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Land Valuation and Perceptions of Land Sales Prohibition in Ethiopia

Listed author(s):
  • Holden , Stein

    ()

    (Centre for Land Tenure Studies, Norwegian University of Life Sciences)

  • Bezu, Sosina

    (Centre for Land Tenure Studies, Norwegian University of Life Sciences)

This study investigates attitudes towards legalizing land sales and Willingness to Accept (WTA) sales prices and compensation prices for land among smallholder households in four different areas in the Oromia and SNNP Regions in the southern highlands of Ethiopia. Household panel data from 2007 and 2012 are used. The large majority of the sample prefers land sales to remain illegal, and the resistance to legalizing land sales increased from 2007 to 2012. In the same period, perceived median real land values increased sharply but also exhibit substantial local variation. Land loss aversion is associated with higher land values and less willingness to sell land if land sales were to become legal. The substantial increase in perceived land values, high economic growth and outmigration of youth have yet to persuade the rural population in southern Ethiopia to open the land sales market.

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Paper provided by Centre for Land Tenure Studies, Norwegian University of Life Sciences in its series CLTS Working Papers with number 12/14.

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Length: 25 pages
Date of creation: 18 Nov 2014
Handle: RePEc:hhs:nlsclt:2014_012
Contact details of provider: Postal:
Centre for Land Tenure Studies, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 Aas, Norway

Phone: (+47) 6496 5700
Fax: (+47) 6494 3012
Web page: http://www.umb.no/clts

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  1. Hans P. Binswanger & Klaus Deininger, 1997. "Explaining Agricultural and Agrarian Policies in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 35(4), pages 1958-2005, December.
  2. Deininger, Klaus & Jin, Songqing, 2006. "Tenure security and land-related investment: Evidence from Ethiopia," European Economic Review, Elsevier, vol. 50(5), pages 1245-1277, July.
  3. Deininger, Klaus & Byerlee, Derek, 2012. "The Rise of Large Farms in Land Abundant Countries: Do They Have a Future?," World Development, Elsevier, vol. 40(4), pages 701-714.
  4. Klaus Deininger & Songqing Jin, 2008. "Land Sales and Rental Markets in Transition: Evidence from Rural Vietnam," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(1), pages 67-101, February.
  5. 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.
  6. Charles R. Plott & Kathryn Zeiler, 2007. "Exchange Asymmetries Incorrectly Interpreted as Evidence of Endowment Effect Theory and Prospect Theory?," American Economic Review, American Economic Association, vol. 97(4), pages 1449-1466, September.
  7. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
  8. Knetsch, Jack L, 1989. "The Endowment Effect and Evidence of Nonreversible Indifference Curves," American Economic Review, American Economic Association, vol. 79(5), pages 1277-1284, December.
  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. Stein Holden & Hailu Yohannes, 2002. "Land Redistribution, Tenure Insecurity, and Intensity of Production: A Study of Farm Households in Southern Ethiopia," Land Economics, University of Wisconsin Press, vol. 78(4), pages 573-590.
  11. Klaus Deininger, 2008. "Implementing Low-Cost Rural Land Certification : The Case of Ethiopia," World Bank Other Operational Studies 9528, The World Bank.
  12. 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.
  13. Bezu, Sosina & Holden, Stein, 2014. "Are Rural Youth in Ethiopia Abandoning Agriculture?," World Development, Elsevier, vol. 64(C), pages 259-272.
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