IDEAS home Printed from https://ideas.repec.org/h/eee/hagchp/5-51.html
   My bibliography  Save this book chapter

Efficiency and Equity Effects of Land Markets

Author

Listed:
  • Otsuka, Keijiro

Abstract

It is widely believed that land markets, including both land sales and tenancy markets, are neither efficient nor conducive to social equity. It is often argued that tenants, particularly share tenants, do not have proper incentives to work and invest, partly because of the disincentive effects of output sharing and partly because of the tenure insecurity. It is also widely accepted that land sales transactions tend to exacerbate the social equity and rural poverty by facilitating the concentration of land ownership by hands of a few wealthy landlords. Based on these presumptions, land reform programs have been implemented in a number of developing countries. This article critically reviews these presumptions both theoretically and empirically. Firstly, we identify why land tenancy transaction is more common than land sales transactions and why share tenancy is more common than leasehold tenancy. Secondly, we critically review the theories of share tenancy, tenure security, and adjustment costs of farm size. Thirdly, we empirically review the efficiency and equity effects of land markets as well as the impacts of conventional land reform programs. It has become clear from the literature review that land reform polices have generally failed to improve land use efficiency and social equity. It is also found that tenancy contracts, including share tenancy, are generally efficient and conducive to social justice. In conclusion, we propose to encourage tenancy transactions, in general, and share tenancy, in particular.

Suggested Citation

  • Otsuka, Keijiro, 2007. "Efficiency and Equity Effects of Land Markets," Handbook of Agricultural Economics, Elsevier.
  • Handle: RePEc:eee:hagchp:5-51
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/B7P5B-4NXHBYB-D/2/f29277083c081a2b7407d015a880aac1
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Yuko Nakano & Yuki Tanaka & Keijiro Otsuka, 2014. "To What Extent Do Improved Practices Increase Productivity of Small-Scale Rice Cultivation in A Rain-fed Area? : Evidence from Tanzania," GRIPS Discussion Papers 14-21, National Graduate Institute for Policy Studies.
    2. Roses, Joan R., 2015. "Spanish land reform in the 1930s: economic necessity or political opportunism?," LSE Research Online Documents on Economics 64498, London School of Economics and Political Science, LSE Library.
    3. Takashi Yamano & Yuki Tanaka & Raphael Gitau, 2010. "Haki Yetu (It’s Our Right): Determinants of Post-Election Violence in Kenya," GRIPS Discussion Papers 10-20, National Graduate Institute for Policy Studies.
    4. 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.
    5. repec:eee:wdevel:v:99:y:2017:i:c:p:122-140 is not listed on IDEAS
    6. Douglas Gollin & David Lagakos & Michael E. Waugh, 2014. "The Agricultural Productivity Gap," The Quarterly Journal of Economics, Oxford University Press, vol. 129(2), pages 939-993.
    7. 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.
    8. James Roumasset, 2010. "Wither the Economics of Agricultural Development?," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(1), pages 1-22, June.
    9. Falkowski, Jan, 2013. "Does it matter how much land your neighbour owns? The functioning of land markets in Poland from a social comparison perspective," Factor Markets Working Papers 171, Centre for European Policy Studies.
    10. Hoken, Hisatoshi, 2012. "Development of land rental market and its effect on household farming in rural China : an empirical study in Zhejiang Province," IDE Discussion Papers 323, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    11. Chamberlin, Jordan & Ricker-Gilbert, Jacob E., 2015. "What are the Drivers of Rural Land Rental Markets in sub-Saharan Africa, and how do they Impact Household Welfare? Evidence from Malawi and Zambia," 2015 Conference, August 9-14, 2015, Milan, Italy 211454, International Association of Agricultural Economists.
    12. Jikun Huang & Liangliang Gao & Scott Rozelle, 2012. "The effect of off-farm employment on the decisions of households to rent out and rent in cultivated land in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 4(1), pages 5-17, January.
    13. 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.
    14. Nakano, Yuko & Tanaka, Tuki & Otsuka, Keijiro, 2015. "To What Extent Does Modified System of Rice Intensification (SRI) Training Increase Productivity of Small-Scale Rice Cultivation in a Rain-Fed Area? Evidence from Tanzania," 2015 Conference, August 9-14, 2015, Milan, Italy 212521, International Association of Agricultural Economists.
    15. Arimoto, Yutaka, 2011. "The impact of farmland readjustment and consolidation on structural adjustment: The case of Niigata, Japan," CEI Working Paper Series 2011-3, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    16. Céline Bignebat & Laure Latruffe, 2009. "Twenty years of land reforms in Central and Eastern Europe: state of play and outlook," Working Papers SMART - LERECO 09-19, INRA UMR SMART-LERECO.
    17. 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.
    18. Ito, Junichi & Bao, Zongshun & Ni, Jing, 2016. "Land rental development via institutional innovation in rural Jiangsu, China," Food Policy, Elsevier, vol. 59(C), pages 1-11.

    More about this item

    Keywords

    Farmers; Farm Production and Farm Markets;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

    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:eee:hagchp:5-51. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description .

    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.

    We have no references for this item. You can help adding them by using 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.