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Oligarchic land ownership, entrepreneurship, and economic development

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  • Falkinger, Josef
  • Grossmann, Volker

Abstract

This paper develops a theory in which oligarchic ownership of land or other natural resources may impede entrepreneurship in the manufacturing sector and may thereby retard structural change and economic development. We show that, due to oligopsony power of owners in the agricultural labor market, higher ownership concentration depresses entrepreneurial investments by landless, credit-constrained households, whose investment possibilities depend on the income earned in the primary sector. We discuss historical evidence from Latin America, India, Taiwan and South Korea which supports our theory.

Suggested Citation

  • Falkinger, Josef & Grossmann, Volker, 2013. "Oligarchic land ownership, entrepreneurship, and economic development," Journal of Development Economics, Elsevier, vol. 101(C), pages 206-215.
    • Handle: RePEc:eee:deveco:v:101:y:2013:i:c:p:206-215
    DOI: 10.1016/j.jdeveco.2012.11.003
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    References listed on IDEAS

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    Cited by:

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    3. Falkinger Josef, 2023. "Gibt es die Marktwirtschaft noch? : Ein Versuch über politische Ökonomie im einundzwanzigsten Jahrhundert," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 24(1), pages 110-128, April.
    4. Marii Rasva & Evelin Jürgenson, 2022. "Europe’s Large-Scale Land Acquisitions and Bibliometric Analysis," Agriculture, MDPI, vol. 12(6), pages 1-13, June.
    5. Xiong, Jiacai & Huang, Ling & Yang, Zelin & Wang, Xin, 2024. "The impact of local government debt on entrepreneurship: Evidence from a quasi-natural experiment of local debt governance reform," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 501-519.
    6. Marii Rasva & Evelin Jürgenson, 2022. "Agricultural Land Concentration in Estonia and Its Containment Possibilities," Land, MDPI, vol. 11(12), pages 1-15, December.
    7. Ullah, Inayat & Hussain, Saqib, 2023. "Impact of early access to land record information through digitization: Evidence from Alternate Dispute Resolution Data in Punjab, Pakistan," Land Use Policy, Elsevier, vol. 134(C).
    8. Marco Percoco, 2015. "Entrepreneurship, Family Ties, and Land Inequality: Evidence from Italy," Growth and Change, Wiley Blackwell, vol. 46(3), pages 443-457, September.

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    More about this item

    Keywords

    Credit constraints; Entrepreneurship; Oligopsony power; Land concentration; Structural change;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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