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Communal Land and Agricultural Productivity

Author

Listed:
  • Charles Gottlieb

    (University of Cambridge
    Centre for Macroeconomics (CFM))

  • Jan Grobovšek

    (School of Economics University of Edinburgh)

Abstract
Communal land tenure regimes are perceived as an obstacle to agricultural productivity in Sub-Saharan Africa. Our general equilibrium selection model suggests that such land tenure arrangements can indeed lower nominal productivity in agriculture relative to non-agriculture, by some 25%. Real agricultural productivity, employment and GDP, however, are only marginally affected. Highly distortionary policies need not have substantial bite when individuals strategically respond and cross-sectoral terms of trade adjust strongly. Our model, calibrated to Ethiopia, predicts that at given prices 62% of farmers would leave farming if tenure were secured, yet only 9% actually switch sectors after factoring in price adjustments.

Suggested Citation

  • Charles Gottlieb & Jan Grobovšek, 2015. "Communal Land and Agricultural Productivity," Discussion Papers 1513, Centre for Macroeconomics (CFM).
    • Handle: RePEc:cfm:wpaper:1513
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    More about this item

    Keywords

    Agricultural Productivity; Growth and Development; Misallocation; Land;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • 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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