IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v91y2020ics0264837719312360.html
   My bibliography  Save this article

Efficiency and equity of rural land markets and the impact on income: Evidence in Kenya and Uganda from 2003 to 2015

Author

Listed:
  • Kijima, Yoko
  • Tabetando, Rayner

Abstract

This study examines the evolution of land sales and rental markets and their impact on agricultural efficiency in rural Kenya and Uganda using panel data spanning over 10 years. Both countries show that land markets induce efficiency by transferring land to households with higher farming ability. In both countries, land markets enhance equity by transferring land from land-abundant to land-constrained households. Although renting in land increases crop income in Kenya, we find no evidence that it enables households to escape from poverty. In contrast, increase in owned land helped decrease poverty in Uganda. Parcel-level analysis reveals that rented-in land and owned land differ in productivity levels and crop choice. These findings point to the potential weaknesses in the land markets in Kenya and Uganda that impede their ability to contribute to poverty alleviation.

Suggested Citation

  • Kijima, Yoko & Tabetando, Rayner, 2020. "Efficiency and equity of rural land markets and the impact on income: Evidence in Kenya and Uganda from 2003 to 2015," Land Use Policy, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:lauspo:v:91:y:2020:i:c:s0264837719312360
    DOI: 10.1016/j.landusepol.2019.104416
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837719312360
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.landusepol.2019.104416?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Baland, Jean-Marie & Gaspart, Frederic & Platteau, Jean-Philippe & Place, Frank, 2007. "The Distributive Impact of Land Markets in Uganda," Economic Development and Cultural Change, University of Chicago Press, vol. 55(2), pages 283-311, January.
    2. Lanjouw, Jean Olson, 1999. "Information and the operation of markets: tests based on a general equilibrium model of land leasing in India," Journal of Development Economics, Elsevier, vol. 60(2), pages 497-527, December.
    3. Klaus Deininger & Songqing Jin, 2008. "Land Sales and Rental Markets in Transition: Evidence from Rural Vietnam," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(1), pages 67-101, February.
    4. Jordan Chamberlin & Jacob Ricker-Gilbert, 2016. "Participation in Rural Land Rental Markets in Sub-Saharan Africa: Who Benefits and by How Much? Evidence from Malawi and Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1507-1528.
    5. Pinckney, Thomas C & Kimuyu, Peter K, 1994. "Land Tenure Reform in East Africa: Good, Bad or Unimportant?," Journal of African Economies, Centre for the Study of African Economies, vol. 3(1), pages 1-28, April.
    6. Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
    7. Alain de Janvry & Kyle Emerick & Marco Gonzalez-Navarro & Elisabeth Sadoulet, 2015. "Delinking Land Rights from Land Use: Certification and Migration in Mexico," American Economic Review, American Economic Association, vol. 105(10), pages 3125-3149, October.
    8. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
    9. John Herbert Ainembabazi & Arild Angelsen, 2016. "Land Inheritance and Market Transactions in Uganda," Land Economics, University of Wisconsin Press, vol. 92(1), pages 28-56.
    10. Benin, Samuel & Place, Frank & Nkonya, Ephraim M. & Pender, John L., 2006. "Land Markets and Agricultural Land Use Efficiency and Sustainability: Evidence from East Africa," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25645, International Association of Agricultural Economists.
    11. Bliss, C. J. & Stern, N. H., 1982. "Palanpur: The Economy of an Indian Village," OUP Catalogue, Oxford University Press, number 9780198284192.
    12. Emmanuel Skoufias, 1995. "Household Resources, Transaction Costs, and Adjustment through Land Tenancy," Land Economics, University of Wisconsin Press, vol. 71(1), pages 42-56.
    13. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    14. Deininger, Klaus & Hilhorst, Thea & Songwe, Vera, 2014. "Identifying and addressing land governance constraints to support intensification and land market operation: Evidence from 10 African countries," Food Policy, Elsevier, vol. 48(C), pages 76-87.
    15. Muraoka, Rie & Jin, Songqing & Jayne, T.S., 2018. "Land access, land rental and food security: Evidence from Kenya," Land Use Policy, Elsevier, vol. 70(C), pages 611-622.
    16. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    17. Suri, Tavneet & Tschirley, David L. & Irungu, Charity & Gitau, Raphael & Kariuki, Daniel, 2008. "Rural Incomes, Inequality and Poverty Dynamics in Kenya," Working Papers 202613, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    18. Jacob Ricker-Gilbert & Jordan Chamberlin, 2018. "Transaction Costs, Land Rental Markets, and Their Impact on Youth Access to Agriculture in Tanzania," Land Economics, University of Wisconsin Press, vol. 94(4), pages 541-555.
    19. Songqing Jin & T. S. Jayne, 2013. "Land Rental Markets in Kenya: Implications for Efficiency, Equity, Household Income, and Poverty," Land Economics, University of Wisconsin Press, vol. 89(2), pages 246-271.
    20. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    21. Baland, Jean-Marie & Gaspart, Frederic & Platteau, Jean-Philippe & Place, Frank, 2007. "The Distributive Impact of Land Markets in Uganda," Economic Development and Cultural Change, University of Chicago Press, vol. 55(2), pages 283-311, January.
    22. Deininger, Klaus & Savastano, Sara & Xia, Fang, 2017. "Smallholders’ land access in Sub-Saharan Africa: A new landscape?," Food Policy, Elsevier, vol. 67(C), pages 78-92.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. CAO, Yu & Zou, Jie & Fang, Xiaoqian & Wang, Jiayi & Cao, Yu & Li, Guoyu, 2020. "Effect of land tenure fragmentation on the decision-making and scale of agricultural land transfer in China," Land Use Policy, Elsevier, vol. 99(C).
    2. Xia, Fangzhou & Huang, Jing & Zhang, Zhengfeng, 2024. "Government concerns, the benefit cliff, and land use: A comparative study of rural impoverished and marginalised impoverished groups," Land Use Policy, Elsevier, vol. 140(C).
    3. Shichao Yuan & Jian Wang, 2022. "Involution Effect: Does China’s Rural Land Transfer Market Still Have Efficiency?," Land, MDPI, vol. 11(5), pages 1-18, May.
    4. Chaozheng Zhang & Danling Chen, 2021. "Fragmentation Reduction through Farmer-Led Land Transfer and Consolidation? Experiences of Rice Farmers in Wuhan Metropolitan Area, China," Agriculture, MDPI, vol. 11(7), pages 1-14, July.
    5. Wenjing Han & Zhengfeng Zhang & Xiaoling Zhang & Li He, 2021. "Farmland Rental Participation, Agricultural Productivity, and Household Income: Evidence from Rural China," Land, MDPI, vol. 10(9), pages 1-22, August.
    6. Lucie Severová & Karel Šrédl & Marie Prášilová & Michal Štěbeták & Roman Svoboda & Dita Hommerová & Lenka Kopecká, 2021. "The Influence of the Growth of the Number of Microbreweries on the Use of Farmland and on the Cultivation of Hops in the Czech Republic: A Case Study," Land, MDPI, vol. 10(8), pages 1-17, July.
    7. K. Kareemulla & Pandian Krishnan & S. Ravichandran & B. Ganesh Kumar & Sweety Sharma & Ramachandra Bhatta, 2021. "Spatiotemporal Analysis of Size and Equity in Ownership Dynamics of Agricultural Landholdings in India Vis-à-Vis the World," Sustainability, MDPI, vol. 13(18), pages 1-25, September.
    8. Lian Ke & Shan Cheng & Diqiang Chen & Ying Li, 2023. "Why Is the Income Effect of Farmland Transfer Inconsistent between Transferred-Out and Transferred-In Households?," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    9. Lili Chen & Hongsheng Chen & Chaohui Zou & Ye Liu, 2021. "The Impact of Farmland Transfer on Rural Households’ Income Structure in the Context of Household Differentiation: A Case Study of Heilongjiang Province, China," Land, MDPI, vol. 10(4), pages 1-20, April.
    10. Wenjing Han & Yang Fu & Wen Sun, 2023. "Farmland Transfer Participation and Rural Well-Being Inequality: Evidence from Rural China with the Capability Approach," Land, MDPI, vol. 12(7), pages 1-21, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wineman, Ayala & Liverpool-Tasie, Lenis Saweda, 2017. "Land markets and the distribution of land in northwestern Tanzania," Land Use Policy, Elsevier, vol. 69(C), pages 550-563.
    2. Muraoka, Rie & Jin, Songqing & Jayne, T.S., 2018. "Land access, land rental and food security: Evidence from Kenya," Land Use Policy, Elsevier, vol. 70(C), pages 611-622.
    3. Ricker-Gilbert, Jacob & Lunduka, Rodney W. & Kanyamuka, Joseph Samuel & Jumbe, Charles & Kaiyatsa, Stevier & Chamberlin, Jordan, 2017. "Do Farm Land Rental Markets Really Promote Efficiency, Equity and Investment in Smallholder African Agriculture? Evidence from a Matched Tenant-Landlord Survey in Malawi," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258391, Agricultural and Applied Economics Association.
    4. Wineman, Ayala & Liverpool-Tasie, Lenis Saweda, 2016. "Land Markets and Equity of Land Distribution in Northwestern Tanzania," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235893, Agricultural and Applied Economics Association.
    5. Abay, Kibrom A. & Chamberlin, Jordan & Berhane, Guush, 2021. "Are land rental markets responding to rising population pressures and land scarcity in sub-Saharan Africa?," Land Use Policy, Elsevier, vol. 101(C).
    6. Bosco Bashangwa Mpozi & Mireille Mizero & Andrew Ogolla Egesa & Paul M. Dontsop Nguezet & Bernard Vanlauwe & Patrice Ndimanya & Philippe Lebailly, 2020. "Land Access in the Development of Horticultural Crops in East Africa. A Case Study of Passion Fruit in Burundi, Kenya, and Rwanda," Sustainability, MDPI, vol. 12(7), pages 1-18, April.
    7. Licheng Xu & Xiaodong Du, 2022. "Land certification, rental market participation, and household welfare in rural China," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 52-71, January.
    8. Deininger, Klaus & Savastano, Sara & Xia, Fang, 2017. "Smallholders’ land access in Sub-Saharan Africa: A new landscape?," Food Policy, Elsevier, vol. 67(C), pages 78-92.
    9. Oliver Schulte & Trung Thanh Nguyen & Ulrike Grote, 2022. "The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 2878-2898, December.
    10. Sarah E. Tione & Stein T. Holden, 2021. "Can rainfall shocks enhance access to rented land? Evidence from Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 52(6), pages 1013-1028, November.
    11. Wenjing Han & Zhengfeng Zhang & Xiaoling Zhang & Li He, 2021. "Farmland Rental Participation, Agricultural Productivity, and Household Income: Evidence from Rural China," Land, MDPI, vol. 10(9), pages 1-22, August.
    12. Wineman, Ayala & Liverpool-Tasie, Lenis Saweda O., 2017. "Land Markets and Land Access Among Female-Headed Households in Northwestern Tanzania," World Development, Elsevier, vol. 100(C), pages 108-122.
    13. Shaikh M. S. U. Eskander & Edward B. Barbier, 2023. "Adaptation to Natural Disasters through the Agricultural Land Rental Market: Evidence from Bangladesh," Land Economics, University of Wisconsin Press, vol. 99(1), pages 141-160.
    14. Duangbootsee, U., 2018. "The Land Rental Market in Thai Agriculture and Its Impact on Household Welfare," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277349, International Association of Agricultural Economists.
    15. Alia, Didier & Kusunose, Yoko & Theriault, Veronique, 2016. "Land rental, farm investment, productivity, and efficiency in Burkina Faso," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236169, Agricultural and Applied Economics Association.
    16. Ayala-Cantu, Luciano & Morando, Bruno, 2020. "Rental markets, gender, and land certificates: Evidence from Vietnam," Food Policy, Elsevier, vol. 94(C).
    17. Jianyun Hou & Xuexi Huo & Runsheng Yin, 2017. "Land Rental Market Participation and Its Impact on Fixed Investment and Household Welfare: Evidence from Chinese Apple Production Sites," Sustainability, MDPI, vol. 9(11), pages 1-15, October.
    18. Francis Mwesigye & Tomoya Matsumoto & Keijiro Otsuka, 2014. "Population Pressure, Rural-to-Rural Migration and Evolution of Land Tenure Institutions: The Case of Uganda," GRIPS Discussion Papers 14-09, National Graduate Institute for Policy Studies.
    19. Sarah Ephrida Tione, 2020. "Agricultural Resources and Trade Strategies: Response to Falling Land-to-Labor Ratios in Malawi," Land, MDPI, vol. 9(12), pages 1-32, December.
    20. Chamberlin, Jordan & Ricker-Gilbert, Jacob E., 2015. "What are the Drivers of Rural Land Rental Markets in sub-Saharan Africa, and how do they Impact Household Welfare? Evidence from Malawi and Zambia," 2015 Conference, August 9-14, 2015, Milan, Italy 211454, International Association of Agricultural Economists.

    More about this item

    Keywords

    Land markets; Agriculture; Poverty; Uganda; Kenya;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:91:y:2020:i:c:s0264837719312360. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.