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Reverse-share-tenancy and Marshallian Inefficiency: Landowners’ bargaining power and sharecroppers’ productivity

  • Hagos, Hosaena Gebru
  • Holden, Stein T.

While there are ample empirical studies that claim the potential disincentive effects of sharecropping arrangements, the existing literature is shallow in explaining why share tenancy contracts are prevalent and diffusing in many developing countries. Using a unique tenant-landlord matched dataset from the Tigray region of Ethiopia, we are able to show how the tenants’ strategic response to the varying economic and tenure-security status of the landlords can explain sharecroppers’ productivity differentials.

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Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 1270.

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Date of creation: 2013
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Handle: RePEc:fpr:ifprid:1270
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  1. Bezabih, Mintewab & Holden, Stein, 2010. "The Role of Land Certification in Reducing Gender Gaps in Productivity in Rural Ethiopia," Discussion Papers dp-10-23-efd, Resources For the Future.
  2. Jean-Louis ARCAND & AI & ETHIER, 2005. "Moral Hazard and Marshallian Inefficiency:Evidence from Tunisia," Working Papers 200534, CERDI.
  3. Li, Guo & Rozelle, Scott & Brandt, Loren, 1998. "Tenure, land rights, and farmer investment incentives in China," Agricultural Economics, Blackwell, vol. 19(1-2), pages 63-71, September.
  4. Karen Macours, 2014. "Ethnic divisions, contract choice, and search costs in the Guatemalan land rental market," PSE - Labex "OSE-Ouvrir la Science Economique" halshs-00978710, HAL.
  5. Aryal, Jeetendra P. & Holden, Stein T., 2011. "Livestock and Land Share Contracts in a Hindu Society," CLTS Working Papers 7/11, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  6. Sadoulet, Elisabeth & Fukui, Seiichi & Janvry, Alan de, 1994. "Efficient share tenancy contracts under risk: The case of two rice-growing villages in Thailand," Journal of Development Economics, Elsevier, vol. 45(2), pages 225-243, December.
  7. Bellemare, Marc F., 2010. "Insecure Land Rights and Share Tenancy in Madagascar," MPRA Paper 23640, University Library of Munich, Germany.
  8. Jeffrey M. Wooldridge, 2004. "Inverse probability weighted estimation for general missing data problems," CeMMAP working papers CWP05/04, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  9. 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.
  10. Holden, Stein & Shiferaw, Bekele & Pender, John L., 2001. "Market imperfections and land productivity in the Ethiopian Highlands:," EPTD discussion papers 76, International Food Policy Research Institute (IFPRI).
  11. Joseph E. Stiglitz, 1973. "Incentives and Risk-Sharing in Sharecropping," Cowles Foundation Discussion Papers 353, Cowles Foundation for Research in Economics, Yale University.
  12. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, June.
  13. Stein Holden & Klaus Deininger & Hosaena Ghebru, 2011. "Tenure Insecurity, Gender, Low-cost Land Certification and Land Rental Market Participation in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 31-47.
  14. Stein T. Holden & Klaus Deininger & Hosaena Ghebru, 2007. "Impacts of Low-Cost Land Certification on Investment and Productivity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 359-373.
  15. Holden, Stein T. & Ghebru, Hosaena, 2011. "Household Welfare Effects of Low-cost Land Certification in Ethiopia," CLTS Working Papers 3/11, Centre for Land Tenure Studies, Norwegian University of Life Sciences.
  16. John Pender & Marcel Fafchamps, 2006. "Land Lease Markets and Agricultural Efficiency in Ethiopia," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(2), pages 251-284, June.
  17. Menale Kassie & Stein Holden, 2007. "Sharecropping efficiency in Ethiopia: threats of eviction and kinship," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 179-188, 09.
  18. Naresh Sharma & Jean Dreze, 1996. "Sharecropping in a North Indian Village," Journal of Development Studies, Taylor & Francis Journals, vol. 33(1), pages 1-39.
  19. Shaban, Radwan Ali, 1987. "Testing between Competing Models of Sharecropping," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 893-920, October.
  20. Gavian, Sarah & Ehui, Simeon, 1999. "Measuring the production efficiency of alternative land tenure contracts in a mixed crop-livestock system in Ethiopia," Agricultural Economics, Blackwell, vol. 20(1), pages 37-49, January.
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