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Land Market Integration, Structural Change, and Smallholder Farming in Zambia

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  • Larson, Andrew M.

Abstract

The bifurcation of Zambia's agricultural land markets prevents smallholder farmers from participating in modern food marketing channels. High transaction costs in terms of time and financial resources make conversion of customary land into commercial land title prohibitively expensive for smallholder farmers. The simulated conversion of land title, without changing ownership, instigates a reallocation of capital and labor resources in the modeled economy that benefits smallholders in their roles as producers and household owners of factors of production. With the increase in commercial land area, labor becomes scarce and farm production becomes more capital intensive, thus increasing labor productivity and smallholder household income. This analysis highlights the importance of integrating land markets and giving smallholders an effective increase in the range of their resource allocation decisions.

Suggested Citation

  • Larson, Andrew M., 2014. "Land Market Integration, Structural Change, and Smallholder Farming in Zambia," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170488, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:170488
    DOI: 10.22004/ag.econ.170488
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    References listed on IDEAS

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    1. repec:bla:devpol:v:21:y:2003:i::p:333-355 is not listed on IDEAS
    2. Thomas Reardon & Peter Timmer & Julio Berdegue, 2004. "The Rapid Rise of Supermarkets in Developing Countries: Induced Organizational, Institutional, and Technological Change in Agrifood Systems," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(2), pages 168-183.
    3. Marc F. Bellemare, 2013. "The Productivity Impacts of Formal and Informal Land Rights: Evidence from Madagascar," Land Economics, University of Wisconsin Press, vol. 89(2), pages 272-290.
    4. Hildegunn E. Stokke, 2009. "Multinational supermarket chains in developing countries: does local agriculture benefit?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(6), pages 645-656, November.
    5. Terry Roe & Xinshen Diao, 2004. "Capital Accumulation and Economic Growth: The Case of the Retail Food Industry in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 788-794.
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    Cited by:

    1. Ali,Daniel Ayalew & Deininger,Klaus W., 2021. "Does Title Increase Large Farm Productivity ? Institutional Determinants of Large Land-BasedInvestments’ Performance in Zambia," Policy Research Working Paper Series 9702, The World Bank.
    2. 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).

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    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries; Farm Management; Land Economics/Use; Marketing; Political Economy;
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