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This paper uses farm panel data from China to examine the dynamics of land transactions, machine investments, and the demand for machine services. Recently, China's agriculture has experienced a large expansion of machine rentals and machine services provided by specialized agents, which has contributed to mechanization of agricultural production. The empirical results show that an increase in nonagricultural wage rates leads to expansion of self-cultivated land size. A rise in the proportion of nonagricultural income or the migration rate also increases the size of self-cultivated land. Interestingly, however, relatively educated farm households decrease the size of self-cultivated land, which suggests that relatively less educated farmers tend to specialize in farming. The demand for machine services has also increased if agricultural wage and migration rate increased over time, especially among relatively large farms. The results on crop income support the complementarity between rented-in land and machine services (demanded), which implies that scale economies are arising in Chinese agriculture with mechanization and active land rental markets.
Communities and Human Settlements --- Economic Growth --- Farm Size --- Labor Policies --- Land Rental --- Land Use and Policies --- Machine Services --- Macroeconomics and Economic Growth --- Rural Development --- Rural Development Knowledge and Information Systems --- Social Protections and Labor --- Wage Growth
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Although a large theoretical literature discusses the possible inefficiency of sharecropping contracts, the 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 extremely limited. Our analysis points towards factor market imperfections (no rental for oxen), lack of alternative employment opportunities, and tenure insecurity as possible reasons underlying such behavior, suggesting that, rather than worrying almost exclusively about Marshallian inefficiency, it is equally warranted to give due attention to the policy framework within which land rental markets operate.
Communities & Human Settlements --- Cultivation --- Economic Development --- Labor Policies --- Land Leasing --- Land Markets --- Land Owners --- Land Ownership --- Land Rental --- Land Resources --- Land Use --- Land Use and Policies --- Municipal Housing and Land --- Poverty Reduction --- Rural Development --- Rural Development Knowledge and Information Systems --- Rural Land Policies for Poverty Reduction --- Sharecropping --- Social Protections and Labor
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Smallholder farmers' investment decisions and the efficiency of resource allocation depend on the security of land tenure. This paper develops a simple model that captures essential institutional features of rural land markets in Ghana, including the dependence of future rights over land on current cultivation and land rental decisions. The model predictions guide the evaluation of a pilot land titling intervention that took place in an urbanizing area located in the Central Region of Ghana. The evaluation is based on a regression discontinuity design combined with three rounds of household survey data collected over a period of six years. The analysis finds strong markers for the program's success in registering land in the targeted program area. However, land registration does not translate into agricultural investments or increased credit taking. Instead, treated households decrease their amount of agricultural labor, accompanied by only a small reduction of agricultural production and no changes in productivity. In line with this result, households decrease their landholdings amid a surge in land valuations. The analysis uncovers important within-household differences in how women and men respond differentially to the program. There appears to be a general shift to nonfarm economic activities, and women's business profits increased considerably.
Agricultural Investment --- Agricultural Sector Economics --- Agriculture --- Common Property Resource Development --- Communities and Human Settlements --- Gender --- Gender and Rural Development --- Gender Innovation Lab --- Gender Policy --- Land Administration --- Land Rental --- Land Tenure --- Land Titling --- Land Use and Policies --- Non-Farmeconomic Activity --- Resource Allocation --- Rural Labor Markets --- Rural Land Market --- Rural Land Policies for Poverty Reduction --- Smallholders --- Women
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Although a large theoretical literature discusses the possible inefficiency of sharecropping contracts, the 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 extremely limited. Our analysis points towards factor market imperfections (no rental for oxen), lack of alternative employment opportunities, and tenure insecurity as possible reasons underlying such behavior, suggesting that, rather than worrying almost exclusively about Marshallian inefficiency, it is equally warranted to give due attention to the policy framework within which land rental markets operate.
Communities & Human Settlements --- Cultivation --- Economic Development --- Labor Policies --- Land Leasing --- Land Markets --- Land Owners --- Land Ownership --- Land Rental --- Land Resources --- Land Use --- Land Use and Policies --- Municipal Housing and Land --- Poverty Reduction --- Rural Development --- Rural Development Knowledge and Information Systems --- Rural Land Policies for Poverty Reduction --- Sharecropping --- Social Protections and Labor
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