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Informal Land Markets and Efficiency in Rice Production in West Amhara Region: the Case of Fogera District


In this paper we analyze the factors that affect choices of farm households for sharecropping tenancy and the differences between own-cultivated plots and sharecropped ones in regards to rice yield and inputs intensities. The analysis is based on the responses of randomly sampled 120 farm households in Fogera district of West Amhara Region whereby 398 plots cultivated by the sample households were considered. A multinomial logistic regression and a log-linear multiple regression models were employed. The results show that the decision to share-in land is positively related to labor-land ratio whereas it is negatively related to age of household head, sex of household heads (taking observations from male-headed households as a base) and the perceived value of farm plots. The decision to share-out land is positively related to sex of household head and access to credit whereas it is negatively related to oxen-land ratio, absence of disabled adult household member and the perceived value of farm plots. Moreover, our results show that own-cultivated plots do not significantly differ from sharecropped plots in terms of rice yield and intensities of major farm inputs in the area (i.e. labor, draft power, and seed). The latter result rejects the Marshallian arguments against sharecropping tenancy which states that sharecropping reduces production efficiency since it doesn't motivate tenants to put maximum efforts in the production process while landlords face prohibitively high monitoring costs to reduce inefficiency

Corporate Author: 
Getnet Alemun & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Ethiopian Economic Association (EEA)
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Geographic Descriptors: 
Ethiopia, West Amhara Region
Cataloge Date: 
Broad Subject heading: 
Agricultural - Production
Call Number: 
330.963 PRO 2010
Serial Key Title: 
Proceedings of the Seventh International Conference on the Ethiopian Economy
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Content type: 
Publication date: 
2013-05-27 23:10:00
Forum or Discussion date: 
2013-02-27 15:09:21
Place of publication: 
Addis Ababa, Ethiopia
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