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Testing for Market Power in Agricultural Land Markets : Evidence from Ukraine

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  • Deininger, Klaus W.
  • Ali, Daniel Ayalew

Abstract

Agricultural land markets are critical for structural transformation but may, as farm sizes increase, also be affected by operators exercising market power. To explore this little-studied issue, this paper uses administrative data for agricultural land lease transactions from 2021 to 2024 in Ukraine. Tenant fixed effect regressions indicate that, compared to village councils where it controlled less than 10 percent of the land before a transaction, the same tenant paid 4 or 7.5 percent ($3.66 or $6.86 per ha and year) less rent. Robustness checks using land sales prices or the length of lease terms yield similar results. Policy implications for Ukraine and beyond are discussed.

Suggested Citation

  • Deininger, Klaus W. & Ali, Daniel Ayalew, 2026. "Testing for Market Power in Agricultural Land Markets : Evidence from Ukraine," Policy Research Working Paper Series 11355, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11355
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    File URL: https://documents.worldbank.org/curated/en/099158404162687794/pdf/IDU-d3492350-6b2c-4992-bc5d-78da0f5928c0.pdf
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