IDEAS home Printed from
   My bibliography  Save this paper

Determinants of the Choice of Agricultural Tenancy Contracts in Rural Bangladesh


  • Ahmed, Sharmina


Participation in the informal land market by farmers is always common in land scarce rural Bangladesh in response to failure of implementation of administratively based land reform system to meet increasing demand for cultivable land and to minimize discrepancy in distribution of factors at the farm level. The objective of the present study is to jointly determine the socio-economic factors underlying decision to lease-in or lease-out land and conditional on these decisions, tenant-land lord's choice of accepting and offering of share versus fixed rent contracts in rural Bangladesh agriculture. The focus is on the risk averseness and moral hazard problem for tenant land lord respectively. An empirical model of contract choice for both parties (tenants and land lords) is compared against a data set from a sample survey of IRRI and finds a mixed evidence of risk averseness among tenants and moral hazard problem among land lords. However, we find attributes of the land lord plays more important part to offer either a sharecropping contract or fixed rent contract than tenant's attributes to choose a contract between two alternatives. This indicates a monopoly power of land lords in Bangladesh in the informal tenancy market.

Suggested Citation

  • Ahmed, Sharmina, 2011. "Determinants of the Choice of Agricultural Tenancy Contracts in Rural Bangladesh," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100529, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare11:100529

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Farm Management;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:ags:aare11:100529. 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: (AgEcon Search). General contact details of provider: .

    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.