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Off-farm work, land tenancy contracts and investment in soil conservation measures in rural Pakistan

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  • Rakhshanda Kousar
  • Awudu Abdulai

Abstract

type="main" xml:id="ajar12125-abs-0001"> This study examines the impacts of participation in off-farm work and land tenancy contracts on the intensity of investment in soil-improving measures and farm productivity. A multivariate Tobit model that accounts for potential endogeneity between the intensity of investment and the off-farm work and tenancy contract variables is estimated for 341 rural households in Punjab province of Pakistan. An instrumental variable approach is also used to analyse the impact of tenancy contract and off-farm work on farm productivity. The empirical results show that participation in off-farm work and tenure security tends to increase the intensity of investment in long-term soil-improving measures. We also find that increases in off-farm work and tenure security exert significant and positive effects on farm productivity.

Suggested Citation

  • Rakhshanda Kousar & Awudu Abdulai, 2016. "Off-farm work, land tenancy contracts and investment in soil conservation measures in rural Pakistan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(2), pages 307-325, April.
  • Handle: RePEc:bla:ajarec:v:60:y:2016:i:2:p:307-325
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    File URL: http://hdl.handle.net/10.1111/ajar.2016.60.issue-2
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