Publication: Assessing the Functioning of Land Rental Markets in Ethiopia
No Thumbnail Available
Date
2008
ISSN
00130079
Published
2008
Author(s)
Editor(s)
Abstract
Although a large theoretical literature discusses the possible inefficiency of sharecropping contracts, empirical evidence on this phenomenon has been ambiguous at best. Household-level fixed-effect estimates from about 8,500 plots operated by households that own and sharecrop land in the Ethiopian highlands provide support for the hypothesis of Marshallian inefficiency. At the same time, a factor adjustment model suggests that the extent to which rental markets allow households to attain their desired operational holding size is limited. Our analysis points toward factor market imperfections (no rental for oxen), lack of alternative employment opportunities, and tenure insecurity as possible reasons underlying such an outcome. They suggest that, rather than worrying only about Marshallian inefficiency, attention to the broader environment and policy framework within which producers can adjust to their optimum operational area will be warranted.
Link to Data Set
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Citations
Collections
Related items
Showing items related by metadata.
Publication Assessing the Functioning of Land Rental Markets in Ethiopia(World Bank, Washington, DC, 2007-12)Although a large theoretical literature discusses the possible inefficiency of sharecropping contracts, the empirical evidence on this phenomenon has been ambiguous at best. Household-level fixed-effect estimates from about 8,500 plots operated by households that own and sharecrop land in the Ethiopian highlands provide support for the hypothesis of Marshallian inefficiency. At the same time, a factor adjustment model suggests that the extent to which rental markets allow households to attain their desired operational holding size is extremely limited. Our analysis points towards factor market imperfections (no rental for oxen), lack of alternative employment opportunities, and tenure insecurity as possible reasons underlying such behavior, suggesting that, rather than worrying almost exclusively about Marshallian inefficiency, it is equally warranted to give due attention to the policy framework within which land rental markets operate.Publication Impacts of Land Certification on Tenure Security: Investment, and Land Market Participation : Evidence from Ethiopia(2011)While early attempts at land titling in Africa were often unsuccessful, factors such as new legislation, low-cost methods, and increasing demand for land have generated renewed interest. A four-period panel allows use of a pipeline and difference-indifferences approach to assess impacts of land registration in Ethiopia. We find that the program increased tenure security, land-related investment, and rental market participation and yielded benefits significantly above the cost of implementation.Publication Impacts of Land Certification on Tenure Security, Investment, and Land Markets : Evidence from Ethiopia(World Bank, Washington, DC, 2008-10)Although early attempts at land titling in Africa were often unsuccessful, the need to secure rights in view of increased demand for land, options for registration of a continuum of individual or communal rights under new laws, and the scope for reducing costs by combining information technology with participatory methods have led to renewed interest. This paper uses a difference-in-difference approach to assess economic impacts of a low-cost registration program in Ethiopia that, over 5 years, covered some 20 million parcels. Despite policy constraints, the program increased tenure security, land-related investment, and rental market participation and yielded benefits significantly above the cost of implementation.Publication Productivity Effects of Land Rental Markets in Ethiopia : Evidence from a Matched Tenant-Landlord Sample(2011-07-01)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.Publication Rural Land Certification in Ethiopia: Process, Initial Impact, and Implications for Other African Countries(2008)Although many African countries have recently adopted highly innovative and pro-poor land laws, lack of implementation thwarts their potentially far-reaching impact on productivity, poverty reduction, and governance. We use a representative household survey from Ethiopia where, over a short period, certificates to more than 20 million plots were issued to describe the certification process, explore its incidence and preliminary impact, and quantify the costs. While this provides many suggestions to ensure sustainability and enhance impact, Ethiopia's highly cost-effective first-time registration process provides important lessons.
Users also downloaded
Showing related downloaded files
No results found.