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Do the land-poor gain from agricultural investments? Empirical evidence from Zambia using panel data

Author

Listed:
  • Ahlerup, Pelle

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Tengstam, Sven

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

In the context of the global land rush, some portray large-scale land acquisitions as a potent threat to the livelihoods of already marginalized rural farming households in Africa. In order to avoid the potential pitfall of studying a particular project that may well have atypical effects, this paper systematically investigates the impact on commercial farm wage incomes for rural smallholder households of all pledged investments in the agricultural sector in Zambia between 1994 and 2007. The results suggest that agricultural investments are associated with a robust moderate positive effect, but only for households with a relative shortage of land.

Suggested Citation

  • Ahlerup, Pelle & Tengstam, Sven, 2015. "Do the land-poor gain from agricultural investments? Empirical evidence from Zambia using panel data," Working Papers in Economics 624, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0624
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    File URL: http://hdl.handle.net/2077/40183
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    References listed on IDEAS

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    1. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, January.
    2. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," World Bank Economic Review, World Bank Group, vol. 29(2), pages 207-233.
    3. Matthias Bujko & Christian Fischer & Tim Krieger & Daniel Meierrieks, 2016. "How Institutions Shape Land Deals: The Role of Corruption," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(3), pages 205-217, October.
    4. World Bank, 2009. "Awakening Africa's Sleeping Giant : Prospects for Commercial Agriculture in the Guinea Savannah Zone and Beyond [Le réveil du géant assoupi : Perspectives de l’agriculture commerciale dans les sava," World Bank Publications, The World Bank, number 2640.
    5. Lorenzo Cotula & Carlos Oya & Emmanuel A. Codjoe & Abdurehman Eid & Mark Kakraba-Ampeh & James Keeley & Admasu Lokaley Kidewa & Melissa Makwarimba & Wondwosen Michago Seide & William Ole Nasha & Richa, 2014. "Testing Claims about Large Land Deals in Africa: Findings from a Multi-Country Study," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 903-925, July.
    6. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," World Bank Economic Review, World Bank Group, vol. 29(2), pages 207-233.
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    Cited by:

    1. Deininger, Klaus & Xia, Fang, 2016. "Quantifying Spillover Effects from Large Land-based Investment: The Case of Mozambique," World Development, Elsevier, vol. 87(C), pages 227-241.
    2. Deininger, Klaus W. & Xia, Fang, 2017. "Assessing Impacts of Large Scale Land Transfers: Challenges and Opportunities in Malawi’s Estate Sector," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258112, Agricultural and Applied Economics Association.
    3. Lay, Jann & Nolte, Kerstin & Sipangule, Kacana, 2018. "Large-Scale Farms and Smallholders: Evidence from Zambia," GIGA Working Papers 310, GIGA German Institute of Global and Area Studies.
    4. Deininger, Klaus & Xia, Fang, 2018. "Assessing the long-term performance of large-scale land transfers: Challenges and opportunities in Malawi’s estate sector," World Development, Elsevier, vol. 104(C), pages 281-296.
    5. Makunike, Rudo E. & Kirsten, Johann F., 2018. "Engagement dynamics in large-scale investments in farmland and implications for smallholder farmers – evidence from Zambia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(2), June.

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    More about this item

    Keywords

    Agriculture; Investments; sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • N57 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Africa; Oceania
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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