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The effects of land sales restrictions: evidence from south India

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  • John L. Pender
  • John M. Kerr

Abstract

The effects of land sales restrictions on credit use, land investment and cultivation decisions are investigated using data from two villages in south India. Sales restrictions are found to have little ellect on credit supply and demand or demand tor land improvements. Some household characteristics are found to affect investment demand on plots subject to sales restrictions in one village, suggesting that the ‘transactions effect’ of such restrictions may be inhibiting allocative efficiency. However, we also find that household characteristics influence investment on titled plots, and that the magnitude of impact of such characteristics is greater on titled plots. These results imply that sales restrictions are not a major source of inelficiency in the villages studied, and suggest that the nature of village credit and land markets and enforcement ot sales restrictions are critical determinants of the impacts of such restrictions.

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  • John L. Pender & John M. Kerr, 1999. "The effects of land sales restrictions: evidence from south India," Agricultural Economics, International Association of Agricultural Economists, vol. 21(3), pages 279-294, December.
    • Handle: RePEc:bla:agecon:v:21:y:1999:i:3:p:279-294
    DOI: 10.1111/j.1574-0862.1999.tb00601.x
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    2. Akee, Randall K. Q., 2006. "Checkerboards and Coase: Transactions Costs and Efficiency in Land Markets," IZA Discussion Papers 2438, Institute of Labor Economics (IZA).
    3. Haizi Wang & Chaowei Li & Juan Liu & Shibin Zhang, 2019. "Research on Farmers’ Willingness of Land Transfer Behavior Based on Food Security," Sustainability, MDPI, vol. 11(8), pages 1-17, April.
    4. Petracco, Carly K. & Pender, John, 2009. "Evaluating the impact of land tenure and titling on access to credit in Uganda:," IFPRI discussion papers 853, International Food Policy Research Institute (IFPRI).
    5. Perego, Viviana M.E., 2019. "Crop prices and the demand for titled land: Evidence from Uganda," Journal of Development Economics, Elsevier, vol. 137(C), pages 93-109.
    6. Pender, John L., 1999. "Rural population growth, agricultural change and natural resource management in developing countries: a review of hypotheses and some evidence from Honduras," EPTD discussion papers 48, International Food Policy Research Institute (IFPRI).
    7. World Bank, 2005. "Uganda : Policy Options for Increasing Crop Productivity and Reducing Soil Nutrient Depletion and Poverty," World Bank Publications - Reports 8647, The World Bank Group.
    8. Misha Saleem, 2011. "The Effect of Ownership Rights on Urban Households' Access to Credit in Lahore," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(2), pages 111-139, Jul-Dec.
    9. Emran, M. Shahe & Shilpi, Forhad, 2015. "Do Land Market Restrictions Hinder Structural Change in a Rural Economy? Evidence from Sri Lanka," MPRA Paper 66017, University Library of Munich, Germany.
    10. Conning, Jonathan & Udry, Christopher, 2007. "Rural Financial Markets in Developing Countries," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 56, pages 2857-2908, Elsevier.
    11. Pender, John & Ssewanyana, Sarah & Edward, Kato & Nkonya, Ephraim M., 2004. "Linkages between poverty and land management in rural Uganda: evidence from the Uganda National Household Survey, 1999/00," EPTD discussion papers 122, International Food Policy Research Institute (IFPRI).
    12. Nkonya, Ephraim M. & Pender, John & Kato, Edward & Mugarura, Samuel & Muwonge, James, 2005. "Who knows, who cares?: determinants of enactment, awareness and compliance with community natural resource management," CAPRi working papers 41, International Food Policy Research Institute (IFPRI).
    13. Pender, John L. & Benin, Samuel, 2001. "Impacts Of Land Resdistribution On Land Management And Productivity In The Ethiopian Highlands," 2001 Annual meeting, August 5-8, Chicago, IL 20701, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Jian Cheng & Jiangmeng Zhao, 2023. "How Does Land Monopoly Reduce Consumption Levels? Evidence from China," Land, MDPI, vol. 12(9), pages 1-20, August.
    15. World Bank, 2008. "Uganda Sustainable Land Management : Public Expenditure Review," World Bank Publications - Reports 16807, The World Bank Group.
    16. Pender, John & Nkonya, Ephraim & Jagger, Pamela & Sserunkuuma, Dick & Ssali, Henry, 2004. "Strategies to increase agricultural productivity and reduce land degradation: evidence from Uganda," Agricultural Economics, Blackwell, vol. 31(2-3), pages 181-195, December.
    17. Rohini Pande & Christopher Udry, 2005. "Institutions and Development:A View from Below," Working Papers 928, Economic Growth Center, Yale University.
    18. Nakasone, Eduardo, 2011. "The impact of land titling on labor allocation: Evidence from rural Peru," IFPRI discussion papers 1111, International Food Policy Research Institute (IFPRI).
    19. Kemper, Niels & Klump, Rainer & Schumacher, Heiner, 2011. "Representation of property rights and credit market outcomes: Evidence from a land reform in Vietnam," Proceedings of the German Development Economics Conference, Berlin 2011 45, Verein für Socialpolitik, Research Committee Development Economics.

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