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Communal Land and Agricultural Productivity

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  • Charles Gottlieb

    () (University of Cambridge
    Centre for Macroeconomics (CFM))

  • Jan Grobovšek

    () (School of Economics University of Edinburgh)

Abstract

Communal land tenure regimes are perceived as an obstacle to agricultural productivity in Sub-Saharan Africa. Our general equilibrium selection model suggests that such land tenure arrangements can indeed lower nominal productivity in agriculture relative to non-agriculture, by some 25%. Real agricultural productivity, employment and GDP, however, are only marginally affected. Highly distortionary policies need not have substantial bite when individuals strategically respond and cross-sectoral terms of trade adjust strongly. Our model, calibrated to Ethiopia, predicts that at given prices 62% of farmers would leave farming if tenure were secured, yet only 9% actually switch sectors after factoring in price adjustments.

Suggested Citation

  • Charles Gottlieb & Jan Grobovšek, 2015. "Communal Land and Agricultural Productivity," Discussion Papers 1513, Centre for Macroeconomics (CFM).
  • Handle: RePEc:cfm:wpaper:1513
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    Cited by:

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    2. Chen, Chaoran, 2020. "Technology adoption, capital deepening, and international productivity differences," Journal of Development Economics, Elsevier, vol. 143(C).
    3. Chaoran Chen & Diego Restuccia & Raul Santaeulalia-Llopis, 2017. "The Effects of Land Markets on Resource Allocation and Agricultural Productivity," Working Papers tecipa-592, University of Toronto, Department of Economics.
    4. Raul Santaeulalia-Llopis & Diego Restuccia, 2014. "Land Misallocation and Productivity," 2014 Meeting Papers 1314, Society for Economic Dynamics.
    5. Douglas Gollin & Christopher Udry, 2021. "Heterogeneity, Measurement Error, and Misallocation: Evidence from African Agriculture," Journal of Political Economy, University of Chicago Press, vol. 129(1), pages 1-80.
    6. Tasso Adamopoulos & Loren Brandt & Jessica Leight & Diego Restuccia, 2017. "Misallocation, Selection and Productivity: A Quantitative Analysis with Panel Data from China," Working Papers tecipa-593, University of Toronto, Department of Economics.
    7. Emran, M. Shahe & Shilpi, Forhad, 2015. "Do Land Market Restrictions Hinder Structural Change in a Rural Economy? Evidence from Sri Lanka," MPRA Paper 66017, University Library of Munich, Germany.
    8. Li, Xingguang & Liu, Jundi & Huo, Xuexi, 2021. "Impacts of tenure security and market-oriented allocation of farmland on agricultural productivity: Evidence from China’s apple growers," Land Use Policy, Elsevier, vol. 102(C).
    9. Jianxu Liu & Mengjiao Wang & Li Yang & Sanzidur Rahman & Songsak Sriboonchitta, 2020. "Agricultural Productivity Growth and Its Determinants in South and Southeast Asian Countries," Sustainability, MDPI, Open Access Journal, vol. 12(12), pages 1-21, June.
    10. Hossein Azadi & Eric Vanhaute, 2019. "Mutual Effects of Land Distribution and Economic Development: Evidence from Asia, Africa, and Latin America," Land, MDPI, Open Access Journal, vol. 8(6), pages 1-15, June.
    11. Cesar Blanco & Xavier Raurich, 2018. "Agricultural Composition, Structural Change and Labor Productivity," 2018 Meeting Papers 772, Society for Economic Dynamics.
    12. Rivera-Padilla, Alberto, 2020. "Crop choice, trade costs, and agricultural productivity," Journal of Development Economics, Elsevier, vol. 146(C).
    13. Zhao, Xiaoxue, 2020. "Land and labor allocation under communal tenure: Theory and evidence from China," Journal of Development Economics, Elsevier, vol. 147(C).

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    More about this item

    Keywords

    Agricultural Productivity; Growth and Development; Misallocation; Land;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • 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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