Enhancing land productivity through a better organization of irrigation cooperatives: evidence from Tigray, Ethiopia

Tafesse W. Gezahegn (), Steven Passel, Tekeste Berhanu, Marijke D’Haese and Miet Maertens
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Tafesse W. Gezahegn: Research Center for Agri-Food Economics and Development (CREDA-UPC-IRTA)
Steven Passel: University of Antwerp
Tekeste Berhanu: Mekelle University
Marijke D’Haese: Ghent University
Miet Maertens: KU Leuven

Empirical Economics, 2025, vol. 68, issue 6, No 7, 2705-2727

Abstract: Abstract Given the diverse organizational design of irrigation cooperatives (ICs) in Tigray, this study examines whether such heterogeneity matters for land productivity. While various studies assess the performance of ICs, few explicitly account for their organizational heterogeneity. Using Lewbel’s (2012) heteroskedasticity-based identification strategy to tackle endogeneity, we analyze the impact of IC organizational design on smallholders’ plot-level land productivity. Findings indicate that members of bottom-up ICs with water use regulations achieve higher productivity compared to members of top-down ICs without regulations. These findings have important implications for IC initiation and the design of regulations to enhance water resource management.

Keywords: Land productivity; Irrigation cooperatives; Organizational design; Lewbel; Tigray (search for similar items in EconPapers)
JEL-codes: J54 O13 Q13 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s00181-025-02721-4

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