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Please talk about :Relationship among land tenure, labor input-(Answered)

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Please talk about :Relationship among land tenure, labor input and effort, investment in land, agricultural output, and international migration.? Be sure to discuss the mechanisms through which these occur. (And I need the answer relate with my ppt)
Land Tenure and Agricultural

 

Productivity

 

Theory and Evidence

 


 

Introduction

 

? One of the most important institutions affecting

 

development in low income countries is land

 

tenure system

 

? Land tenure: Mechanisms through which land

 

is acquired, used, inherited etc.

 

? Economists argue that nature of land tenure

 

system affect productivity of agriculture, hence

 

development in low income countries

 

? Will look at theory and some empirical evidence

 


 

Effects of land Tenure

 

? Effects of land tenure on:

 

? farmer efforts

 

? Farm size

 

? Investment in land improvements

 

? Acquisition of other inputs

 

? Titling and credit availability

 

? Tenure security and adoption of new technologies

 


 

? We will look at theory and empirical evidence

 


 

WORLDWIDE LAND DISTRIBUTION AND LAND

 

CONTRACTS

 


 

? The distribution of land ownership varies by regions. (Recall that the

 

higher the Gini coefficient, the higher the inequality of land ownership.)

 

? Latin America tends to have the highest Ginis, Asia has the lowest

 

? What factors explain the variation across countries? (technology)

 

? Does inequality affect the efficiency of farming?

 

? Five important forms of land ownership and tenancy contracts are:

 

? Farmer ownership

 

? Communal ownership

 

? Fixed land rental

 

? Sharecropping

 

? Hired labor contracts

 

? Next slide shows the distribution of farm size and ownership and contract

 

status worldwide.

 


 

WORLDWIDE LAND DISTRIBUTION AND LAND

 

CONTRACTS

 


 

Table 12.2. Forms of Land Ownership across the World.

 


 

PROPERTIES OF LAND CONTRACTS

 


 

? Using privately owned farms as a

 

benchmark we can discuss the economic

 

effects of land contracts on the following

 

dimensions:

 

1.

 

2.

 

3.

 

4.

 

5.

 


 

Effort

 

Investment

 

Risk

 

Farm size

 

Gender Dimension of land tenure

 


 

PROPERTIES OF LAND CONTRACTS

 


 

Farmer Ownership

 


 

? Owner-farmer receives full residual returns (profits) of

 

labor and investment, so MC = MR and labor effort and

 

investment is optimal

 

? Owner-farmer bears all risk - natural and economic (price

 

volatility). Facing lower technology, lower crop diversity,

 

and undeveloped insurance markets, poor farmers tend

 

to be risk averse avoiding new opportunities that might

 

enhance productivity.

 

? The amount of land a single owner-farmer can farm is

 

limited depending on infrastructure, technology and

 

crops. This may limit exploitation of economies of scale.

 


 

PROPERTIES OF LAND CONTRACTS

 


 

Communal Ownership

 


 

? Communal ownership is land ownership by

 

village or clan. Still quite common in Africa

 

? Market provides optimal short term incentives for

 

labor input, but long term investment will be

 

suboptimal since land could be transferred to

 

another individual at any point.

 

? While communal ownership provides insurance

 

within community (risk is diversified),

 

disincentives to new innovations and technology

 

means that it is a serious impediment for growth

 

and development.

 


 

PROPERTIES OF LAND CONTRACTS

 


 

Fixed Land Rental

 


 

? Like communal ownership, tenants face similar efficient

 

short run market incentives for labor input. Common in

 

Latin America

 

? Long term investment is discouraged, though investment

 

varies positively with length of rental contract.

 

? Landlord receives fixed rent, all risks are borne by the

 

tenant. Like farmer-owned schemes, farms are small.

 


 

PROPERTIES OF LAND CONTRACTS

 


 

Sharecropping

 


 

? In a sharecropping contract the tenant gives the landlord a

 

portion of the crop output.

 

? The tenant faces reduced risk in this type of contract as the

 

landlord shares some of that risk.

 

? Because the tenant does not enjoy all the fruits of his labor

 

he will typically put less labor input under this type of

 

contract.

 


 

PROPERTIES OF LAND CONTRACTS

 


 

Labor Contracts

 


 

? Many farmers are under labor contracts working for a

 

fixed wage. The worker faces no output risk and has no

 

incentives for increased labor effort, unless supervised.

 

? Provides advantages for large operations (e.g.,

 

plantations). Labor can be specialized and efficiently

 

deployed.

 

? In Latin America, the Spanish colonizers created the

 

encomienda system, which forced local Indians to work

 

for Spanish landlords. Legacy effects are a problem.

 


 

PROPERTIES OF LAND CONTRACTS

 

Table 12.3. The Properties of Land Contracts.

 


 

Institutions, Geography and Resource

 

Scarcity

 

? Discussions so far illustrate the role of geography and

 

relative scarcity of resources

 

? Where land is scarce relative to population and the need

 

for sedentary living, land was privatized leading ownership

 

rights

 

? Where there abundance of land relative to population no

 

need for fixed settlements, land was communally held

 


 

? Also illustrates the link between ?culture? and

 

institutions: where society cared about the collective

 

well being, resources (including land) were collectively

 

held; where the objective is individual household

 

utility maximization, resources were privately held.

 


 

 

Paper#9209468 | Written in 27-Jul-2016

Price : $19
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