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Determinants and Consequences of Land Sales Market Participation: Panel Evidence from India

  • Deininger, Klaus W.
  • Jin, Songqing
  • Nagarajan, Hari K.

Although opinions on impacts of land market transfers are sharply divided, few studies explore the welfare- and productivity impact of land markets on a larger scale. We use a large Indian panel spanning almost 20 years, together with a climatic shock (rainfall) indicator, to assess the productivity- and equity-impact of market-mediated land transfers (sale and purchase) as compared to non-market ones (inheritance). While frequent shocks increase land market activity, an effect that is mitigated by presence of safety nets and banks- land sales markets improved productivity and helped purchasers, many of them formerly landless, to accumulate non-land assets and significantly enhance their welfare.

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File URL: http://purl.umn.edu/9824
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN with number 9824.

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Date of creation: 2007
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Handle: RePEc:ags:aaea07:9824
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