Determinants and Consequences of Land Sales Market Participation: Panel Evidence from India

12 Pages Posted: 17 Jul 2014

See all articles by Klaus Deininger

Klaus Deininger

World Bank - Development Economics Group (DEC); World Bank - Development Research Group (DECRG)

Songqing Jin

Michigan State University

Hari Nagarajan

Institute of Rural Management Anand (IRMA)

Date Written: June 23, 2008

Abstract

Although opinions on impacts of land market transfers are sharply divided, few studies explore welfare- and productivity-impact of land sales markets over a long time horizon and national scale. A panel spanning almost 20 years, together with an indicator of climatic (rainfall) shocks, allows us to assess factors underlying market-mediated land (sale and purchase) transactions and their impact on productivity and equity. Economic growth emerges as a key driver of such markets although shocks, their effect mitigated by bank presence, also increased market activity. Land sales improved productivity and helped purchasers, many of them formerly landless, to accumulate non-land assets and enhance their welfare.

Keywords: South Asia, India, land market, panel evidence, determinants, consequences

Suggested Citation

Deininger, Klaus and Jin, Songqing and Nagarajan, Hari, Determinants and Consequences of Land Sales Market Participation: Panel Evidence from India (June 23, 2008). World Development, Vol. 37, No. 2, 2009, Available at SSRN: https://ssrn.com/abstract=2466892

Klaus Deininger

World Bank - Development Economics Group (DEC) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/kdeininger

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Songqing Jin

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

Hari Nagarajan (Contact Author)

Institute of Rural Management Anand (IRMA) ( email )

Anand - 388 001
India

HOME PAGE: http://https://www.irma.ac.in/ifaculty/facultydetails.php?fid=428

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