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Large-scale farms and smallholders: Evidence from Zambia

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  • Lay, Jann
  • Nolte, Kerstin
  • Sipangule, Kacana

Abstract

In light of the surge in large-scale farms in developing countries, concerns have been raised that smallholders may be negatively affected. There is, however, very little evidence beyond case studies to support these claims. Drawing on nationally representative household data sets and an inventory of large-scale farms in Zambia, this study investigates the relationship between large-scale farms and smallholders. First, we analyse the geographical contexts of wards that host large-scale farms and show that large-scale farms are found in wards with good infrastructure and soil quality. Second, we adopt a difference-in-differences approach to estimate the impacts of large-scale farms on smallholders' area cultivated, maize yields, and access to fertiliser. We find that smallholders in wards with large-scale farms increase their area cultivated and maize yields, but have lower fertiliser usage. This hints at positive spillovers at the extensive and intensive margins but not at improved access to agricultural inputs. It is likely that these results are also driven by the emergence of medium-scale farms in these regions.

Suggested Citation

  • Lay, Jann & Nolte, Kerstin & Sipangule, Kacana, 2018. "Large-scale farms and smallholders: Evidence from Zambia," Kiel Working Papers 2098, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwkwp:2098
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    References listed on IDEAS

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    Cited by:

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    2. Wegayehu Fitawek & Sheryl Hendriks & Aurélien Reys & Filippo Fossi, 2020. "The effect of large-scale agricultural investments on household food security in Madagascar," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(6), pages 1349-1365, December.
    3. Khadjavi, Menusch & Sipangule, Kacana & Thiele, Rainer, 2020. "Social Capital and Large-Scale Agricultural Investments: An Experimental Investigation," Open Access Publications from Kiel Institute for the World Economy 230937, Kiel Institute for the World Economy (IfW).
    4. Adugna Eneyew Bekele & Liesbeth Dries & Wim Heijman & Dusan Drabik, 2021. "Large scale land investments and food security in agropastoral areas of Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(2), pages 309-327, April.
    5. Liverpool-Tasie, Saweda & Nuhu, Ahmed Salim & Awokuse, Titus O. & Jayne, Thomas S. & Muyanga, Milu & Aromolaran, Adebayo & Adelaja, Adesoji, 2020. "Spillover effects of Medium-Scale Farms on Smallholder Behavior and Welfare: Evidence from Nigeria," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304606, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    large-scale farms; yields; smallholders; spillovers; Zambia;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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