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Does Land Tenure Systems Affect Sustainable Agricultural Development?

Nida Akram (), Muhammad Waqar Akram, Hongshu Wang () and Ayesha Mehmood ()
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Nida Akram: College of Economics and Management, Northeast Forestry University, Harbin 150040, China
Muhammad Waqar Akram: College of Economics and Management, Northeast Forestry University, Harbin 150040, China
Hongshu Wang: College of Economics and Management, Northeast Forestry University, Harbin 150040, China
Ayesha Mehmood: Institute of knowledge and leadership, University of Management and Technology, Lahore, Punjab 54000, Pakistan

Sustainability, 2019, vol. 11, issue 14, 1-15

Abstract: The current study aims to investigate the agricultural investment differences among three kinds of land lease agreements and their effect on farmers’ decisions regarding sustainable growth in terms of soil conservation and wheat productivity, using cross-sectional data from rural households in Punjab, Pakistan. The “multivariate Tobit model” was used for the empirical analysis because it considers the possible substitution of investment choices and the tenancy status’ endogeneity. Compared to agricultural lands on lease contracts, landowners involved in agribusiness are more likely to invest in measures to improve soil and increase productivity. Moreover, the present study has also identified that the yield per hectare is much higher for landowners than sharecroppers, and thus, the Marshall’s assumption of low efficiency of tenants under sharecroppers is supported.

Keywords: land tenure; soil conservation; Investment decision; farm productivity; land use sustainability; agricultural development (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2019
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