Productivity effects of land rental markets in Ethiopia : Evidence from a matched tenant-landlord sample
As countries increasingly strive to transform their economies from agriculture-based into a diversified one, land rental will become of greater importance. It will thus be critical to complement research on the efficiency of specific land rental arrangements -- such as sharecropping -- with an inquiry into the broader productivity impacts of the land rental market. Plot-level data for a matched landlord-tenant sample in an environment where sharecropping dominates allows this paper to explore both issues. The authors find that pure output sharing leads to significantly lower levels of efficiency that can be attenuated by monitoring while the inefficiency disappears if inputs are shared as well. Rentals transfer land to more productive producers but realization of this productivity advantage is prevented by the inefficiency of contractual arrangements, suggesting changes that would prompt adoption of different contractual arrangements could have significant benefits.
|Date of creation:||01 Jul 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Deininger, Klaus & Jin, Songqing, 2005. "The potential of land rental markets in the process of economic development: Evidence from China," Journal of Development Economics, Elsevier, vol. 78(1), pages 241-270, October.
- Jin, Songqing & Deininger, Klaus W., 2007.
"Land Rental Markets in the Process of Rural Structural Transformation: Productivity and Equity Impacts from China,"
2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN
9932, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
- Seiichi Fukui, 1997. "The Meaning of Kinship in Sharecropping Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 394-406.
- Arcand, Jean-Louis & Ai, Chunrong & Ethier, Francois, 2007.
"Moral hazard and Marshallian inefficiency: Evidence from Tunisia,"
Journal of Development Economics,
Elsevier, vol. 83(2), pages 411-445, July.
- Jean-Louis ARCAND & AI & ETHIER, 2005. "Moral Hazard and Marshallian Inefficiency:Evidence from Tunisia," Working Papers 200534, CERDI.
- Al, C. & Arcand, J.L. & Ethier, F., 1996. "Moral Hazard and Marshallian Inefficiency: Evidence from Tunisia," Cahiers de recherche 9605, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Al, C. & Arcand, J.L. & Ethier, F., 1996. "Moral Hazard and Marshallian Inefficiency: Evidence from Tunisia," Cahiers de recherche 9605, Universite de Montreal, Departement de sciences economiques.
- Deininger, Klaus & Jin, Songqing, 2007. "Land rental markets in the process of rural structural transformation : productivity and equity impacts in China," Policy Research Working Paper Series 4454, The World Bank.
- Deininger, Klaus & Ali, Daniel Ayalew & Alemu, Tekie, 2007.
"Assessing the functioning of land rental markets in Ethiopia,"
Policy Research Working Paper Series
4442, The World Bank.
- Klaus Deininger & Daniel Ayalew Ali & Tekie Alemu, 2008. "Assessing the Functioning of Land Rental Markets in Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 67-100, October.
- Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
- Sanjaya DeSilva, 2000. "Skills, Partnerships and Tenancy in Sri Lankan Rice Farms," Working Papers 819, Economic Growth Center, Yale University.
- 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.
- Otsuka, Keijiro & Hayami, Yujiro, 1988. "Theories of Share Tenancy: A Critical Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 37(1), pages 31-68, October.
- repec:cor:louvrp:-12 is not listed on IDEAS
- 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.
- 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.
- Feder, Gershon, 1985. "The relation between farm size and farm productivity : The role of family labor, supervision and credit constraints," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 297-313, August.
- Lanjouw, Jean Olson, 1999. "Information and the operation of markets: tests based on a general equilibrium model of land leasing in India," Journal of Development Economics, Elsevier, vol. 60(2), pages 497-527, December.
- Marc F. Bellemare, 2009. "Sharecropping, Insecure Land Rights and Land Titling Policies: A Case Study of Lac Alaotra, Madagascar," Development Policy Review, Overseas Development Institute, vol. 27(1), pages 87-106, 01.
- George E. Battese, 1997. "A Note On The Estimation Of Cobb-Douglas Production Functions When Some Explanatory Variables Have Zero Values," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1-3), pages 250-252.
- Fuller, Wayne A, 1977. "Some Properties of a Modification of the Limited Information Estimator," Econometrica, Econometric Society, vol. 45(4), pages 939-53, May.
- Jacoby, Hanan G. & Mansuri, Ghazala, 2009.
"Incentives, supervision, and sharecropper productivity,"
Journal of Development Economics,
Elsevier, vol. 88(2), pages 232-241, March.
- Jacoby, Hanan G. & Mansuri, Ghazala, 2007. "Incentives, supervision, and sharecropper productivity," Policy Research Working Paper Series 4125, The World Bank.
- François Bourguignon & Martin Fournier & Marc Gurgand, 2004.
"Selection Bias Corrections Based on the Multinomial Logit Model: Monte-Carlo Comparisons,"
DELTA Working Papers
2004-20, DELTA (Ecole normale supérieure).
- François Bourguignon & Martin Fournier & Marc Gurgand, 2007. "Selection Bias Corrections Based On The Multinomial Logit Model: Monte Carlo Comparisons," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 174-205, 02.
- 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.
- Hanan G. Jacoby & Ghazala Mansuri, 2008. "Land Tenancy and Non-Contractible Investment in Rural Pakistan," Review of Economic Studies, Oxford University Press, vol. 75(3), pages 763-788.
- Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Testing for selectivity in panel data models," Other publications TiSEM 7ec34a6c-1d84-4052-971c-d, Tilburg University, School of Economics and Management.
- Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
- Verbeek, M.J.C.M. & Nijman, T.E., 1990.
"Testing for selectivity bias in panel data models,"
1990-18, Tilburg University, Center for Economic Research.
- Cheung, Steven N S, 1969. "Transaction Costs, Risk Aversion, and the Choice of Contractual Arrangements," Journal of Law and Economics, University of Chicago Press, vol. 12(1), pages 23-42, April.
- DeSilva, S., 2000. "Skills, Partnerships and Tenancy in Sri Lankan Rice Farms," Papers 819, Yale - Economic Growth Center.
- Shetty, Sudhir, 1988. "Limited liability, wealth differences and tenancy contracts in agrarian economies," Journal of Development Economics, Elsevier, vol. 29(1), pages 1-22, July.
- Tridip Ray, 2005. "Sharecropping, Land Exploitation And Land-Improving Investments," The Japanese Economic Review, Japanese Economic Association, vol. 56(2), pages 127-143.
- 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.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:5727. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.