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Land Consolidation Reforms: A Natural Experiment on the Economic and Political Effects of Agricultural Mechanization

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  • Gabriel Loumeau

    (ETH Zurich, Department of Management, Technology, and Economics, Leonhardstrasse 21, 8092 Zurich, Switzerland)

Abstract

This paper studies the causal economic and political effects of agricultural mechanization. For identification, it exploits a spatial discontinuity in the intensity of mechanization induced by land consolidation reforms in France between 1945 and 2008. The results suggest that an increase in mechanization leads to long-term growth in population (+9.5%), employment (+15%), and income (+0.5%), but also to an increase in the far-right vote share (+6.1%). To explain the rise in populism despite significant economic growth, the paper shows that mechanization also induces significant immigration flows and changes in social organization (via the decline of the family farm model).

Suggested Citation

  • Gabriel Loumeau, 2022. "Land Consolidation Reforms: A Natural Experiment on the Economic and Political Effects of Agricultural Mechanization," CER-ETH Economics working paper series 22/376, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    • Handle: RePEc:eth:wpswif:22-376
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Mechanization; Natural experiment; Land consolidation; Local activity; Populism;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • N54 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Europe: 1913-

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