Market Imperfections and Land Productivity in the Ethiopian Highlands
نویسندگان
چکیده
EPTD Discussion Papers contain preliminary material and research results, and are circulated prior to a full peer review in order to stimulate discussion and critical comment. It is expected that most Discussion Papers will eventually be published in some other form, and t hat their content may also be revised. ABSTRACT This study analyzes how market imperfections affect land productivity in a degraded low-potential cereal-livestock economy in the Ethiopian highlands. A wide array of variables is used to control for land quality in the analysis. Results of three different selection models were compared with least squares models using the HC3 heteroskedasticity-consistent covariance matrix estimator. Market imperfections in labor and land markets were found to affect land productivity. Land productivity was positively correlated with household male and female labor force per unit of land. Female-headed households achieved much lower land productivity than male-headed households. Old age of household heads was also correlated with lower land productivity. Imperfections in the rental market for oxen appeared to cause overstocking of oxen by some households. Conservation technologies had no significant positive short-run effect on land productivity. The main results were consistent across the different econometric models.. ii ACKNOWLEDGMENTS We are thankful for valuable comments from Peter Hazell and two anonymous reviewers on an earlier draft of this paper. Funds for this research have been received from the Research Council of Norway and the Norwegian Ministry of Foreign Affairs.
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