IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/7466.html
   My bibliography  Save this paper

Quantifying spillover effects from large farm establishments : the case of Mozambique

Author

Listed:
  • Deininger,Klaus W.
  • Xia,Fang
  • Mate,Aurelio
  • Payongayong,Ellen
  • Deininger,Klaus W.
  • Xia,Fang
  • Mate,Aurelio
  • Payongayong,Ellen

Abstract

Almost a decade after large land-based investment for agriculture increased sharply, opinions on its impact continue to diverge, partly because (positive or negative) spillovers on neighboring smallholders have never been rigorously assessed. Applying methods from the urban literature on Mozambican data suggests that changes in the number and area of large farms within 25 or 50 kilometers of these investments raised use of improved practices, animal traction, and inputs by small farmers without increasing cultivated area or participation in output, credit, and nonfarm labor markets; or, once these factors are controlled for, yields. The limited scope and modest size of the estimated benefits point toward considerable unrealized potential. The paper discusses ways to systematically explore the size of such potential and the extent to which it is realized.

Suggested Citation

  • Deininger,Klaus W. & Xia,Fang & Mate,Aurelio & Payongayong,Ellen & Deininger,Klaus W. & Xia,Fang & Mate,Aurelio & Payongayong,Ellen, 2015. "Quantifying spillover effects from large farm establishments : the case of Mozambique," Policy Research Working Paper Series 7466, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7466
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/158661467991020728/pdf/WPS7466.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hueth, Brent & Ligon, Ethan & Dimitri, Carolyn, 2007. "AJAE Appendix: Agricultural Contracts: Data and Research Needs," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 89(5), pages 1-7, December.
    2. Michael R. Carter & Rachid Laajaj & Dean Yang, 2014. "Subsidies and the Persistence of Technology Adoption: Field Experimental Evidence from Mozambique," NBER Working Papers 20465, National Bureau of Economic Research, Inc.
    3. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
    4. Nolte, Kerstin & Voget-Kleschin, Lieske, 2014. "Consultation in Large-Scale Land Acquisitions: An Evaluation of Three Cases in Mali," World Development, Elsevier, vol. 64(C), pages 654-668.
    5. 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.
    6. 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.
    7. Kajisa, Kei & Payongayong, Ellen, 2011. "Potential of and constraints to the rice Green Revolution in Mozambique: A case study of the Chokwe irrigation scheme," Food Policy, Elsevier, vol. 36(5), pages 614-625, October.
    8. 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.
    9. Vang Rasmussen, Laura & Rasmussen, Kjeld & Bech Bruun, Thilde, 2012. "Impacts of Jatropha-based biodiesel production on above and below-ground carbon stocks: A case study from Mozambique," Energy Policy, Elsevier, vol. 51(C), pages 728-736.
    10. Channing Arndt & M. Azhar Hussain & E. Samuel Jones & Virgulino Nhate & Finn Tarp & James Thurlow, 2013. "Explaining the Evolution of Poverty: The Case of Mozambique," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 206-206.
    11. Collier Paul & Venables Anthony J., 2012. "Land Deals in Africa: Pioneers and Speculators," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-22, June.
    12. Miet Maertens & Liesbeth Colen & Johan F. M. Swinnen, 2011. "Globalisation and poverty in Senegal: a worst case scenario?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 38(1), pages 31-54, March.
    13. Arndt, Channing & Benfica, Rui & Tarp, Finn & Thurlow, James & Uaiene, Rafael, 2010. "Biofuels, poverty, and growth: a computable general equilibrium analysis of Mozambique," Environment and Development Economics, Cambridge University Press, vol. 15(1), pages 81-105, February.
    14. Christoph Saenger & Matin Qaim & Maximo Torero & Angelino Viceisza, 2013. "Contract farming and smallholder incentives to produce high quality: experimental evidence from the Vietnamese dairy sector," Agricultural Economics, International Association of Agricultural Economists, vol. 44(3), pages 297-308, May.
    15. Benedito Cunguara, 2012. "An exposition of development failures in Mozambique," Review of African Political Economy, Taylor & Francis Journals, vol. 39(131), pages 161-170, March.
    16. World Bank, 2011. "Mozambique - Analysis of Public Expenditure in Agriculture : Core Analysis," World Bank Other Operational Studies 2750, The World Bank.
    17. Henderson, J. Vernon, 2003. "Marshall's scale economies," Journal of Urban Economics, Elsevier, vol. 53(1), pages 1-28, January.
    18. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June.
    19. Janet Currie & Lucas Davis & Michael Greenstone & Reed Walker, 2015. "Environmental Health Risks and Housing Values: Evidence from 1,600 Toxic Plant Openings and Closings," American Economic Review, American Economic Association, vol. 105(2), pages 678-709, February.
    20. Schoneveld, George Christoffel, 2014. "The geographic and sectoral patterns of large-scale farmland investments in sub-Saharan Africa," Food Policy, Elsevier, vol. 48(C), pages 34-50.
    21. Ruth Hall, 2011. "Land grabbing in Southern Africa: the many faces of the investor rush," Review of African Political Economy, Taylor & Francis Journals, vol. 38(128), pages 193-214, June.
    22. Sitko, Nicholas J. & Jayne, T.S., 2014. "Structural transformation or elite land capture? The growth of “emergent” farmers in Zambia," Food Policy, Elsevier, vol. 48(C), pages 194-202.
    23. Arndt, Channing & Benfica, Rui & Thurlow, James, 2011. "Gender Implications of Biofuels Expansion in Africa: The Case of Mozambique," World Development, Elsevier, vol. 39(9), pages 1649-1662, September.
    24. Negash, Martha & Swinnen, Johan F.M., 2013. "Biofuels and food security: Micro-evidence from Ethiopia," Energy Policy, Elsevier, vol. 61(C), pages 963-976.
    25. Kotsadam, Andreas & Tolonen, Anja, 2016. "African Mining, Gender, and Local Employment," World Development, Elsevier, vol. 83(C), pages 325-339.
    26. Lars Buur & Carlota Mondlane Tembe & Obede Baloi, 2012. "The White Gold: The Role of Government and State in Rehabilitating the Sugar Industry in Mozambique," Journal of Development Studies, Taylor & Francis Journals, vol. 48(3), pages 349-362, March.
    27. Klaus Deininger & Derek Byerlee & Jonathan Lindsay & Andrew Norton & Harris Selod & Mercedes Stickler, 2011. "Rising Global Interest in Farmland : Can it Yield Sustainable and Equitable Benefits?," World Bank Publications, The World Bank, number 2263, June.
    28. Saturnino M. Borras & David Fig & Sofía Monsalve Suárez, 2011. "The politics of agrofuels and mega-land and water deals: insights from the ProCana case, Mozambique," Review of African Political Economy, Taylor & Francis Journals, vol. 38(128), pages 215-234, June.
    29. Brent Hueth & Ethan Ligon & Carolyn Dimitri, 2007. "Agricultural Contracts: Data and Research Needs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1276-1281.
    30. Benedito Cunguara & Joseph Hanlon, 2012. "Whose Wealth Is It Anyway? Mozambique's Outstanding Economic Growth with Worsening Rural Poverty," Development and Change, International Institute of Social Studies, vol. 43(3), pages 623-647, May.
    31. German, Laura & Schoneveld, George & Mwangi, Esther, 2013. "Contemporary Processes of Large-Scale Land Acquisition in Sub-Saharan Africa: Legal Deficiency or Elite Capture of the Rule of Law?," World Development, Elsevier, vol. 48(C), pages 1-18.
    32. Benedito Cunguara & Karl Moder, 2011. "Is Agricultural Extension Helping the Poor? Evidence from Rural Mozambique," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 20(4), pages 562-595, August.
    33. Collier, Paul & Dercon, Stefan, 2014. "African Agriculture in 50Years: Smallholders in a Rapidly Changing World?," World Development, Elsevier, vol. 63(C), pages 92-101.
    34. M.O. Adewumi & Ayodele Jimoh & O.A. Omotesho, 2013. "Implications of the Presence of Large Scale Commercial Farmers on Small Scale Farming in Nigeria. The Case of Zimbabwean Farmers in Kwara State," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(4), pages 67-73, December.
    35. Bart Minten & Lalaina Randrianarison & Johan Swinnen, 2007. "Spillovers from high‐value agriculture for exports on land use in developing countries: evidence from Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 265-275, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Independent Evaluation Group, 2016. "Growing the Rural Nonfarm Economy to Alleviate Poverty," World Bank Publications, The World Bank, number 28971, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    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. Ali,Daniel Ayalew & Deininger,Klaus W. & Harris,Charles Anthony Philip & Ali,Daniel Ayalew & Deininger,Klaus W. & Harris,Charles Anthony Philip, 2016. "Large farm establishment, smallholder productivity, labor market participation, and resilience : evidence from Ethiopia," Policy Research Working Paper Series 7576, The World Bank.
    3. 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.
    4. Ali, Daniel Ayalew & Deininger, Klaus & Harris, Anthony, 2017. "Using National Statistics to Increase Transparency of Large Land Acquisition: Evidence from Ethiopia," World Development, Elsevier, vol. 93(C), pages 62-74.
    5. 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.
    6. Jana Brandt & Jonas Possmann, 2017. "Großflächige Agrarinvestitionen in Entwicklungsländern: Ausmaß, Akteure und Land Governance," MAGKS Papers on Economics 201714, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    7. Glover, Steven & Jones, Sam, 2019. "Can commercial farming promote rural dynamism in sub-Saharan Africa? Evidence from Mozambique," World Development, Elsevier, vol. 114(C), pages 110-121.
    8. 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.
    9. Herrmann, Raoul T., 2017. "Large-Scale Agricultural Investments and Smallholder Welfare: A Comparison of Wage Labor and Outgrower Channels in Tanzania," World Development, Elsevier, vol. 90(C), pages 294-310.
    10. Nolte, Kerstin & Ostermeier, Martin, 2017. "Labour Market Effects of Large-Scale Agricultural Investment: Conceptual Considerations and Estimated Employment Effects," World Development, Elsevier, vol. 98(C), pages 430-446.
    11. Gasparatos, A. & von Maltitz, G.P. & Johnson, F.X. & Lee, L. & Mathai, M. & Puppim de Oliveira, J.A. & Willis, K.J., 2015. "Biofuels in sub-Sahara Africa: Drivers, impacts and priority policy areas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 879-901.
    12. Sitko, Nicholas J. & Chamberlin, Jordan & Mulenga, Brian, 2015. "Unpacking the Growth of Medium-scale Farms Zambia: What Are the Implications for the Future of Smallholder Agriculture?," Food Security Collaborative Working Papers 212901, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    13. Michael Brüntrup & Fabian Schwarz & Thomas Absmayr & Jonas Dylla & Franziska Eckhard & Kerstin Remke & Konrad Sternisko, 2018. "Nucleus-outgrower schemes as an alternative to traditional smallholder agriculture in Tanzania – strengths, weaknesses and policy requirements," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 807-826, August.
    14. Marcin Pawel Jarzebski & Abubakari Ahmed & Yaw Agyeman Boafo & Boubacar Siddighi Balde & Linda Chinangwa & Osamu Saito & Graham Maltitz & Alexandros Gasparatos, 2020. "Food security impacts of industrial crop production in sub-Saharan Africa: a systematic review of the impact mechanisms," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(1), pages 105-135, February.
    15. Kleemann, Linda & Thiele, Rainer, 2015. "Rural welfare implications of large-scale land acquisitions in Africa: A theoretical framework," Economic Modelling, Elsevier, vol. 51(C), pages 269-279.
    16. Negash, Martha & Swinnen, Johan F.M., 2013. "Biofuels and food security: Micro-evidence from Ethiopia," Energy Policy, Elsevier, vol. 61(C), pages 963-976.
    17. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    18. Jayne, Thomas S. & Chamberlin, Jordan & Traub, Lulama & Sitko, N. & Muyanga, Milu & Yeboah, Felix & Nkonde, Chewe & Anseeuw, Ward & Chapoto, Anthony & Kachule, Richard, 2015. "Africa's Changing Farmland Ownership: The Rise of the Emergent Investor Farmer," 2015 Conference, August 9-14, 2015, Milan, Italy 212028, International Association of Agricultural Economists.
    19. Khadjavi, Menusch & Sipangule, Kacana & Thiele, Rainer, 2016. "Social capital and large-scale agricultural investments: An experimental investigation in Zambia," Kiel Working Papers 2056, Kiel Institute for the World Economy (IfW).
    20. Nicholas Sitko & Jordan Chamberlin, 2015. "The Anatomy of Medium-Scale Farm Growth in Zambia: What Are the Implications for the Future of Smallholder Agriculture?," Land, MDPI, Open Access Journal, vol. 4(3), pages 1-19, September.

    More about this item

    Keywords

    Food Security; Crops and Crop Management Systems; Climate Change and Agriculture; Inequality; Hydrology; Rural and Renewable Energy; Renewable Energy;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:7466. 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). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.