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Does sharecropping affect productivity and long-term investment ? evidence from West Bengal's tenancy reforms, Volume 1
 
Author:Deininger, Klaus; Jin, Songqing; Yadav, Vandana; Country:India;
Date Stored:2012/12/12Document Date:2012/12/01
Document Type:Policy Research Working PaperSubTopics:Political Economy; Labor Policies; Economic Theory & Research; Debt Markets; Municipal Housing and Land
Language:EnglishMajor Sector:Public Administration, Law, and Justice; Agriculture, fishing, and forestry; Finance
Rel. Proj ID:1W-Land Policies For Growth And Poverty Reduction: Moving Towards -- -- P095390;Region:South Asia
Report Number:WPS6293Sub Sectors:General public administration sector; General agriculture, fishing and forestry sector; Housing finance
Collection Title:Policy Research working paper ; no. WPS 6293TF No/Name:TF098730-BNPP-GENDER; TF095610-Computerization; TF097647-India Gendered impacts of NREGA; TF096734-Impact Evaluation of Land Tenure Regularization in Rwanda; TF091531-GENDER; TF098469-New Approaches to securing land tenure in Sub-Saharan Africa; TF091533-GENDER; TF092663-EVALUATING THE EFFECTIVENESS OF SUSTAINABLE LAND MANAGEMENT INTERVENTIO; TF092028-GENDER
Volume No:1  

Summary: Although transfer of agricultural land ownership through land reform had positive impacts on productivity, investment, and political empowerment in many cases, institutional arrangements in West Bengal -- which made tenancy heritable and imposed a prohibition on subleasing -- imply that early land reform benefits may not be sustained and gains from this policy remain well below potential. Data from a listing of 96,000 households in 200 villages, complemented by a detailed survey of 1,800 owner-cum tenants, point toward binding policy constraints and large contemporaneous inefficiency of share tenancy that is exacerbated by strong disincentives to investment. A conservative estimate puts the efficiency losses from such arrangements in any period at 25 percent.

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