Productivity effects of land rental markets in Ethiopia : Evidence from a matched tenant-landlord sample, Volume 1
Author:Deininger, Klaus; Ali, Daniel Ayalew; Alemu, Tekie; Country:Ethiopia;
Date Stored:2011/07/18Document Date:2011/07/01
Document Type:Policy Research Working PaperSubTopics:Labor Policies; Economic Theory & Research; Land and Real Estate Development; Municipal Housing and Land; Real Estate Development
Language:EnglishMajor Sector:Public Administration, Law, and Justice; Finance; Agriculture, fishing, and forestry
Rel. Proj ID:1W-Land Policies For Growth And Poverty Reduction: Moving Towards -- -- P095390;Region:Africa
Report Number:WPS5727Sub Sectors:General agriculture, fishing and forestry sector; Housing finance; General public administration sector
Collection Title:Policy Research working paper ; no. WPS 5727TF No/Name:TF092028-GENDER; TF097647-India Gendered impacts of NREGA; TF095610-Computerization; TF092663-EVALUATING THE EFFECTIVENESS OF SUSTAINABLE LAND MANAGEMENT INTERVENTIO; TF098469-New Approaches to securing land tenure in Sub-Saharan Africa; TF098730-BNPP-GENDER; TF091531-GENDER; TF091533-GENDER; TF096734-Impact Evaluation of Land Tenure Regularization in Rwanda
Volume No:1  

Summary: 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.

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