Productivity Effects of Land Rental Markets in Ethiopia : Evidence from a Matched Tenant-Landlord Sample

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 ar...

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Main Authors: Deininger, Klaus, Ali, Daniel Ayalew, Alemu, Tekie
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110718144352
http://hdl.handle.net/10986/3491
id okr-10986-3491
recordtype oai_dc
spelling okr-10986-34912021-04-23T14:02:10Z Productivity Effects of Land Rental Markets in Ethiopia : Evidence from a Matched Tenant-Landlord Sample Deininger, Klaus Ali, Daniel Ayalew Alemu, Tekie ACCOUNTING AGENTS AGRICULTURE ASSETS AVERAGE PRODUCTIVITY BARRIERS TO ENTRY COMPARATIVE ADVANTAGE CONSTANT RETURNS TO SCALE CONTRACTUAL ARRANGEMENTS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DRIVERS ECONOMETRIC ANALYSIS ECONOMETRIC MODELS ECONOMIC GROWTH ECONOMICS EFFICIENT OUTCOMES EMPLOYMENT FACTOR MARKETS FAMILY LABOR FUTURE RESEARCH GENERAL EQUILIBRIUM GINI COEFFICIENT HOUSEHOLDS INCENTIVE EFFECTS INCOME INEFFICIENCY INSURANCE LABOR MARKETS LABOR MOVEMENT LABOR PRODUCTIVITY LAND TENURE LAND USE LANDLORDS LEASING MONITORING COSTS MORAL HAZARD OUTPUTS PERFECT INFORMATION POINTS POLITICAL ECONOMY PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTIVITY RESIDUAL RISK RISK AVERSION RISK NEUTRAL SCALE EFFECT SOCIAL CAPITAL STRUCTURAL CHANGE TENANTS VARIABLE INPUTS WEALTH 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. 2012-03-19T18:03:23Z 2012-03-19T18:03:23Z 2011-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110718144352 http://hdl.handle.net/10986/3491 English Policy Research working paper ; no. WPS 5727 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Sub-Saharan Africa East Africa Ethiopia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTING
AGENTS
AGRICULTURE
ASSETS
AVERAGE PRODUCTIVITY
BARRIERS TO ENTRY
COMPARATIVE ADVANTAGE
CONSTANT RETURNS TO SCALE
CONTRACTUAL ARRANGEMENTS
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DRIVERS
ECONOMETRIC ANALYSIS
ECONOMETRIC MODELS
ECONOMIC GROWTH
ECONOMICS
EFFICIENT OUTCOMES
EMPLOYMENT
FACTOR MARKETS
FAMILY LABOR
FUTURE RESEARCH
GENERAL EQUILIBRIUM
GINI COEFFICIENT
HOUSEHOLDS
INCENTIVE EFFECTS
INCOME
INEFFICIENCY
INSURANCE
LABOR MARKETS
LABOR MOVEMENT
LABOR PRODUCTIVITY
LAND TENURE
LAND USE
LANDLORDS
LEASING
MONITORING COSTS
MORAL HAZARD
OUTPUTS
PERFECT INFORMATION
POINTS
POLITICAL ECONOMY
PRODUCTION FUNCTION
PRODUCTION FUNCTIONS
PRODUCTIVITY
RESIDUAL RISK
RISK AVERSION
RISK NEUTRAL
SCALE EFFECT
SOCIAL CAPITAL
STRUCTURAL CHANGE
TENANTS
VARIABLE INPUTS
WEALTH
spellingShingle ACCOUNTING
AGENTS
AGRICULTURE
ASSETS
AVERAGE PRODUCTIVITY
BARRIERS TO ENTRY
COMPARATIVE ADVANTAGE
CONSTANT RETURNS TO SCALE
CONTRACTUAL ARRANGEMENTS
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DRIVERS
ECONOMETRIC ANALYSIS
ECONOMETRIC MODELS
ECONOMIC GROWTH
ECONOMICS
EFFICIENT OUTCOMES
EMPLOYMENT
FACTOR MARKETS
FAMILY LABOR
FUTURE RESEARCH
GENERAL EQUILIBRIUM
GINI COEFFICIENT
HOUSEHOLDS
INCENTIVE EFFECTS
INCOME
INEFFICIENCY
INSURANCE
LABOR MARKETS
LABOR MOVEMENT
LABOR PRODUCTIVITY
LAND TENURE
LAND USE
LANDLORDS
LEASING
MONITORING COSTS
MORAL HAZARD
OUTPUTS
PERFECT INFORMATION
POINTS
POLITICAL ECONOMY
PRODUCTION FUNCTION
PRODUCTION FUNCTIONS
PRODUCTIVITY
RESIDUAL RISK
RISK AVERSION
RISK NEUTRAL
SCALE EFFECT
SOCIAL CAPITAL
STRUCTURAL CHANGE
TENANTS
VARIABLE INPUTS
WEALTH
Deininger, Klaus
Ali, Daniel Ayalew
Alemu, Tekie
Productivity Effects of Land Rental Markets in Ethiopia : Evidence from a Matched Tenant-Landlord Sample
geographic_facet Africa
Africa
Sub-Saharan Africa
East Africa
Ethiopia
relation Policy Research working paper ; no. WPS 5727
description 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.
format Publications & Research :: Policy Research Working Paper
author Deininger, Klaus
Ali, Daniel Ayalew
Alemu, Tekie
author_facet Deininger, Klaus
Ali, Daniel Ayalew
Alemu, Tekie
author_sort Deininger, Klaus
title Productivity Effects of Land Rental Markets in Ethiopia : Evidence from a Matched Tenant-Landlord Sample
title_short Productivity Effects of Land Rental Markets in Ethiopia : Evidence from a Matched Tenant-Landlord Sample
title_full Productivity Effects of Land Rental Markets in Ethiopia : Evidence from a Matched Tenant-Landlord Sample
title_fullStr Productivity Effects of Land Rental Markets in Ethiopia : Evidence from a Matched Tenant-Landlord Sample
title_full_unstemmed Productivity Effects of Land Rental Markets in Ethiopia : Evidence from a Matched Tenant-Landlord Sample
title_sort productivity effects of land rental markets in ethiopia : evidence from a matched tenant-landlord sample
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110718144352
http://hdl.handle.net/10986/3491
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