangladesh," Land Economics, University of Wisconsin Press, vol. 99(1), pages 141-160.
    13. Gebru, Menasbo & Holden, Stein T. & Tilahun, Mesfin, 2017. "Can the land rental market facilitate smallholder commercialization? Evidence from northern Ethiopia," CLTS Working Papers 10/17, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 21 Oct 2019.
    14. Gebru, Menasbo & Holden , Stein T. & Alfnes, Frode, 2020. "Adoption of agricultural technologies in the semi-arid northern Ethiopia: A Panel Data Analysis," CLTS Working Papers 3/20, Norwegian University of Life Sciences, Centre for Land Tenure Studies.
    15. Clifton Makate & Marshall Makate, 2022. "Do Rainfall Shocks Prompt Commercial Input Purchases Amongst Smallholder Farmers in Diverse Regions and Environments in Malawi?," Sustainability, MDPI, vol. 14(22), pages 1-31, November.
    16. Holden, Stein T. & Tilahun, Mesfin, 2021. "Are land-poor youth accessing rented land? Evidence from northern Ethiopia," Land Use Policy, Elsevier, vol. 108(C).
    17. Antonelli, Chiara & Coromaldi, Manuela & Pallante, Giacomo, 2022. "Crop and income diversification for rural adaptation: Insights from Ugandan panel data," Ecological Economics, Elsevier, vol. 195(C).
    18. Menasbo Gebru & Stein T. Holden & Frode Alfnes, 2021. "Adoption analysis of agricultural technologies in the semiarid northern Ethiopia: a panel data analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-16, December.
    19. Adamie, Birhanu Addisu, 2021. "Land property rights and household take-up of development programs: Evidence from land certification program in Ethiopia," World Development, Elsevier, vol. 147(C).
    20. Arnd Kölling & Claus Schnabel, 2022. "Owners, external managers and industrial relations in German establishments," British Journal of Industrial Relations, London School of Economics, vol. 60(2), pages 424-443, June.

    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

    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:bla:agecon:v:52:y:2021:i:6:p:1013-1028. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.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.