The short-run effects of the 1996/97 land redistribution on farm practices and agricultural productivity in Amhara region of Ethiopia

Abstract

This study investigated the short-run effects of the 1996/97 land redistribution in Amhara region on farm practices and agricultural productivity of farmers in the affected areas. A difference-in-difference estimation technique was employed using agro-ecologically similar control groups from the border sharing administrative zones of Oromia region. We found a significant negative effect of the land redistribution on crop yield and value of crop yield. Analysis of household survey data suggested that the land redistribution reduced agricultural productivity by distorting the allocation of agricultural inputs. In other words, rural land markets are highly imperfect and the poor beneficiaries of the land redistribution could not afford to purchase oxen and other key farm inputs in the short-run due to imperfect credit markets. This study suggests the need to improve targeting of existing pro-poor programs, such as credit, agricultural extensions and rural capacity buildings, which enhance rural factor markets, such as land rentals, to boost the agricultural productivity effects of redistributive land reforms both in the short-run and
long run.