A new scramble for land or an unprecedented opportunity for the rural poor? Distributional consequences of increasing land rents in developing countries

Anna Kirstine Hvid and Geraldine Adrienne Henningsen

MPRA Paper from University Library of Munich, Germany

Abstract: Price induced increases in land rents trigger an increasing incentive for rent-seeking behavior. To analyse distributional and welfare effects of increasing land rents in developing countries, we develop a game theoretic model where a large and heterogeneous group of farmers competes with a small and wealthy elite. The results indicate that only relatively small rent increases benefit the farmers more than the elite. Moreover, political institutions have an ambiguous effect on farmers’ rent share, and may even reduce overall welfare, because they induce wasteful expenditure on rent-seeking.

Keywords: rent-seeking; land rents; agricultural prices; biofuels; natural resources (search for similar items in EconPapers)
JEL-codes: D72 D74 N50 O13 (search for similar items in EconPapers)
Date: 2014-01-13
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:52919

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