Efficiency and Equity Impacts of Rural Land Rental Restrictions : Evidence from India

Efficiency and Equity Impacts of Rural Land Rental Restrictions : Evidence from India

Show other versions (1)

Recognition of the potentially deleterious implications of inequality in opportunity originating in a skewed asset distribution has spawned considerable interest in land reforms. However, little attention has been devoted to fact that, in the longer term, the measures used to implement land reforms could negatively affect productivity. Use of state level data on rental restrictions, together with a nationally representative survey from India, suggests that, contrary to original intentions, rental restrictions negatively affect productivity and equity. The restrictions reduce the scope for efficiency-enhancing rental transactions that benefit poor producers. Simulations suggest that, by doubling the number of producers with access to land through rental, from about 15 million currently, liberalization of rental markets could have far-reaching impacts.

Saved in:
Bibliographic Details
Main Authors: Deininger, Klaus, Jin, Songqing, Nagarajan, Hari K.
Format: Policy Research Working Paper biblioteca
Language:English
Published: World Bank, Washington, DC 2007-08
Subjects:ACCESS TO INFORMATION, AGENTS, AGRARIAN REFORM, AGRICULTURAL DEVELOPMENT, AGRICULTURAL ECONOMICS, AGRICULTURAL LAND, AGRICULTURAL PRODUCTION, AGRICULTURE, ALTERNATIVE APPROACH, CLIMATE, ECONOMIC DEVELOPMENT, ECONOMICS, ELASTICITY, EQUALITY, EVICTION, EVICTIONS, FARMERS, FEMALE, FEMALE HEADED HOUSEHOLDS, GENDER, HOUSEHOLDS, HOUSING, INTERVENTION, INTERVENTIONS, IRRIGATION, LABOR MARKET, LABOR MARKETS, LAND REFORM, LAND RENTAL, LAND SALES, LAND TENURE, LAND USE, LAND VALUE, LANDLORDS, LEASING, LIVESTOCK, MARGINAL PRODUCTIVITY, MOBILITY, POINTS, PRODUCTION FUNCTIONS, PROGRAMS, PROPERTY RIGHTS, RENTAL HOUSING, RENTAL PROPERTY, RENTING, RENTS, RURAL AREAS, RURAL DEVELOPMENT, RURAL ECONOMY, TENANCY, TENANTS, TRANSACTION COSTS, URBAN DEVELOPMENT, URBAN LAND, URBAN LAND MARKETS, VILLAGE LEVEL, VILLAGES,
Online Access:http://documents.worldbank.org/curated/en/2007/08/8113927/efficiency-equity-impacts-rural-land-rental-restrictions-evidence-india
http://hdl.handle.net/10986/7275
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Recognition of the potentially deleterious implications of inequality in opportunity originating in a skewed asset distribution has spawned considerable interest in land reforms. However, little attention has been devoted to fact that, in the longer term, the measures used to implement land reforms could negatively affect productivity. Use of state level data on rental restrictions, together with a nationally representative survey from India, suggests that, contrary to original intentions, rental restrictions negatively affect productivity and equity. The restrictions reduce the scope for efficiency-enhancing rental transactions that benefit poor producers. Simulations suggest that, by doubling the number of producers with access to land through rental, from about 15 million currently, liberalization of rental markets could have far-reaching impacts.

Similar Items