Efficiency and Equity Impacts of Rural Land Rental Restrictions : Evidence from India
Recognition of the potentially deleterious implications of inequality in opportunity originating in a skewed asset distribution has spawned considerable interest in land reforms. However, little attention has been devoted to fact that, in the longe...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2007/08/8113927/efficiency-equity-impacts-rural-land-rental-restrictions-evidence-india http://hdl.handle.net/10986/7275 |
| Summary: | Recognition of the potentially
deleterious implications of inequality in opportunity
originating in a skewed asset distribution has spawned
considerable interest in land reforms. However, little
attention has been devoted to fact that, in the longer term,
the measures used to implement land reforms could negatively
affect productivity. Use of state level data on rental
restrictions, together with a nationally representative
survey from India, suggests that, contrary to original
intentions, rental restrictions negatively affect
productivity and equity. The restrictions reduce the scope
for efficiency-enhancing rental transactions that benefit
poor producers. Simulations suggest that, by doubling the
number of producers with access to land through rental, from
about 15 million currently, liberalization of rental markets
could have far-reaching impacts. |
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