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Communal Land and Agricultural Productivity

Listed author(s):
  • Charles Gottlieb

    ()

    (University of Cambridge
    Centre for Macroeconomics (CFM))

  • Jan Grobovšek

    ()

    (School of Economics University of Edinburgh)

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.

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File URL: http://www.centreformacroeconomics.ac.uk/Discussion-Papers/2015/CFMDP2015-13-Paper.pdf
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Paper provided by Centre for Macroeconomics (CFM) in its series Discussion Papers with number 1513.

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Length: 50 pages
Date of creation: Jun 2015
Handle: RePEc:cfm:wpaper:1513
Contact details of provider: Web page: http://www.centreformacroeconomics.ac.uk/

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  1. Douglas Gollin & Stephen L. Parente & Richard Rogerson, 2004. "Farm Work, Home Work, and International Productivity Differences," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(4), pages 827-850, October.
  2. Restuccia, Diego & Yang, Dennis Tao & Zhu, Xiaodong, 2008. "Agriculture and aggregate productivity: A quantitative cross-country analysis," Journal of Monetary Economics, Elsevier, vol. 55(2), pages 234-250, March.
  3. Diego Restuccia & Tasso Adamopoulos, 2012. "Land Reform and Productivity: A Quantitative Analysis with Micro Data," 2012 Meeting Papers 1083, Society for Economic Dynamics.
  4. Daniel Ayalew Ali & Stefan Dercon & Madhur Gautam, 2011. "Property rights in a very poor country: tenure insecurity and investment in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 42(1), pages 75-86, 01.
  5. Deininger, Klaus & Ali, Daniel Ayalew & Holden, Stein & Zevenbergen, Jaap, 2008. "Rural Land Certification in Ethiopia: Process, Initial Impact, and Implications for Other African Countries," World Development, Elsevier, vol. 36(10), pages 1786-1812, October.
  6. Deininger, Klaus & Jin, Songqing, 2006. "Tenure security and land-related investment: Evidence from Ethiopia," European Economic Review, Elsevier, vol. 50(5), pages 1245-1277, July.
  7. Sjaastad, Espen & Bromley, Daniel W., 1997. "Indigenous land rights in sub-Saharan Africa: Appropriation, security and investment demand," World Development, Elsevier, vol. 25(4), pages 549-562, January.
  8. Chaoran Chen, 2014. "Untitled Land, Occupational Choice, and Agricultural Productivity," Working Papers tecipa-513, University of Toronto, Department of Economics.
  9. Vollrath, Dietrich, 2009. "How important are dual economy effects for aggregate productivity?," Journal of Development Economics, Elsevier, vol. 88(2), pages 325-334, March.
  10. Gollin, Douglas & Rogerson, Richard, 2014. "Productivity, transport costs and subsistence agriculture," Journal of Development Economics, Elsevier, vol. 107(C), pages 38-48.
  11. Bomuhangi, Allan & Doss, Cheryl & Meinzen-Dick, Ruth, 2011. "Who owns the land?: Perspectives from rural Ugandans and implications for land acquisitions," IFPRI discussion papers 1136, International Food Policy Research Institute (IFPRI).
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