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

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  • 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.

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  • 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
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    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.

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    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

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