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Land Reforms in the Presence of Monitoring Costs and International Trade

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  • Chau, Nancy H

Abstract

This paper elucidates the implications of transaction costs in agrarian labor hiring activities in a two-sector model of international trade and identifies a link between the size distribution of land and intersectoral allocation of productive inputs. Ceteris paribus, a more unequal distribution of land increases the amount of outmigration from agriculture, a shrinkage of the production possibility set, and a decrease (increase) in the volume of trade if and only if agriculture is the exportable (importable) sector. In addition, nonintervention in factor and commodity markets is constrained optimal only when land redistribution is not a feasible policy option. Copyright 1998 by Blackwell Publishing Ltd.

Suggested Citation

  • Chau, Nancy H, 1998. "Land Reforms in the Presence of Monitoring Costs and International Trade," Review of International Economics, Wiley Blackwell, vol. 6(4), pages 564-579, November.
    • Handle: RePEc:bla:reviec:v:6:y:1998:i:4:p:564-79
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    Cited by:

    1. World Bank, 2007. "India - Land Policies for Growth and Poverty Reduction," World Bank Publications - Reports 7818, The World Bank Group.
    2. K. Deininger & S. Jin & H. K. Nagarajan, 2009. "Land Reforms, Poverty Reduction, and Economic Growth: Evidence from India," Journal of Development Studies, Taylor & Francis Journals, vol. 45(4), pages 496-521.
    3. World Bank, 2007. "India : Land Policies for Growth and Poverty Reduction," World Bank Publications - Books, The World Bank Group, number 15791, December.
    4. Deininger, Klaus & Yadav, Vandana, 2011. "Long-term Effects of Land Reform on Human Capital Accumulation: Evidence from West Bengal," WIDER Working Paper Series 082, World Institute for Development Economic Research (UNU-WIDER).
    5. Klaus W. Deininger & Songqing Jin & Vandana Yadav, 2011. "Long-term Effects of Land Reform on Human Capital Accumulation: Evidence from West Bengal," WIDER Working Paper Series wp-2011-082, World Institute for Development Economic Research (UNU-WIDER).
    6. 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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