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Analyzing the welfare-improving potential of land in the former homelands of South Africa

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  • Lovo, Stefania

Abstract

This article contributes to the debate on the role of land in reducing poverty in rural South Africa. It uses the year of arrival in the former homelands as an instrument for land access and size. This identification strategy is based on the fact that African households were forcibly relocated to the homelands during the apartheid. Due to increasing population pressure, later arrivals were less likely to be assigned land. The results show that land has a large positive effect on household welfare. Because the homelands are relatively disadvantaged areas, these results provide a lower bound for the positive effects of land on household welfare.

Suggested Citation

  • Lovo, Stefania, 2014. "Analyzing the welfare-improving potential of land in the former homelands of South Africa," LSE Research Online Documents on Economics 63355, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:63355
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    File URL: http://eprints.lse.ac.uk/63355/
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    References listed on IDEAS

    as
    1. Finan, Frederico & Sadoulet, Elisabeth & de Janvry, Alain, 2005. "Measuring the poverty reduction potential of land in rural Mexico," Journal of Development Economics, Elsevier, vol. 77(1), pages 27-51, June.
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    3. Carter, Michael R. & May, Julian, 1999. "Poverty, livelihood and class in rural South Africa," World Development, Elsevier, vol. 27(1), pages 1-20, January.
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    5. Eswaran, Mukesh & Kotwal, Ashok, 1986. "Access to Capital and Agrarian Production Organisation," Economic Journal, Royal Economic Society, vol. 96(382), pages 482-498, June.
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    8. Timothy Besley & Robin Burgess, 2000. "Land Reform, Poverty Reduction, and Growth: Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 389-430.
    9. Stefania Lovo, 2011. "Pension Transfers and farm household technical efficiency: Evidence from South Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(5), pages 1391-1405.
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    15. Stefania Lovo, 2012. "Market imperfections, liquidity, and farm household labor allocation: the case of rural South Africa," Agricultural Economics, International Association of Agricultural Economists, vol. 43(4), pages 417-428, July.
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    More about this item

    Keywords

    land; household welfare; asset index forced removals; homelands; South Africa;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • 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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