Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/7576.html
   My bibliography  Save this paper

Large farm establishment, smallholder productivity, labor market participation, and resilience : evidence from Ethiopia

Author

Listed:
  • Ali,Daniel Ayalew
  • Deininger,Klaus W.
  • Harris,Charles Anthony Philip
  • Ali,Daniel Ayalew
  • Deininger,Klaus W.
  • Harris,Charles Anthony Philip
Abstract
Although the nature and magnitude of (positive or negative) spillovers from large farm establishment are hotly debated, most evidence relies on case studies. Ethiopia's large farms census together with 11 years of nation-wide smallholder surveys allows examination and quantification of spillovers using intertemporal changes in smallholders'proximity and exposure to large farms, generally or growing the same crop, for identification. The results suggest positive spillovers on fertilizer and improved seed use, yields, and risk coping, but not local job creation, for some crops, most notably maize. Most spillovers are crop-specific and limited to large farms'immediate vicinity. The implications for policy and research are drawn out.

Suggested Citation

  • Ali,Daniel Ayalew & Deininger,Klaus W. & Harris,Charles Anthony Philip & Ali,Daniel Ayalew & Deininger,Klaus W. & Harris,Charles Anthony Philip, 2016. "Large farm establishment, smallholder productivity, labor market participation, and resilience : evidence from Ethiopia," Policy Research Working Paper Series 7576, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7576
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/650951468187134876/pdf/WPS7576.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.
    2. Nolte, Kerstin & Voget-Kleschin, Lieske, 2014. "Consultation in Large-Scale Land Acquisitions: An Evaluation of Three Cases in Mali," World Development, Elsevier, vol. 64(C), pages 654-668.
    3. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," The World Bank Economic Review, World Bank, vol. 29(2), pages 207-233.
    4. Dercon, Stefan, 2004. "Growth and shocks: evidence from rural Ethiopia," Journal of Development Economics, Elsevier, vol. 74(2), pages 309-329, August.
    5. Collier Paul & Venables Anthony J., 2012. "Land Deals in Africa: Pioneers and Speculators," Journal of Globalization and Development, De Gruyter, vol. 3(1), pages 1-22, June.
    6. Enrico Moretti, 2004. "Workers' Education, Spillovers, and Productivity: Evidence from Plant-Level Production Functions," American Economic Review, American Economic Association, vol. 94(3), pages 656-690, June.
    7. Pramila Krishnan & Manasa Patnam, 2014. "Neighbors and Extension Agents in Ethiopia: Who Matters More for Technology Adoption?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 308-327.
    8. Schoneveld, George Christoffel, 2014. "The geographic and sectoral patterns of large-scale farmland investments in sub-Saharan Africa," Food Policy, Elsevier, vol. 48(C), pages 34-50.
    9. Ruth Hall, 2011. "Land grabbing in Southern Africa: the many faces of the investor rush," Review of African Political Economy, Taylor & Francis Journals, vol. 38(128), pages 193-214, June.
    10. Christoph Saenger & Matin Qaim & Maximo Torero & Angelino Viceisza, 2013. "Contract farming and smallholder incentives to produce high quality: experimental evidence from the Vietnamese dairy sector," Agricultural Economics, International Association of Agricultural Economists, vol. 44(3), pages 297-308, May.
    11. Ali, Daniel Ayalew & Deininger, Klaus & Harris, Anthony, 2017. "Using National Statistics to Increase Transparency of Large Land Acquisition: Evidence from Ethiopia," World Development, Elsevier, vol. 93(C), pages 62-74.
    12. Kotsadam, Andreas & Tolonen, Anja, 2016. "African Mining, Gender, and Local Employment," World Development, Elsevier, vol. 83(C), pages 325-339.
    13. Henderson, J. Vernon, 2003. "Marshall's scale economies," Journal of Urban Economics, Elsevier, vol. 53(1), pages 1-28, January.
    14. Söderholm, Patrik & Svahn, Nanna, 2015. "Mining, regional development and benefit-sharing in developed countries," Resources Policy, Elsevier, vol. 45(C), pages 78-91.
    15. Hueth, Brent & Ligon, Ethan & Dimitri, Carolyn, 2007. "AJAE Appendix: Agricultural Contracts: Data and Research Needs," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 89(5), pages 1-7, December.
    16. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
    17. Lorenzo Cotula & Carlos Oya & Emmanuel A. Codjoe & Abdurehman Eid & Mark Kakraba-Ampeh & James Keeley & Admasu Lokaley Kidewa & Melissa Makwarimba & Wondwosen Michago Seide & William Ole Nasha & Richa, 2014. "Testing Claims about Large Land Deals in Africa: Findings from a Multi-Country Study," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 903-925, July.
    18. Allen, Douglas W & Lueck, Dean, 1998. "The Nature of the Farm," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 343-386, October.
    19. Miet Maertens & Liesbeth Colen & Johan F. M. Swinnen, 2011. "Globalisation and poverty in Senegal: a worst case scenario?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 38(1), pages 31-54, March.
    20. Mathieu Boche & Ward Anseeuw & T. Kapuya & S. Aubin & I. Sunga, 2012. "Global Land Deals," Post-Print hal-03072578, HAL.
    21. Janet Currie & Lucas Davis & Michael Greenstone & Reed Walker, 2015. "Environmental Health Risks and Housing Values: Evidence from 1,600 Toxic Plant Openings and Closings," American Economic Review, American Economic Association, vol. 105(2), pages 678-709, February.
    22. Klaus Deininger & Derek Byerlee & Jonathan Lindsay & Andrew Norton & Harris Selod & Mercedes Stickler, 2011. "Rising Global Interest in Farmland : Can it Yield Sustainable and Equitable Benefits?," World Bank Publications - Books, The World Bank Group, number 2263.
    23. Jayne, T.S. & Chamberlin, Jordan & Headey, Derek D., 2014. "Land pressures, the evolution of farming systems, and development strategies in Africa: A synthesis," Food Policy, Elsevier, vol. 48(C), pages 1-17.
    24. Brent Hueth & Ethan Ligon & Carolyn Dimitri, 2007. "Agricultural Contracts: Data and Research Needs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1276-1281.
    25. German, Laura & Schoneveld, George & Mwangi, Esther, 2013. "Contemporary Processes of Large-Scale Land Acquisition in Sub-Saharan Africa: Legal Deficiency or Elite Capture of the Rule of Law?," World Development, Elsevier, vol. 48(C), pages 1-18.
    26. Collier, Paul & Dercon, Stefan, 2014. "African Agriculture in 50Years: Smallholders in a Rapidly Changing World?," World Development, Elsevier, vol. 63(C), pages 92-101.
    27. M.O. Adewumi & Ayodele Jimoh & O.A. Omotesho, 2013. "Implications of the Presence of Large Scale Commercial Farmers on Small Scale Farming in Nigeria. The Case of Zimbabwean Farmers in Kwara State," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(4), pages 67-73, December.
    28. Bart Minten & Lalaina Randrianarison & Johan Swinnen, 2007. "Spillovers from high‐value agriculture for exports on land use in developing countries: evidence from Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 265-275, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deininger, Klaus & Xia, Fang, 2016. "Quantifying Spillover Effects from Large Land-based Investment: The Case of Mozambique," World Development, Elsevier, vol. 87(C), pages 227-241.
    2. Joglekar, Alison B. & Pardey, Philip G., 2016. "Proximity to African Agricultural Markets, Down to the Last Kilometer," Briefs 253951, HarvestChoice.
    3. De Juan, Alexander & Hoffmann, Lisa & Lay, Jann, 2022. "Large-scale agricultural investments, employment opportunities and communal conflict," OSF Preprints j5vmh, Center for Open Science.
    4. Khadjavi, Menusch & Sipangule, Kacana & Thiele, Rainer, 2016. "Social capital and large-scale agricultural investments: An experimental investigation in Zambia," Kiel Working Papers 2056, Kiel Institute for the World Economy (IfW Kiel).
    5. Menusch Khadjavi & Kacana Sipangule & Rainer Thiele, 2021. "Social Capital and Large-Scale Agricultural Investments: An Experimental Investigation [Implications of the presence of large scale commercial farmers on small scale farming in Nigeria: the case of," The Economic Journal, Royal Economic Society, vol. 131(633), pages 420-449.
    6. Liverpool-Tasie, Saweda & Nuhu, Ahmed Salim & Awokuse, Titus O. & Jayne, Thomas S. & Muyanga, Milu & Aromolaran, Adebayo & Adelaja, Adesoji, 2020. "Spillover effects of Medium-Scale Farms on Smallholder Behavior and Welfare: Evidence from Nigeria," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304606, Agricultural and Applied Economics Association.
    7. Lay, Jann & Nolte, Kerstin & Sipangule, Kacana, 2018. "Large-Scale Farms and Smallholders: Evidence from Zambia," GIGA Working Papers 310, GIGA German Institute of Global and Area Studies.
    8. Wang, Qian & Qiu, Junjie & Yu, Jin, 2019. "Impact of farmland characteristics on grain costs and benefits in the North China Plain," Land Use Policy, Elsevier, vol. 80(C), pages 142-149.
    9. Oladehinde, Gbenga John & Olayiwola, Lasun Mykail & Popoola, Kehinde Olayinka, 2024. "Security of land tenure: A comparative analysis among sub-ethnic groups in rural communities of Oyo State, Nigeria," Land Use Policy, Elsevier, vol. 138(C).
    10. Anti, Sebastian, 2021. "Land grabs and labor in Cambodia," Journal of Development Economics, Elsevier, vol. 149(C).
    11. Makunike, Rudo E. & Kirsten, Johann F., 2018. "Engagement dynamics in large-scale investments in farmland and implications for smallholder farmers – evidence from Zambia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(2), June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Deininger, Klaus & Xia, Fang, 2016. "Quantifying Spillover Effects from Large Land-based Investment: The Case of Mozambique," World Development, Elsevier, vol. 87(C), pages 227-241.
    2. Deininger,Klaus W. & Xia,Fang & Mate,Aurelio & Payongayong,Ellen & Deininger,Klaus W. & Xia,Fang & Mate,Aurelio & Payongayong,Ellen, 2015. "Quantifying spillover effects from large farm establishments : the case of Mozambique," Policy Research Working Paper Series 7466, The World Bank.
    3. Deininger, Klaus & Xia, Fang, 2018. "Assessing the long-term performance of large-scale land transfers: Challenges and opportunities in Malawi’s estate sector," World Development, Elsevier, vol. 104(C), pages 281-296.
    4. Deininger, Klaus W. & Xia, Fang, 2017. "Assessing Impacts of Large Scale Land Transfers: Challenges and Opportunities in Malawi’s Estate Sector," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258112, Agricultural and Applied Economics Association.
    5. Ali, Daniel Ayalew & Deininger, Klaus & Harris, Anthony, 2017. "Using National Statistics to Increase Transparency of Large Land Acquisition: Evidence from Ethiopia," World Development, Elsevier, vol. 93(C), pages 62-74.
    6. Jana Brandt & Jonas Possmann, 2017. "Großflächige Agrarinvestitionen in Entwicklungsländern: Ausmaß, Akteure und Land Governance," MAGKS Papers on Economics 201714, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    7. Michael Brüntrup & Fabian Schwarz & Thomas Absmayr & Jonas Dylla & Franziska Eckhard & Kerstin Remke & Konrad Sternisko, 2018. "Nucleus-outgrower schemes as an alternative to traditional smallholder agriculture in Tanzania – strengths, weaknesses and policy requirements," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 807-826, August.
    8. Herrmann, Raoul T., 2017. "Large-Scale Agricultural Investments and Smallholder Welfare: A Comparison of Wage Labor and Outgrower Channels in Tanzania," World Development, Elsevier, vol. 90(C), pages 294-310.
    9. Giovannetti, Giorgia & Ticci, Elisa, 2016. "Determinants of biofuel-oriented land acquisitions in Sub-Saharan Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 678-687.
    10. 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.
    11. Nolte, Kerstin & Ostermeier, Martin, 2017. "Labour Market Effects of Large-Scale Agricultural Investment: Conceptual Considerations and Estimated Employment Effects," World Development, Elsevier, vol. 98(C), pages 430-446.
    12. 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).
    13. Maria Cipollina & Nadia Cuffaro & Giovanna D’Agostino, 2018. "Land Inequality and Economic Growth: A Meta-Analysis," Sustainability, MDPI, vol. 10(12), pages 1-20, December.
    14. Sitko, Nicholas J. & Chamberlin, Jordan & Mulenga, Brian, 2015. "Unpacking the Growth of Medium-scale Farms Zambia: What Are the Implications for the Future of Smallholder Agriculture?," Food Security Collaborative Working Papers 212901, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    15. Chamberlin, Jordan & Jayne, T.S., 2020. "Does farm structure affect rural household incomes? Evidence from Tanzania," Food Policy, Elsevier, vol. 90(C).
    16. Jann Lay & Kerstin Nolte, 2018. "Determinants of foreign land acquisitions in low- and middle-income countries," Journal of Economic Geography, Oxford University Press, vol. 18(1), pages 59-86.
    17. Rincón Barajas, Jorge A. & Kubitza, Christoph & Lay, Jann, 2024. "Large-scale acquisitions of communal land in the Global South: Assessing the risks and formulating policy recommendations," Land Use Policy, Elsevier, vol. 139(C).
    18. Kleemann, Linda & Thiele, Rainer, 2015. "Rural welfare implications of large-scale land acquisitions in Africa: A theoretical framework," Economic Modelling, Elsevier, vol. 51(C), pages 269-279.
    19. Giger, Markus & Mutea, Emily & Kiteme, Boniface & Eckert, Sandra & Anseeuw, Ward & Zaehringer, Julie G., 2020. "Large agricultural investments in Kenya’s Nanyuki Area: Inventory and analysis of business models," Land Use Policy, Elsevier, vol. 99(C).
    20. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.

    More about this item

    Keywords

    Food Security; Inequality; Agricultural Economics; Rural Labor Markets; Labor Markets; Climate Change and Agriculture; Crops and Crop Management Systems;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:7576. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.