Land Market Integration, Structural Change, and Smallholder Farming in Zambia

Andrew M. Larson

No 170488, 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota from Agricultural and Applied Economics Association

Abstract: The bifurcation of Zambia's agricultural land markets prevents smallholder farmers from participating in modern food marketing channels. High transaction costs in terms of time and financial resources make conversion of customary land into commercial land title prohibitively expensive for smallholder farmers. The simulated conversion of land title, without changing ownership, instigates a reallocation of capital and labor resources in the modeled economy that benefits smallholders in their roles as producers and household owners of factors of production. With the increase in commercial land area, labor becomes scarce and farm production becomes more capital intensive, thus increasing labor productivity and smallholder household income. This analysis highlights the importance of integrating land markets and giving smallholders an effective increase in the range of their resource allocation decisions.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Farm Management; Land Economics/Use; Marketing; Political Economy (search for similar items in EconPapers)
Pages: 43
Date: 2014-05
New Economics Papers: this item is included in nep-afr and nep-agr
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea14:170488

DOI: 10.22004/ag.econ.170488

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