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Market and non-market transfers of land in Ethiopia - implications for efficiency, equity, and non-farm development

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  • Deininger, Klaus
  • Songqing Jin
  • Adenew, Berhanu
  • Gebre-Selassie, Samuel
  • Demeke, Mulat

Abstract

The authors use data from Ethiopia to empirically assess determinants of participation in land rental markets, compare these to those of administrative land reallocation, and make inferences on the likely impact of households'expectations regarding future redistribution. Results indicate that rental markets outperform administrative reallocation in terms of efficiency and poverty. Households who have part-time jobs in the off-farm sector are significantly more likely to expect land to be taken away from them through administrative means. Eliminating the scope for administrative land reallocation may thus be a precondition for more vigorous development of the off-farm sector.

Suggested Citation

  • Deininger, Klaus & Songqing Jin & Adenew, Berhanu & Gebre-Selassie, Samuel & Demeke, Mulat, 2003. "Market and non-market transfers of land in Ethiopia - implications for efficiency, equity, and non-farm development," Policy Research Working Paper Series 2992, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2992
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    3. Gottlieb, Charles & Grobovšek, Jan, 2019. "Communal land and agricultural productivity," Journal of Development Economics, Elsevier, vol. 138(C), pages 135-152.
    4. Chamberlin, Jordan & Schmidt, Emily, 2012. "Ethiopian Agriculture: A dynamic geographic perspective," IFPRI book chapters, in: Dorosh, Paul A. & Rashid, Shahidur (ed.), Food and agriculture in Ethiopia: Progress and policy challenges, chapter 2, International Food Policy Research Institute (IFPRI).
    5. Hans P. Binswanger-Mkhize & Camille Bourguignon & Rogier van den Brink, 2009. "Agricultural Land Redistribution : Toward Greater Consensus," World Bank Publications - Books, The World Bank Group, number 2653.
    6. Xingguang Li & Xuexi Huo, 2022. "Impact of Farmland Rental Contract Disputes on Farmland Rental Market Participation," Land, MDPI, vol. 11(12), pages 1-16, November.
    7. Qian, Wenrong & Li, Baozhi & Zheng, Liyi, 2015. "The Impact of Non-Agricultural Employment on Farmland Transfer and Investment in Agricultural Assets: Evidence from China," 2015 Conference, August 9-14, 2015, Milan, Italy 212703, International Association of Agricultural Economists.
    8. Chamberlin, Jordan & Ricker-Gilbert, Jacob, "undated". "Rural land rental markets in Southern Africa: trends, drivers, and impacts on household welfare in Malawi and Zambia," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170434, Agricultural and Applied Economics Association.
    9. Abebaw Andarge Gedefaw & Clement Atzberger & Walter Seher & Sayeh Kassaw Agegnehu & Reinfried Mansberger, 2020. "Effects of Land Certification for Rural Farm Households in Ethiopia: Evidence from Gozamin District, Ethiopia," Land, MDPI, vol. 9(11), pages 1-23, October.
    10. Kosec, Katrina & Ghebru, Hosaena & Holtemeyer, Brian & Mueller, Valerie & Schmidt, Emily, 2016. "The effect of land inheritance on youth employment and migration decisions: Evidence from rural Ethiopia," IFPRI discussion papers 1594, International Food Policy Research Institute (IFPRI).
    11. 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.
    12. Samuel Godadaw Ayinaddis, 2023. "Socio-economic factors affecting women’s entrepreneurial performance in MSEs in Bahir Dar City, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-21, December.
    13. Mintewab Bezabih, 2009. "Heterogeneous Risk Preferences, Discount Rates and Land Contract Choice in Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 402-418, June.
    14. Brooks, Karen & Zorya, Sergiy & Gautam, Amy & Goyal, Aparajita, 2013. "Agriculture as a sector of opportunity for young people in Africa," Policy Research Working Paper Series 6473, The World Bank.
    15. World Bank, 2007. "Determinants of the Adoption of Sustainable Land Management Practices and Their Impacts in the Ethiopian Highlands," World Bank Publications - Reports 7938, The World Bank Group.
    16. Li, Xingguang & Huo, Xuexi, 2021. "Impacts of land market policies on formal credit accessibility and agricultural net income: Evidence from China's apple growers," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    17. Xiao, Wei & Zhao, Guochang, 2018. "Agricultural Land and Rural-Urban Migration in China: A New Pattern," RIEI Working Papers 2018-09, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    18. Shenjie Yang & Lanjiao Wen, 2023. "Regional Heterogeneity in China’s Rural Collectively Owned Commercialized Land Market: An Empirical Analysis from 2015–2020," Land, MDPI, vol. 12(2), pages 1-15, February.
    19. Wibke Crewett & Benedikt Korf, 2008. "Ethiopia: Reforming Land Tenure," Review of African Political Economy, Taylor & Francis Journals, vol. 35(116), pages 203-220, June.

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