Land Tenure, Investment Incentives, and the Choice of Techniques

The choice of cultivation techniques is a key determinant of agricultural productivity and has important consequences for income growth and poverty reduction in developing countries. Household data from Nicaragua are used to show that the choice of cultivation technique depends on farmers' tenure status even when techniques are observable and contractible. In particular, tree crops are less likely to be grown on rented than on owner-cultivated plots. Further evidence indicates that the result follows from landlords’ inability or unwillingness to commit to long-term tenancy contracts rather than from agency costs due to risk aversion or limited liability.

• Publication year

  2007

• Venue

  The World Bank Economic Review

• Publication date

  2007-09-01

• Fields of study

  Agricultural and Food Sciences, Economics

• Identifiers
  DOI 10.1093/WBER/LHM005
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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