Land markets and the distribution of land in northwestern Tanzania
December 1, 2017 - Author: Wineman, A., and Liverpool-Tasie, L.S.O.
Land markets and the distribution of land in northwestern Tanzania (2017). Wineman, A., and Liverpool-Tasie, L.S.O. Land Use Policy.
Land market transactions can have potentially divergent effects on the distribution of land. While they may lead to a concentration of land in the hands of a wealthy minority, the market can also serve as an alternative avenue of land access for those with a limited inheritance. This paper explores the distributional implications of land sales and rental markets in northwestern Tanzania. Using household-level data collected in 2014, we find that households use the land market (particularly the sales market) to adjust their farm size to compensate for a small inheritance, while households with a larger initial endowment are more likely to dispose of land, including through the market. Our results suggest that the local land market, characterized by widespread participation, ultimately increases the equitability of land distribution.