Assessing the Functioning of Land Rental Markets in Ethiopia

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...

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Main Authors:	Deininger, Klaus, Ali, Daniel Ayalew, Alemu, Tekie
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Land Ownership and Tenure Land Reform Land Use Irrigation Agriculture and Environment Q150 Agricultural Policy Food Policy Q180
Online Access:	http://hdl.handle.net/10986/5614

id	okr-10986-5614
recordtype	oai_dc
spelling	okr-10986-56142021-04-23T14:02:23Z Assessing the Functioning of Land Rental Markets in Ethiopia Deininger, Klaus Ali, Daniel Ayalew Alemu, Tekie Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Land Ownership and Tenure Land Reform Land Use Irrigation Agriculture and Environment Q150 Agricultural Policy Food Policy Q180 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. 2012-03-30T07:33:41Z 2012-03-30T07:33:41Z 2008 Journal Article Economic Development and Cultural Change 00130079 http://hdl.handle.net/10986/5614 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Ethiopia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Land Ownership and Tenure Land Reform Land Use Irrigation Agriculture and Environment Q150 Agricultural Policy Food Policy Q180
spellingShingle	Production Cost Capital, Total Factor, and Multifactor Productivity Capacity D240 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Land Ownership and Tenure Land Reform Land Use Irrigation Agriculture and Environment Q150 Agricultural Policy Food Policy Q180 Deininger, Klaus Ali, Daniel Ayalew Alemu, Tekie Assessing the Functioning of Land Rental Markets in Ethiopia
geographic_facet	Ethiopia
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	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.
format	Journal Article
author	Deininger, Klaus Ali, Daniel Ayalew Alemu, Tekie
author_facet	Deininger, Klaus Ali, Daniel Ayalew Alemu, Tekie
author_sort	Deininger, Klaus
title	Assessing the Functioning of Land Rental Markets in Ethiopia
title_short	Assessing the Functioning of Land Rental Markets in Ethiopia
title_full	Assessing the Functioning of Land Rental Markets in Ethiopia
title_fullStr	Assessing the Functioning of Land Rental Markets in Ethiopia
title_full_unstemmed	Assessing the Functioning of Land Rental Markets in Ethiopia
title_sort	assessing the functioning of land rental markets in ethiopia
publishDate	2012
url	http://hdl.handle.net/10986/5614
_version_	1764395679350784000

Assessing the Functioning of Land Rental Markets in Ethiopia

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