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Communal land and agricultural productivity

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  • Gottlieb, Charles
  • Grobovšek, Jan

Abstract

Communal land tenure is prevalent across many developing countries. It implements a “use it or lose it” principle that allows owners to farm their land but restricts their right to transfer it away. This paper measures the distortionary impact of communal land in a dynamic general equilibrium model of occupational selection, calibrated to Ethiopia. We find that lifting communal land tenure increases GDP by 9% and lowers agricultural employment by 18 percentage points. While agricultural productivity increases, that of non-agriculture drops. Communal land tenure rationalizes about one-half of the relative agricultural productivity gap in the poorest economies. Its impact on aggregate productivity, though, is comparatively minor.

Suggested Citation

  • Gottlieb, Charles & Grobovšek, Jan, 2019. "Communal land and agricultural productivity," Journal of Development Economics, Elsevier, vol. 138(C), pages 135-152.
  • Handle: RePEc:eee:deveco:v:138:y:2019:i:c:p:135-152
    DOI: 10.1016/j.jdeveco.2018.11.001
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    More about this item

    Keywords

    Agricultural productivity; Growth and development; Misallocation; Land; Africa; Ethiopia;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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