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Efficiency and Equity of Rural Land Markets and the Impact on Income: Evidence in Kenya and Uganda from 2003 to 2015

Author

Listed:
  • Rayner Tabetando

    (International Growth Centre, Tanzania)

  • Yoko Kijima

    (National Graduate Institute for Policy Studies, Tokyo, Japan)

Abstract

This study examines the evolution and impact of land sales and rental markets on agricultural efficiency in rural Kenya and Uganda using panel data spanning over 10 years. We first analyse the efficiency gains induced by land sales and rental markets by estimating the impact of participation in markets on unobserved farmer ability and land endowment. We do find evidence in both countries, that land markets induce efficiency by transferring land to households with higher farming ability. In both countries, the land market enhances equity by transferring land from land-abundant to land-constrained households. Although renting-in land increases crop income in Kenya, we find no evidence that renting in land enables households to escape from poverty. In contrast, increase in land owned helped decrease poverty incidence in Uganda. These findings points to potential weaknesses in the functioning of land markets in Kenya and Uganda which impedes their ability to contribute to poverty alleviation.

Suggested Citation

  • Rayner Tabetando & Yoko Kijima, 2019. "Efficiency and Equity of Rural Land Markets and the Impact on Income: Evidence in Kenya and Uganda from 2003 to 2015," GRIPS Discussion Papers 19-08, National Graduate Institute for Policy Studies.
    • Handle: RePEc:ngi:dpaper:19-08
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    Cited by:

    1. Lili Chen & Hongsheng Chen & Chaohui Zou & Ye Liu, 2021. "The Impact of Farmland Transfer on Rural Households’ Income Structure in the Context of Household Differentiation: A Case Study of Heilongjiang Province, China," Land, MDPI, vol. 10(4), pages 1-20, April.
    2. Chaozheng Zhang & Danling Chen, 2021. "Fragmentation Reduction through Farmer-Led Land Transfer and Consolidation? Experiences of Rice Farmers in Wuhan Metropolitan Area, China," Agriculture, MDPI, vol. 11(7), pages 1-14, July.
    3. Siyi Pei & Sudan Zhao & Xuan Li & Jiahui Li, 2024. "Impacts of Rural–Urban Labour Transfer and Land Transfer on Land Efficiency in China: A Analysis of Mediating Effects," Land, MDPI, vol. 13(5), pages 1-22, May.
    4. CAO, Yu & Zou, Jie & Fang, Xiaoqian & Wang, Jiayi & Cao, Yu & Li, Guoyu, 2020. "Effect of land tenure fragmentation on the decision-making and scale of agricultural land transfer in China," Land Use Policy, Elsevier, vol. 99(C).
    5. Xia, Fangzhou & Huang, Jing & Zhang, Zhengfeng, 2024. "Government concerns, the benefit cliff, and land use: A comparative study of rural impoverished and marginalised impoverished groups," Land Use Policy, Elsevier, vol. 140(C).
    6. Wenjing Han & Yang Fu & Wen Sun, 2023. "Farmland Transfer Participation and Rural Well-Being Inequality: Evidence from Rural China with the Capability Approach," Land, MDPI, vol. 12(7), pages 1-21, June.
    7. Wenjing Han & Zhengfeng Zhang & Xiaoling Zhang & Li He, 2021. "Farmland Rental Participation, Agricultural Productivity, and Household Income: Evidence from Rural China," Land, MDPI, vol. 10(9), pages 1-22, August.
    8. Lucie Severová & Karel Šrédl & Marie Prášilová & Michal Štěbeták & Roman Svoboda & Dita Hommerová & Lenka Kopecká, 2021. "The Influence of the Growth of the Number of Microbreweries on the Use of Farmland and on the Cultivation of Hops in the Czech Republic: A Case Study," Land, MDPI, vol. 10(8), pages 1-17, July.
    9. Shichao Yuan & Jian Wang, 2022. "Involution Effect: Does China’s Rural Land Transfer Market Still Have Efficiency?," Land, MDPI, vol. 11(5), pages 1-18, May.
    10. K. Kareemulla & Pandian Krishnan & S. Ravichandran & B. Ganesh Kumar & Sweety Sharma & Ramachandra Bhatta, 2021. "Spatiotemporal Analysis of Size and Equity in Ownership Dynamics of Agricultural Landholdings in India Vis-à-Vis the World," Sustainability, MDPI, vol. 13(18), pages 1-25, September.
    11. Zhang, Jian & Li, Ting & He, Yuhui & Li, Zhaohui, 2025. "Does land transfer-out facilitate an upgrade in farmers’ consumption," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 2219-2233.
    12. Lulin Shen & Fang Wang, 2024. "Can Market-Oriented Allocation of Land Factors Promote the Adoption of Cropland Quality Protection Behaviors by Farmers: Evidence from Rural China," Land, MDPI, vol. 13(5), pages 1-19, May.
    13. Lian Ke & Shan Cheng & Diqiang Chen & Ying Li, 2023. "Why Is the Income Effect of Farmland Transfer Inconsistent between Transferred-Out and Transferred-In Households?," Sustainability, MDPI, vol. 15(9), pages 1-19, April.

    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • 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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