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What Drives Land Sales and Rentals in Rural Africa: Evidence from Western Burkina Faso

Listed author(s):
  • Estelle Koussoubé

    ()

    (PSL, Université Paris Dauphine, LEDa, IRD, UMR DIAL)

(english) This paper examines the conditions of emergence of agricultural land markets in the cotton zone of Burkina Faso. I use census data obtained from 454 villages in the Hauts-Bassins region, to estimate the determinants of activity in land sales and rental markets, focusing on the effect of internal in-migration. After controlling for the endogeneity of in-migration using instrumental variables, the results show a significant and positive impact of in-migration on the probability of rentals of agricultural land at the village level. The results also show that the eradication of river blindness in the study area, and rainfall shocks in migrant origin provinces are important determinants of in-migration in this part of Burkina Faso. Furthermore, I find a positive impact of urban proximity on both land sales and rental market activity. These findings suggest that heterogeneity in land endowment and access to (input and output) markets play a crucial role in the emergence of land markets in Western Burkina Faso. _________________________________ (français) Cet article examine les conditions d’émergence des marchés fonciers ruraux dans la région des Hauts-Bassins dans la zone cotonnière du Burkina Faso. J’utilise des données de recensement sur 454 villages de la région combinées avec des données géo-référencées pour estimer l’impact de la migration sur les ventes et locations de terres agricoles. La première contribution de ce papier est de corriger du biais d’endogénéité de la migration en utilisant des variables instrumentales, à savoir les chocs de précipitations dans les régions d’origine des migrants, et la participation au programme de lutte contre l’onchocercose (PLO) lancé en 1974 par l’Organisation mondiale de la Santé. En recourant à cette approche par variables instrumentales, je trouve que l’augmentation de la part des migrants dans les villages a un impact positif sur la probabilité d’avoir un marché foncier actif à la location et à la vente. Ces résultats suggèrent que la rareté de la terre n’est pas le principal déterminant des ventes et locations de terres agricoles; les différences de dotations en terres jouent un rôle important dans l’émergence et le développement des marchés fonciers.

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Paper provided by DIAL (Développement, Institutions et Mondialisation) in its series Working Papers with number DT/2014/10.

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Length: 46 pages
Date of creation: Dec 2014
Handle: RePEc:dia:wpaper:dt201410
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  1. Frederic Zimmerman & MICHAEL R. CARTER, 1996. "Rethinking the Demand for Institutional Innovation Land Rights and Land Markets in the West African Sahel," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 400, Wisconsin-Madison Agricultural and Applied Economics Department.
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  7. McMillan, Margaret & Masters, William A. & Kazianga, Harounan, 2012. "Rural demography, public services, and land rights in Africa: A village-level analysis in Burkina Faso," IFPRI discussion papers 1164, International Food Policy Research Institute (IFPRI).
  8. 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.
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  10. Jean-Philippe Colin & Mourad Ayouz, 2006. "The Development of a Land Market? Insights from Côte d’Ivoire," Land Economics, University of Wisconsin Press, vol. 82(3), pages 404-423.
  11. McKenzie, David & Gibson, John & Stillman, Steven, 2006. "How Important Is Selection? Experimental vs. Non-Experimental Measures of the Income Gains from Migration," IZA Discussion Papers 2087, Institute for the Study of Labor (IZA).
  12. Elaina Rose, 1999. "Consumption Smoothing and Excess Female Mortality in Rural India," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 41-49, February.
  13. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
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  15. Migot-Adholla, Shem, et al, 1991. "Indigenous Land Rights Systems in Sub-Saharan Africa: A Constraint on Productivity?," World Bank Economic Review, World Bank Group, vol. 5(1), pages 155-175, January.
  16. Harounan Kazianga & Christopher Udry, 2004. "Consumption Smoothing? Livestock, Insurance and Drought in Rural Burkina Faso," Working Papers 898, Economic Growth Center, Yale University.
  17. Feder, Gershon & Noronha, Raymond, 1987. "Land Rights Systems and Agricultural Development in Sub-Saharan Afric a," World Bank Research Observer, World Bank Group, vol. 2(2), pages 143-169, July.
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  19. Alchian, Armen A. & Demsetz, Harold, 1973. "The Property Right Paradigm," The Journal of Economic History, Cambridge University Press, vol. 33(01), pages 16-27, March.
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