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Livestock and Land Share Contracts in a Hindu Society

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  • Aryal, Jeetendra P.

    (PhD Climate Economist-South Asia CIMMYT, WTC building IARI campus, Room no. 223-24, 2nd floor, Pusa Campus)

  • Holden, Stein T.

    (Norwegian University of Life Sciences (UMB))

Abstract

This paper examines factors related to the existence of a livestock rental market in western Nepal and assesses whether this is associated with caste differentiation and land rental market participation. This study brings new empirical evidence of livestock rental market against the established view that such market does not exist due to moral hazard. Theoretical models for asset- rich (high-caste) households, rich in land and livestock, and asset-poor (low-caste) households are presented providing logical explanations for the existence of a livestock rental market and synergies between livestock and land rental market participation. A combination of double hurdle models and bivariate ordered probit models were applied to test the implications of the models. The empirical evidence was found to be consistent with the theoretical models. Land- and livestock-rich (high-caste) households were more likely to rent out land and/or livestock. Land- and livestock-poor and credit constrained (low-caste) households were more likely to rent in livestock and land. Participation in the two markets was positively correlated indicating synergies that may be due to production and transaction cost reducing benefits. The male labor endowment, partly determined by migration, was a major determinant of livestock rental behavior.

Suggested Citation

  • Aryal, Jeetendra P. & Holden, Stein T., 2011. "Livestock and Land Share Contracts in a Hindu Society," CLTS Working Papers 7/11, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 10 Oct 2019.
    • Handle: RePEc:hhs:nlsclt:2011_007
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    3. Hagos, Hosaena Gebru & Holden, Stein T., 2013. "Reverse-share-tenancy and Marshallian Inefficiency: Landowners’ bargaining power and sharecroppers’ productivity," IFPRI discussion papers 1270, International Food Policy Research Institute (IFPRI).
    4. Martin Paul Jr. Tabe‐Ojong & Thomas Heckelei & Sebastian Rasch, 2023. "Aspirations and investments in livestock: Evidence of aspiration failure in Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 54(5), pages 674-696, September.
    5. Rahut, Dil Bahadur & Aryal, Jeetendra Prakash & Manchanda, Navneet & Sonobe, Tetsushi, 2024. "Examining energy justice: Empirical analysis of clean cooking transition across social groups in India, 2004–2018," Renewable and Sustainable Energy Reviews, Elsevier, vol. 193(C).
    6. Bethelhem Legesse Debela, 2017. "Factors Affecting Differences in Livestock Asset Ownership Between Male- and Female-Headed Households in Northern Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(2), pages 328-347, April.
    7. D. Daniel & Arnt Diener & Jack van de Vossenberg & Madan Bhatta & Sara J. Marks, 2020. "Assessing Drinking Water Quality at the Point of Collection and within Household Storage Containers in the Hilly Rural Areas of Mid and Far-Western Nepal," IJERPH, MDPI, vol. 17(7), pages 1-14, March.
    8. Aryal, Jeetendra P. & Holden, Stein T., 2011. "Caste, Land and Labor Market Imperfections, and Land Productivity in Rural Nepal," CLTS Working Papers 6/11, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 10 Oct 2019.
    9. Zhang, Cheng & Nie, Kunxi & Zhu, Yueji, 2024. "Participation in land rental and labor markets and agricultural economic performance of banana farmers in China," Land Use Policy, Elsevier, vol. 146(C).
    10. Martin Paul Jr. Tabe-Ojong & Thomas Heckelei & Kathy Baylis, 2021. "Aspiration Formation and Ecological Shocks in Rural Kenya," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(4), pages 833-860, August.
    11. Tabe-Ojong, Jr., Martin Paul & Godana, Guyo, 2022. "Are Agro-clusters Pro-Poor? Evidence from Ethiopia," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322432, Agricultural and Applied Economics Association.
    12. Ugo Pica-Ciamarra & Luca Tasciotti & Joachim Otte & Alberto Zezza, 2015. "Livestock in the Household Economy: Cross-Country Evidence from Microeconomic Data," Development Policy Review, Overseas Development Institute, vol. 33(1), pages 61-81, January.
    13. Tabe-Ojong, Martin Paul Jr & Heckelei, Thomas & Rasch, Sebastian, 2022. "Aspirations and Investments in Livestock: Evidence of an aspiration failure in Kenya," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322435, Agricultural and Applied Economics Association.
    14. Jeetendra Prakash Aryal & Dil Bahadur Rahut & Sofina Maharjan & Olaf Erenstein, 2018. "Factors affecting the adoption of multiple climate‐smart agricultural practices in the Indo‐Gangetic Plains of India," Natural Resources Forum, Blackwell Publishing, vol. 42(3), pages 141-158, August.
    15. Saha, Subrata & Alam, Mohammad J. & Al Abbasi, Al Amin & Begum, Ismat Ara, 2024. "Effect of Rural Land Mortgaged Out on Rural Transformation in Bangladesh," 2024 Annual Meeting, July 28-30, New Orleans, LA 343843, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    livestock rental market; land rental market; share contracts; asset poverty; caste; Nepal;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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

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