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Impacts of Land Rental Markets on Rural Poverty in Kenya

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  • Jin, Songqing
  • Jayne, Thomas S.

Abstract

This study uses panel data from 1,142 Kenya smallholder households over four survey periods to examine the determinants of participation in land rental markets and to quantify the impact of renting land on households’ crop income and total income. We find that land rental markets in Kenya enhance productivity and are equitable. The results are consistent across different estimation methods and model specifications. Dynamic panel models were used to assess the impact of rental participation on households’ crop income and total income. After controlling for the endogeneity of rental market participation and the persistent effects of lagged income, we find that the decision to rent land increased tenant households’ net crop (net total) income by 25.1 (6.6) percent. These percentage gains are inversely related to household landholding size. Hence, land rental markets in Kenya appear to play an important role in raising incomes and reducing poverty for land-constrained smallholder farmers.

Suggested Citation

  • Jin, Songqing & Jayne, Thomas S., 2011. "Impacts of Land Rental Markets on Rural Poverty in Kenya," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103907, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea11:103907
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    File URL: http://purl.umn.edu/103907
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    Cited by:

    1. Viaggi, Davide & Bartolini, Fabio & Puddu, Marco & Raggi, Meri, 2013. "Farm/Household-level Simulation Results of Testing Policy and Other Scenarios," Factor Markets Working Papers 166, Centre for European Policy Studies.
    2. Viaggi, D. & Bartolini, Fabio & Puddu, M. & Raggi, M., 2013. "Impact of post-2013 CAP reform on land markets: evidence from farm surveys and farm-level modelling," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152376, International Agricultural Trade Research Consortium.
    3. Puddu, Marco & Bartolini, Fabio & Viaggi, Davide, 2012. "Simulation of Land Use and Investment Behaviour under Different Policy Scenarios: Results of the extended farm/household model," Working Papers 127979, Factor Markets, Centre for European Policy Studies.

    More about this item

    Keywords

    Land rental market; Kenya; Income; Poverty; Dynamic model; Agricultural and Food Policy; International Development; Land Economics/Use; O12; Q13; Q12; Q15;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • 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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