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Can Land Fragmentation Reduce the Exposure of Rural Households to Weather Variability?

Author

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  • Stefanija Veljanoska

    () (Paris School of Economics, UniversitŽ de Paris 1 PanthŽon-Sorbonne, UniversitŽ Paris-Sud)

Abstract

Climate change continuously affects African farmers that operate in rain-fed environments. Coping with weather risk through credit and insurance markets is almost inexistent as these markets are imperfect in the African economies. Even though land fragmentation is often considered as a barrier to agricultural productivity, this article aims at analyzing whether land fragmentation, as an insurance alternative, is able to reduce farmers' exposure to weather variability. In order to address this research question, I use the Living Standards Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) data on Uganda. After dealing with the endogeneity of land fragmentation, I find that higher land fragmentation decreases the loss of crop yield when households experience rain deviations. Therefore, policy makers should be cautious with land consolidation programs.

Suggested Citation

  • Stefanija Veljanoska, 2017. "Can Land Fragmentation Reduce the Exposure of Rural Households to Weather Variability?," Policy Papers 2017.02, FAERE - French Association of Environmental and Resource Economists.
  • Handle: RePEc:fae:ppaper:2017.02
    as

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    File URL: http://faere.fr/pub/PolicyPapers/Veljanoska_FAERE_PP2017.02.pdf
    File Function: First version, 2017
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    References listed on IDEAS

    as
    1. Tan, Shuhao & Heerink, Nico & Kruseman, Gideon & Qu, Futian, 2008. "Do fragmented landholdings have higher production costs? Evidence from rice farmers in Northeastern Jiangxi province, P.R. China," China Economic Review, Elsevier, vol. 19(3), pages 347-358, September.
    2. Blarel, Benoit, et al, 1992. "The Economics of Farm Fragmentation: Evidence from Ghana and Rwanda," World Bank Economic Review, World Bank Group, vol. 6(2), pages 233-254, May.
    3. Van Hung, Pham & MacAulay, T. Gordon & Marsh, Sally P., 2007. "The economics of land fragmentation in the north of Vietnam," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-17.
    4. Kahsay, Goytom Abraha & Hansen, Lars Gårn, 2016. "The effect of climate change and adaptation policy on agricultural production in Eastern Africa," Ecological Economics, Elsevier, vol. 121(C), pages 54-64.
    5. Fenoaltea, Stefano, 1976. "Risk, transaction costs, and the organization of medieval agriculture," Explorations in Economic History, Elsevier, vol. 13(2), pages 129-151, April.
    6. Nkonya, Ephraim M. & Pender, John L. & Jagger, Pamela & Sserunkuuma, Dick & Kaizzi, Crammer & Ssali, Henry, 2004. "Strategies for sustainable land management and poverty reduction in Uganda:," Research reports 133, International Food Policy Research Institute (IFPRI).
    7. Carletto, Calogero & Savastano, Sara & Zezza, Alberto, 2013. "Fact or artifact: The impact of measurement errors on the farm size–productivity relationship," Journal of Development Economics, Elsevier, vol. 103(C), pages 254-261.
    8. Paul Collier & Gordon Conway & Tony Venables, 2008. "Climate change and Africa," Oxford Review of Economic Policy, Oxford University Press, vol. 24(2), pages 337-353, Summer.
    9. Pham Van Hung & T. Gordon MacAulay & Sally P. Marsh, 2007. "The economics of land fragmentation in the north of Vietnam ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 195-211, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    climate change; land fragmentation; rainfall; yield; insurance;

    JEL classification:

    • 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
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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