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Land Markets In Uganda: Incidence, Impact And Evolution Over Time

  • Deininger, Klaus W.
  • Mpuga, Paul

Although there is broad agreement that well functioning land rental markets will play an important role to increase productivity and household welfare as agrarian economies develop, evidence from Africa on the actual performance and impact of such markets is limited. We use data from Uganda to test for differences in the performance of rental, as compared to sales markets and their evolution over time, based on a framework where markets are affected by differences in ability and imperfections in rural labor and capital markets. We find that land markets are very active, that land rental but not sales markets transfer land to more efficient and relatively poor producers thereby providing an opportunity for the landless to access land, and that rental market activity has increased recently with economic growth. Despite land prices in some regions being above the net present value of land we find no evidence for sales markets leading to land concentration and conclude that, rather than imposing administrative restrictions, government should aim to improve access to alternative savings instruments.

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Paper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25809.

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Date of creation: 2003
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Handle: RePEc:ags:iaae03:25809
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  7. Andre, Catherine & Platteau, Jean-Philippe, 1998. "Land relations under unbearable stress: Rwanda caught in the Malthusian trap," Journal of Economic Behavior & Organization, Elsevier, vol. 34(1), pages 1-47, January.
  8. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-37, October.
  9. Meredith J. Soule & Abebayehu Tegene & Keith D. Wiebe, 2000. "Land Tenure and the Adoption of Conservation Practices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 993-1005.
  10. Frank Place & S. E. Migot-Adholla, 1997. "The Economic Effects of Land Registration on Smallholder Farms in Kenya: Evidence from Nyeri and Kakamega Districts," Land Economics, University of Wisconsin Press, vol. 73(3), pages 360-373.
  11. Otsuka, Keijiro & Place, Frank, 2001. "Land tenure and natural resource management," Food policy statements 34, International Food Policy Research Institute (IFPRI).
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