Quantifying Spillover Effects from Large Farm Establishments: The Case of Mozambique

32 Pages Posted: 20 Apr 2016 Last revised: 27 Apr 2018

See all articles by Klaus Deininger

Klaus Deininger

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

Fang Xia

University of International Business and Economics (UIBE); World Bank

Aurelio Mate

Republic of Mozambique - Ministry of Agriculture

Ellen Payongayong

Michigan State University

Date Written: October 29, 2015

Abstract

Almost a decade after large land-based investment for agriculture increased sharply, opinions on its impact continue to diverge, partly because (positive or negative) spillovers on neighboring smallholders have never been rigorously assessed. Applying methods from the urban literature on Mozambican data suggests that changes in the number and area of large farms within 25 or 50 kilometers of these investments raised use of improved practices, animal traction, and inputs by small farmers without increasing cultivated area or participation in output, credit, and nonfarm labor markets; or, once these factors are controlled for, yields. The limited scope and modest size of the estimated benefits point toward considerable unrealized potential. The paper discusses ways to systematically explore the size of such potential and the extent to which it is realized.

Keywords: Food Security, Crops and Crop Management Systems, Climate Change and Agriculture, Inequality, Hydrology, Rural and Renewable Energy, Renewable Energy

Suggested Citation

Deininger, Klaus and Xia, Fang and Mate, Aurelio and Payongayong, Ellen, Quantifying Spillover Effects from Large Farm Establishments: The Case of Mozambique (October 29, 2015). World Bank Policy Research Working Paper No. 7466, Available at SSRN: https://ssrn.com/abstract=2683691

Klaus Deininger (Contact Author)

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

Fang Xia

University of International Business and Economics (UIBE) ( email )

10, Huixin Dongjie
Changyang District
Beijing, Beijing 100029
China

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Aurelio Mate

Republic of Mozambique - Ministry of Agriculture

Maputo
Mozambique

Ellen Payongayong

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

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