Land Rental Market Reforms: Can They Increase Outmigration From Agriculture? Evidence From a Quantitative Model

Arnaud Daymard ()

No 2020-06, THEMA Working Papers from THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise

Abstract: Recent econometric work has found that policies improving the functioning of the land rental market have increased outmigration from agriculture in the developing world. I investigate this claim using a two-sector model of structural transformation that takes into account the well-known inverse relationship between farm size and farm productivity. Theoretically, outmigration from agriculture depends on how flexible agricultural prices are, while rigid agricultural prices lead to the reverse phenomenon of immigration in agriculture. Practically, the model predicts that for most countries, land rental market reforms cause little labor movement between sectors. In spite of this, these reforms are found to increase substantially the production efficiency and welfare of farmers.

Keywords: structural transformation; agriculture; land rental markets; land reform (search for similar items in EconPapers)
JEL-codes: F41 O11 O13 O14 O41 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-agr and nep-eff
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Journal Article: Land rental market reforms: Can they increase outmigration from agriculture? Evidence from a quantitative model (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ema:worpap:2020-06

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