Time-Related Characteristics of Tenancy Contracts and Investment in Soil Conservation Practices

Awudu Abdulai and Renan Goetz

Environmental & Resource Economics, 2014, vol. 59, issue 1, 87-109

Abstract: We present a dynamic model that shows how different types of land tenancy contracts and their time-related characteristics influence farmers’ decisions to invest in soil improvement and productive inputs. Using recent household and plot-level data from the Brong-Ahafo Region in Ghana, we analyze the impact of land tenancy arrangements, contract duration, as well as the number of times the contract has been renewed in the past on the intensity of investment in soil conservation measures such as ditches and farmyard manure and productive inputs like chemical fertilizer. The empirical findings generally confirm the predictions of the theoretical model and reveal that the intensity of investments on different plots cultivated by a given farmer varies significantly with the type of tenancy arrangement on the plot as well as the time-related characteristics of the contract. Copyright Springer Science+Business Media Dordrecht 2014

Keywords: Land rights; Contract duration; Investment; Soil capital; Hold-up problem; Q15; O13 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10640-013-9719-y (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:enreec:v:59:y:2014:i:1:p:87-109

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1007/s10640-013-9719-y

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().