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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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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Chaoran Chen, 2017. "Technology Adoption, Capital Deepening, and International Productivity Differences," Working Papers tecipa-584, University of Toronto, Department of Economics.
    2. 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.
    3. Raul Santaeulalia-Llopis & Diego Restuccia, 2014. "Land Misallocation and Productivity," 2014 Meeting Papers 1314, Society for Economic Dynamics.
    4. Gollin, D. & Udry, C., 2018. "Heterogeneity, Measurement Error, and Misallocation: Evidence from African Agriculture," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277279, International Association of Agricultural Economists.
    5. Le, Kien, 2018. "Land Use Restrictions, Misallocation in Agriculture, and Aggregate Productivity in Vietnam," MPRA Paper 90797, University Library of Munich, Germany.
    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. repec:gam:jlands:v:8:y:2019:i:6:p:96-:d:240243 is not listed on IDEAS
    9. Cesar Blanco & Xavier Raurich, 2018. "Agricultural Composition, Structural Change and Labor Productivity," 2018 Meeting Papers 772, Society for Economic Dynamics.

    More about this item

    Keywords

    Agricultural Productivity; Growth and Development; Misallocation; Land;

    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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