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Small Farms, Large Transaction Costs: Haiti’s Missing Sugar

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  • Palsson, Craig

Abstract

In the eighteenth century, Haiti was the world’s leading sugar producer, but when cane surged in the Caribbean in the early twentieth century, Haiti produced none. Instead, the land sat idle while workers emigrated to work on sugar plantations. I examine the hypothesis that historical property rights institutions created high transaction costs for converting land to cane production. I collect new data on land-use from 1928–1950 and a proxy for transaction costs. The evidence suggests transaction costs impeded the land market from responding to the sugar boom.

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  • Palsson, Craig, 2021. "Small Farms, Large Transaction Costs: Haiti’s Missing Sugar," The Journal of Economic History, Cambridge University Press, vol. 81(2), pages 513-548, June.
    • Handle: RePEc:cup:jechis:v:81:y:2021:i:2:p:513-548_6
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    Cited by:

    1. Ali, Daniel Ayalew & Deininger, Klaus, 2022. "Institutional determinants of large land-based investments’ performance in Zambia: Does title enhance productivity and structural transformation?," World Development, Elsevier, vol. 157(C).
    2. Palsson, Craig, 2023. "The forces of path dependence: Haiti's refugee camps, 1937–2009," Explorations in Economic History, Elsevier, vol. 89(C).

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