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6C<A69:H= 6C9 I=: 8DCIG>7JI>DC 6C9 >BEDGI6C8: D; G>8: ;6GB:GH >C8AJ9>C<
9:PC>I>DCH D; 9>Y:G:CI 8DCIG68IH 6C9 I=:>G EG:K6A:C8: #I >H >BEDGI6CI ID 8DC
H>9:G L=N 6C9 L=:C IG6CH68I>DCH I=GDJ<= I=: >C;DGB6A 6<G>8JAIJG6A A6C9 G:CI6A
B6G@:I H=DJA9 7: G:<6G9:9 6H 6C :Y:8I>K: IDDA ;DG :C=6C8>C< I=: L:A;6G: D; I=:
;6GB:GH 6C9 L=6I L6N >; 6CN <DK:GCB:CI 86C >CI:GK:C: .=>H >HHJ: >H 9>H
8JHH:9 >C 8DC?JC8I>DC L>I= 6 G:K>:L D; I=: G:A6I:9 A>I:G6IJG: 6H >I >H 8DCH>9:G:9
6C >CI:<G6A IDE>8 ;DG I=>H I=:H>H
.=: G:B6>C>C< H:8I>DCH D; I=>H 8=6EI:G 6G: 9:KDI:9 ID 9:PC>C< 6C9 6HH:HH
>C< I=: K6G>DJH >CHI>IJI>DC6A 6C9 B:8=6C>86A :A:B:CIH D; I=: A6C9 B6C6<:B:CI
HNHI:B >C 6C<A69:H= .=:H: =6K: H><C>P86CI >BE68IH DC I=: ;JC8I>DC>C< D;
I:C6C8N 8DCIG68IH .=: HJ7H:FJ:CI :BE>G>86A LDG@ 7J>A9H JEDC I=: G:A6I>DC
H=>E 7:IL::C E6GI>8JA6G 8=6G68I:G>HI>8H D; I=: I:C6CI ;6GB:GH 6C9 I=: A6C9ADG9
;6GB:GH >C GJG6A 6C<A69:H= 6C9 I=>H >H EG:H:CI:9 >C =6EI:GH ID #.+ '3-1'*+8./ )4342>
6C<A69:H= >H 6 ADL
AN>C< 8DJCIGN AD86I:9 >C -DJI= H>6 DGB:9 7N 6 9:AI6>8
EA6>C 6I I=: 8DCQJ:C8: D; I=: !6C<:H *69B6 G6=B6EJIG6 $6BJC6 6C9
':<=C6 G>K:GH 6C9 I=:>G IG>7JI6G>:H 6C<A69:H=SH 6AAJK>6A HD>A >H =><=AN ;:G
I>A: 7JI KJAC:G67A: ID QDD9 6C9 9GDJ<=I -IG699A>C< I=: .GDE>8 D; 6C8:G
6C<A69:H= =6H 6 HJ7IGDE>86A BDCHDDC6A 8A>B6I: 8=6G68I:G>O:9 7N =:6KN H:6
HDC6A G6>C;6AA BD9:G6I:AN L6GB I:BE:G6IJG:H 6C9 =><= =JB>9>IN (6IJG6A
86A6B>I>:H HJ8= 6H QDD9H IGDE>86A 8N8ADC:H IDGC69D:H 6C9 I>96A 7DG:H 6Y:8I
I=: 8DJCIGN 6ABDHI :K:GN N:6G 6C<A69:H= >H 6Y:8I:9 7N B6?DG 8N8ADC:H DC 6K
:G6<: I>B:H 6 9:869: #C 6C<A69:H= L6H I=: H:K:CI= A6G<:HI 8DJCIGN
>C I=: LDGA9 >C I:GBH D; EDEJA6I>DC L>I= B>AA>DC E:DEA: .=: EDEJA6I>DC
>H HI>AA <GDL>C< 6I 6 =><= G6I: 6C9 I=: <GDLI= G6I: D; EDEJA6I>DC >H HI>AA E:G8:CI >C 6H H=DLC >C .67A: .=: EDEJA6I>DC 9:CH>IN L6H BDG: I=6C
E:DEA: E:G HFJ6G: @>ADB:IG:
Table 2.1 Macro indicators of Bangladesh (2010)
Population, total (million)
Population ages 0-14: 15-64: 65+ (% of total)
Population growth (annual %)
Rural population (% of total population)
Population density (people per sq. km)
Literacy rate, adult total (% of people aged 15 and
above)
Land area: surface area (sq. km)
Arable land (% of land area)
Agricultural land (% of land area)
Permanent cropland (% of land area)
Irrigated land (% of cropland)
Forest area (% of land area)
Nationally protected areas (% of total land area)
Renewable internal freshwater resources per capita
(cubic metres)
Crop production index (1999-2001 = 100)
Livestock production index (1999-2001 = 100)
GDP (current US$ billions)
GDP growth (annual %)
Agriculture: manufacturing: services, value added (%
of GDP)
Ores and metals exports: imports (% of merchandise
exports: imports)
Aid (% of GNI)
Source: World Bank, 2010
Score
148.7
32.0: 64.1 :3.8
1.2
72.9
1,229.2
56
130,170: 144,000
61.1
69.2
3.5
56.1
6.7
0.7
665.6
111.1
105.1
30.1
4.8
30.3: 21.5: 48.3
0.3: 3.2
2.0
H :K>9:CI ;GDB DI=:G -DJI= H>6C 8DJCIG>:H 6<G>8JAIJG: EA6NH 6 9DB>C6CI
E6GI >C I=: DK:G6AA :8DCDBN .67A: 88DG9>C< ID I=: 1DGA9 6C@ G:EDGI >C
>I 688DJCI:9 ;DG 7:IL::C ID E:G8:CI D; I=: <GDHH 9DB:HI>8 EGD9J8I
!* 6BDC< I=:H: 8DJCIG>:H :BEADN:9 BDG: E:DEA: I=6C 6CN DI=:G H:8IDG
6H BJ8= 6H E:G8:CI >C BDHI 86H:H G:EG:H:CI:9 6 B6?DG HDJG8: D; ;DG:><C
:M8=6C<: HJEEA>:9 I=: 7JA@ D; 76H>8 ;DD9 6C9 EGDK>9:9 HJ7H>HI:C8: 6C9 DI=:G
>C8DB: ID BDG: I=6C =6A; D; I=: EDEJA6I>DC
Table 2.2 Land and population dynamics in South Asia
Country
Land
Agri. Population Employment
(mill.
Land (1999)
Agriculture Industry
ha)
(%) (mill.)
%
%
Nepal
13.7
19
24
Pakistan
77.1
27
138
ndia
297.3 57
1014
Bangladesh
13.0
70
129
Sri Lanka
6.46
29
19
Bhutan
4.70
3
2.1
Maldives
na
na
0.3
Regional
412.3
1326
Source: FAO STAT (1990, 2001)
93.4
45.5
60.1
65.1
46.3
94.0
20.2
60.0
0
21.5
18.1
19.8
22.9
0.5
32.7
16.7
Land per
Service capita
1990
%
(ha)
6.4
0.26
33.0
0.40
21.8
0.34
15.1
0.12
30.8
0.26
5.5
0.29
48.1
na
23.3
0.28
.67A: H=DLH I=: 8=6C<:H >C D88JE6I>DC D; I=: E:DEA: D; 6C<A69:H= ;GDB
ID #C I:GBH D; :BEADNB:CI 6<G>8JAIJG6A H:8IDG =6H 8DCH>HI:CIAN
7::C 8:CIG6A ID I=: 6C<A69:H=> :8DCDBN .=:G: L6H 6 <G69J6A >C8G:6H: >C
:BEADNB:CI >C I=: H:GK>8: H:8IDG "DL:K:G BDHI D; I=: :BEADNB:CI >C I=:
H:GK>8: H:8IDG >C8AJ9:H 96>AN A67DJG:GH 6C9 =6L@:GH L=>8= 6G: K:GN H:6HDC6A
6C9 ADL
E6>9 LDG@:GH :86JH: D; I=: 9DB>C6C8: D; 6<G>8JAIJG: >C :BEADNB:CI
6C<A69:H= >H 86I:<DG>O:9 6H 6C 6<G6G>6C :8DCDBN <G>8JAIJG: 6AHD EA6NH 6 @:N
GDA: >C 6C<A69:H= 7N 8DCIG>7JI>C< E:G8:CI D; >IH :MEDGIH E:G8:CI D; >IH
!* 6C9 :BEADN>C< BDG: I=6C E:G8:CI D; >IH A67DJG ;DG8: >C 1DGA9
6C@ .=: 8DJCIGNSH B6>C :C9DLB:CIH >C8AJ9: >IH K6HI =JB6C G:HDJG8: 76H: G>8=
6<G>8JAIJG6A A6C9 G:A6I>K:AN 67JC96CI L6I:G 6C9 HJ7HI6CI>6A G:H:GK:H D; C6IJG6A
<6H "DL:K:G EDEJA6I>DC EG:HHJG: 8DCI>CJ:H ID EA68: 6 H:K:G: 7JG9:C DC EGD
9J8I>K: 86E68>IN 8G:6I>C< 6 ;DD9 9:P8>I :HE:8>6AAN D; G>8: 6C9 L=:6I
DG:><C
6HH>HI6C8: 6C9 8DBB:G8>6A >BEDGIH PAA I=: <6E /C9:G:BEADNB:CI >H 6 H:G>
DJH EGD7A:B 6C9 6 <GDL>C< 8DC8:GC ;DG 6C<A69:H=SH 6<G>8JAIJG6A H:8IDG L>AA
7: >IH 67>A>IN ID 67HDG7 699>I>DC6A B6CEDL:G
>C9>C< 6AI:GC6I>K: HDJG8:H D;
:BEADNB:CI L>AA 8DCI>CJ: ID 7: 6 96JCI>C< EGD7A:B ;DG ;JIJG: <DK:GCB:CIH
E6GI>8JA6GAN L>I= I=: >C8G:6H>C< CJB7:GH D; A6C9A:HH E:6H6CIH L=D 6AG:69N 68
8DJCI ;DG 67DJI =6A; I=: GJG6A A67DJG ;DG8:
Table 2.3 Changes in the occupation of workers, 1987 to 2007 (percent of all workers)
Occupation
Primary occupation
Primary plus secondary
occupation
A
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held by the University of Adelaide Library.
Source: Hossain, 2009
'3* $8+ '3* '3* /897/(:9/43 /3 '3-1'*+8.
.67A: H=DLH 8=6C<:H >C I=: JH: D; A6C9 6G:6 ;GDB ID <G>8JAIJG6A
A6C9 B69: JE E:G8:CI D; A6C9 6G:6 >C 8JAI>K6I:9 A6C9 EAJH L:I A6C9H 6H
H=DLC >C .67A: L=>A: JG76C A6C9 688DJCI:9 ;DG E:G8:CI EEGDM>B6I:AN
E:G8:CI D; 6C<A69:H=SH I:GG>IDGN L6H ;DG:HI:9 6C9 I=: 6K:G6<: 6CCJ6A G6I:
D; 9:;DG:HI6I>DC L6H E:G8:CI DK:G I=: E:G>D9 ID *GDI:8I:9 6G:6H
B69: JE E:G8:CI D; 6C<A69:H=SH A6C9 6G:6 1DGA9 6C@ 88DG9>C<
ID H>6C :K:ADEB:CI 6C@SH 86A8JA6I>DC >C DCAN G>8: L6H <GDLC
>C E:G8:CI D; I=: IDI6A 8JAI>K67A: A6C9 D; L=>8= E:G8:CI L6H 9:9>86I:9 ID
=><= N>:A9>C< BD9:GC K6G>:I>:H 6C<A69:H= >H EGDC: ID 6CCJ6A QDD9>C< L>I=
E:G8:CI D; I=: 8DJCIGNSH A6C9 6G:6 L>I=>C QDD9EA6>CH .=: G:B6>C>C< 6G:6
8DCH>HIH D; =>AAH E:G8:CI 6C9 I:GG68:H E:G8:CI "><=
>CI:CH>IN 8GDEE>C<
I:8=C>FJ:H HD>A 6C9 G>K:G76C@ :GDH>DC 6C9 ADHH D; L:IA6C9H G:HJAI>C< ;GDB QDD9
8DCIGDA 9G6>C6<: 6C9 >GG><6I>DC EGD?:8IH 6G: 86JH>C< HJ7HI6CI>6A A6C9 9:<G696
I>DC 7
Table 2.4 Population and land use history of Bangladesh from 1920- 2001
1920
1950
1980
Population (millions)
33.43
41.88
86.97
Population density (person/sq.km.) 226
283
588
Total cultivated + settled area
7.82
8.89
9.24
(million/ha)
(53)
(60)
(62)
Total wetland area
3.38
2.88
2.65
(million/ha)
(23)
(19)
(18)
Total forest-woodland area
1.47
1.41
1.01
(million/ha)
(10)
(10)
(7)
Other areas
2.13
1.62
1.90
(million/ha)
(14)
(11)
(13)
2001
124.35
843
9.80
(66)
2.25
(15)
0.95
(7)
1.80
(12)
*values in the parenthesis show the percentage to the total areas
Source: (compiled from Flint and Richards (1991), BBS (2001).
6C<A69:H= =6H 6 ADC< =>HIDGN D; >C:FJ>I67A: 688:HH ID A6C9 #C GJG6A 6G:6H
>C E:G8:CI D; A6C9DLC:GH DLC:9 BDG: I=6C 68G:H :68= >C9>86I:9 6H
A6G<: ;6GB:GH >C ><JG: .:C E:G8:CI D; A6C9DLC:GH DLC:9 7:IL::C 6C9
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A:HH I=6C 68G:H B6G<>C6A ;6GB:GH E:G8:CI =69 A:HH I=6C 68G:H .=>H
>C:FJ>IN :M>HIH 9:HE>I: 6 H:G>:H D; A6C9 G:;DGBH >C I=: H 6C9 H I=6I
>C8AJ9:9 I:C6C8N G:;DGBH >BEDH:9 8:>A>C<H DC A6C9=DA9>C<H 6C9 EGDK>9:9 ;DG
I=: 9>HIG>7JI>DC D; EJ7A>8 A6C9 ID I=: A6C9A:HH - /99>C 6C9 "6FJ:
Figure 2.1 Changes in the land ownership distribution, 1984-2005 (percentage)
A
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held by the University of Adelaide Library.
Source: BBS Agricultural Census, 2005.
'DG:DK:G 6H H=DLC >C
><JG: >C E:G8:CI D; GJG6A =DJH:=DA9H
>C 6C<A69:H= DLC:9 67HDAJI:AN CD INE: D; A6C9 A6C9A:HH >C8AJ9>C< ;DG =DJH
>C< 6C9 I=: CJB7:G D; A6C9A:HH =DJH:=DA9H =69 <GDLC H>C8: .=>GIN
DC:
E:G8:CI D; GJG6A =DJH:=DA9H G:A>:9 DC 6<G>8JAIJG6A A6C9 6H I=:>G B6>C HDJG8: D;
>C8DB:
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;DG HD8>6A :8DCDB>8 6C9 EDA>I>86A EDL:G >C 6C<A69:H= :86JH: A6C9 >H H86G8:
:HI67A>H=>C< DLC:GH=>E G><=IH >H =><=AN 8DBE:I>I>K: .=: I=G:: BDHI 8DBBDC
EG>K6I: I:CJG: INE:H >C 6C<A69:H= 6G: DLC:G 8JAI>K6I>DC ;6GB:GH L=D 8JAI>K6I:
I=:>G DLC A6C9 7JI 6AHD A:6H:
>C A6C9 =:C8: B>M:9 I:C6CI 6C9 EJG: A6C9A:HH
I:C6CIH L=D DCAN 8JAI>K6I: DI=:G E:DEA:SH A6C9 .=: 9>HIG>7JI>DC D; I=:H: I=G::
INE:H D; I:CJG: G:A6I>DCH=>E >H >AAJHIG6I:9 >C ><JG: .=: CJB7:G D; I:C6CI
=DJH:=DA9H <G69J6AAN >C8G:6H: >C GJG6A 6C<A69:H= ;GDB E:G8:CI ID E:G8:CI
7:IL::C 6C9 #C GJG6A 6C<A69:H= I=: B6?DG>IN D; I=: I:C6CIH 6C9
I=: A6C9ADG9H 6G: G:A6I>K:AN HB6AA A6C9DLC:GH
Figure 2.2 Percentage distributions of farm holdings and area by type of tenure
A
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held by the University of Adelaide Library.
Source: BBS Agricultural census, 2005.
GDB ID I=: IDI6A CJB7:G D; I:C6CIH >C8G:6H:9 7N E:G8:CI ;GDB
B>AA>DC >C ID B>AA>DC >C L=>A: I=: 6G:6 6K6>A67A: ;DG I:C6C8N
G:B6>C:9 HI6<C6CI 6I B>AA>DC =6 - .=>H >C9>86I:H >C8G:6H:9
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K6G>DJH I:CJG>6A 6GG6C<:B:CIH >C .=: BDHI 8DBBDC I:C6C8N 6GG6C<:B:CI
L6H H=6G:8GDEE>C< L=>8= 688DJCI:9 ;DG C:6GAN E:G8:CI D; I=: IDI6A A:6H:9
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C:MI H:8I>DC 9:6AH L>I= I=: =>HIDGN D; 68I>DCH ID >BEA:B:CI A6C9 G:;DGBH H>C8:
Figure 2.3 Land tenancy distribution in Bangladesh, 1996/97
A
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held by the University of Adelaide Library.
Source: BBS, 2000
'3* !+,472 /3 '3-1'*+8.
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'DG:DK:G I=: CJB7:G D; A6C9A:HH E:DEA: :M:GI>C< EG:HHJG: DC A6C9 6H 6
A>B>I:9 G:HDJG8: >H >C8G:6H>C< 6GDJC9 I=: LDGA9 #C BDHI 9:K:ADE>C< 8DJCIG>:H
I:C6C8N G:;DGB EDA>8>:H 6G: 6 B6?DG E6GI D; A6C9 G:;DGB EDA>8>:H "DL:K:G >C
BDHI 8DJCIG>:H I=: G:;DGBH ;6>A:9 ID B::I I=: I6G<:I:9 D7?:8I>K:H HD ;6G
Table 2.5 Land regulation in various countries
Country
Key provisions
Exemptions
A
Impact
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held by the University of Adelaide Library.
Source: Faruqee and Kavin (1999)
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>BEA:B:CI:9 >C G:6A>IN 6C9 I=: B6G<>C6A ;6GB:GH 9>9 CDI 7:C:PI H><C>P86CIAN
;GDB I=:H: EDA>8>:H
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DLC:9 A6C9
Table 2.6 Land policy, administration time line and problems in Pakistan period (1950-1971) to Bangladesh
period (1971-1998)
Pakistan Period
A
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held by the University of Adelaide Library.
Source: CARE Rural Livelihood Programme Report, 2003
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Figure 2.4 Dominance of rice production in Bangladesh
A
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held by the University of Adelaide Library.
Source: BBS, 2005
Figure 2.5 Population growth and rice production in Bangladesh, 1970-2005
A
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held by the University of Adelaide Library.
Source: BBS, 2005
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Figure 2.6 Share of receipts among the rice farming tenants and landlords
A
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held by the University of Adelaide Library.
source: Alanda and Shoichi (2004)
43)1:8/43
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7:HI 8=D>8: ;DG 6 I:C6CI ;6GB:G 6;I:G ;JAA DLC:GH=>E 7:86JH: I=: I:C6CI ;6GB:G
=6H ID H=6G: =>H B6G<>C6A EGD9J8I>K>IN D; A67DJG L>I= I=: A6C9ADG9 .=>H >H K:GN
>BEDGI6CI E6GI>8JA6GAN ;DG 6C :8DCDBN L=:G: I=: G:CI6A B6G@:I >H IDI6AAN JCG:<
JA6I:9 .=:DG:I>86A 6C9 :BE>G>86A LDG@H DC I=:H: >HHJ:H L=:G: HDB: G:<JA6I>DCH
6G: EG:H:CI 6G: 9>H8JHH:9 =:G:
.=: G:B6>C>C< H:8I>DCH D; I=>H 8=6EI:G 6G: 9:KDI:9 ID I=: G:A6I>DCH=>E 7:
IL::C E6GI>8JA6G 8=6G68I:G>HI>8H D; I=: I:C6CI ;6GB:GH 6C9 I=: A6C9ADG9 ;6GB:GH
.=>H >H 6 G:A6I>K:AN G:8:CI 6G:6 I=6I >H 8DCH>9:G:9 >C I=: A>I:G6IJG: 7DI= ;GDB
I=: I=:DG:I>86A 6C9 :BE>G>86A 6C<A:H .=: :K>9:C8: D; 7DI= H>9:H >H G:K>:L:9
EGDK>9>C< >CEJI ;DG I=: DG><>C6A :BE>G>86A LDG@ >C I=>H I=:H>H .=:H: G:K>:LH
D; I=:DG>:H 6C9 :BE>G>86A LDG@H HJEEDGI 6C9 >CHE>G: I=: LDG@H >C I=>H I=:H>H >C
=6EI:GH ID )4342/) 4*+18 4, ".'7+)7455/3".'7+)7455/3- &/9. 4 !/80
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$)3!00%!2%$ /6%2 4)-% !.$ 2%!00%!2%$ /-%4)-%3 4(% 4%.!.4=3 3(!2% )3 /.%
(!,& 3/-%4)-%3 )4 )3 ./4 /-%4)-%3 4(% /54054 3(!2% %15!,3 4(% #/343(!2%
3/-%4)-%3 )4 $/%3 ./4 /-%4)-%3 02/$5#4)6)49 )3 ()'(%2 /. 3(!2%#2/00%$ ,!.$
4(!. /. /4(%2 490%3 /& 4%.!.#9 /2 7)4( 3%,&#5,4)6!4)/. 3/-%4)-%3 )4 )3 ./4
/-%4)-%3 3(!2%#2/00%23 !2% 0//2 3/-%4)-%3 4(%9 !2% 02/30%2/53 /-%4)-%3
3(!2%#2/00%23 02/$5#% 2)3+9 #!3( #2/03 3/-%4)-%3 4(%9 02/$5#% &/2 35"3)34%.#%
)IHJ@6 6C9 'JG6@6B> #C I=: A>I:G6IJG: H=6G:8GDEE>C< >H 9:PC:9 6H 6 8DCIG68I L=:G: I=: A6C9ADG9
HJEEA>:H I=: A6C9 I=: I:C6CI HJEEA>:H I=: A67DJG 6C9 CDC
A67DJG >CEJIH 6C9
I=:N H=6G: I=: DJIEJI #C I=: G:6A LDGA9 8DCIG68IH H>B>A6G ID H=6G:8GDEE>C<
6G: HI>AA 8DBBDC M6BEA:H >C8AJ9: 6<G>8JAIJG: >C &:6HI :K:ADE:9 DJCIG>:H
&H HIG6L7:GGN ;6GBH >C 6A>;DGC>6 1:AAH ;G6C8=>H: 8DCIG68IH >C
G>H@N C:><=7DJGH '8DC6A9SH <6H HI6I>DCH ?::EC:N 9G>K:GH >C I=: *=>A>EE>C:H
DC BDG: G>H@N GDJI:H )IHJ@6 6C9 EDDA>C< D; 86I8= 6BDC< $6E6C:H:
PH=:GB6C *A6II:6J .=: EJOOA: D; H=6G:8GDEE>C< HI6GIH L=:G: DJIEJI H=6G>C< >BEA>:H 6 9>H>C
8:CI>K: ID EGDK>9: >CEJIH L=>8= 6G: CDI H=6G:9 .=: 8A6HH>86A K>:L D; H=6G:
8GDEE>C< L6H PGHI >CIGD9J8:9 7N 96B -B>I= #C I=: PGHI KDAJB: D;
I=: (% %!,4( /& !4)/.3 -B>I= 9>H8JHH:9 I=: >HHJ:H HJGGDJC9>C< >C8:CI>K:H
>C=:G:CI
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'6GH=6AA ;DGB6A>O:9 I=: :X8>:C8N >BEA>86I>DCH D; H=6G: K:GHJH PM:9
G:CI
8DCIG68IH .=: 76H>8 EGD7A:B L>I= I=: '6GH=6AA>6C BD9:A >H I=6I I=: I:C6CI
I6@>C< I=: H=6G: 6H <>K:C L>AA 9:B6C9 A6C9 JE ID I=: ED>CI L=:G: >IH B6G<>C6A
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A>7G>JB H=6G: I=6I 8A:6GH I=: B6G@:I D; A6C9 .=: '6GH=6AA>6C BD9:A 6HHJB:H
I=6I I=:G: >H 6 E:G;:8I A67DJG B6G@:I L>I= :MD<:CDJH L6<: 9 E:G JC>I D; I>B:
LDG@:9 6C9 CD G>H@ >C 8GDE 8JAI>K6I>DC .=:G:;DG: >; 4 >H I=: A6C9ADG9SH DJIEJI
H=6G: 6C9 4 >H I=: I:C6CISH DJIEJI H=6G: 6C9 >H I=: PM:9
G:CI I=:C I=:
8DCIG68I HE:8>6A>O:H ID
-=6G: G:CI >; 4 6C9 >M:9 G:CI >; 4 6C9 L6<: 8DCIG68I >; 4 6C9 .=: I:C6CISH EGD9J8I>DC ;JC8I>DC >H ( ( 3 3 6C9 9:E:C9H DC A6C9
G:CI:9 >C :Y:8I>K: A67DJG >CEJI 3 6C9 CDC
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; 4( 3 3 9
0 L=:G: 0 >H I=: JC>I D; A67DJG 6I I=: I:C6CIHS 9>HEDH6A
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4( 9
4( GDB I=: 67DK: ILD 8DC9>I>DCH I=: PGHI 8DC9>I>DC >BEA>:H I=6I I=: :FJ>A>7
G>JB B6G<>C6A EGD9J8I D; A67DJG >H 6 BJAI>EA: D; I=: L6<: G6I: 6C9 I=: H:8DC9
:FJ6I>DC >BEA>:H I=6I I=: EGD9J8I>K>IN D; A6C9 7:8DB:H O:GD H +J>7G>6 6C9
,6H=>9 .6HA>B 6C9 )IHJ@6 6C9 "6N6B> :MEA6>C >C I=:>G
E6E:GH I=>H >BEA>:H I=6I >; I=: I:C6CI 6AHD 8=DDH:H I=: 6BDJCI D; G:CI6A A6C9
I=: 699>I>DC6A PGHI DG9:G 8DC9>I>DC LDJA9 7: :FJ6I>DC '6GH=6AA 6C9
HJ7H:FJ:CIAN I=: 6JI=DGH A>HI:9 67DK: 6G<J: >C I=:>G E6E:GH I=6I H>C8: I=: 8DHI
D; G:CI>C< 699>I>DC6A A6C9 >H :HH:CI>6AAN O:GD I=: B6G<>C6A EGD9J8I D; I=: A6C9
>H 9G>K:C ID O:GD !6A: $D=CHDC CDI:9 I=>H 8DC9>I>DC D; I=: R'6GH=6AAS
BD9:A L>I= 8DCH>9:G67A: H8:EI>8>HB ": ;DJC9 I=: G:FJ>G:B:CI I=6I I=: B6G
<>C6A EGD9J8I>K>IN D; A6C9 JC9:G H=6G:8GDEE>C< 7: 9G>K:C 9DLC ID O:GD ID 7:
E6GI>8JA6GAN HIG>8I
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8DCIG6HI ID I=: HI6C96G9 8DBE:I>I>K: H>IJ6I>DC L=:G: 6 8DBE:I>I>K: PGB =>G:H
JE ID I=: ED>CI L=:G: I=: B6G<>C6A EGD9J8I D; A67DJG >H :FJ6A ID I=: L6<: G6I:
.=JH :FJ6I>DC :B7D9>:H I=: ;6BDJH '6GH=6AA>6C E6G69><B D; >C:X8>:C8N
D; H=6G:8GDEE>C<L=:G: I=: B6G@:I >H C:K:G 8A:6G:9 6H >C 6 8DBE:I>I>K: B6G@:I
Figure 3.1 Marshallian inefficiency of sharecropping
vOutput
Marginal product of labour
Tenant’s share of marginal
product
1
r
2
5
w
4
6
Tenant’s hours of work
Sharecropper’s
optimum
Non-cooperative
equilibrium
Landlord’s
optimum
cooperative
equilibrium
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G:CI 8DCIG68I 6G:6 L=:G: 6G:6 >H I=:
9:69L:><=I ADHH 6G:6 .=: A6C9ADG9SH G:CI JC9:G 6 H=6G:8GDEE>C< 8DCIG68I 6G:6 ":C8: I=: A6C9ADG9 ADH:H 6G:6 >H ADHI ID I=: I:C6CI 6C9 >H 6
9:69L:><=I ADHH
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9D 7:II:G 7N DY:G>C< 6 PM:9
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ADHH ":C8: '6GH=6AA 6G<J:9 I=6I I=: H=6G:8GDEE>C< 8DCIG68I H=DJA9 C:K:G
7::C D7H:GK:9 JC9:G I=: PGHI 7:HI 8DC9>I>DC .=>H >BEA>:H ADD@>C< ;DG DI=:G
G:6HDCH L=N 6 H=6G:8GDEE>C< 8DCIG68I HI>AA EG:K6>AH
#; :YDGI >H 8DCIG68I>7A: I=: A6C9ADG9 86C ;DG8: I=: H=6G: I:C6CIH ID LDG@ 7N
HE:8>;N>C< I=: A:K:A D; :YDGI >C I=: 8DCIG68I
:AA 6C9 4JHB6C EGDEDH:9 6 BD9:A L=:G:7N 6 A6C9ADG9 6C9 6 I:C6CI
:68= 86A8JA6I: I=:>G <6>CH ;GDB 6 A:6H:9 EADI 6I I=: G6I: 4 L=:C 6HHJB>C< I=6I
6AA DI=:G I:C6CIH @::E I=:>G G6I: 6I 4 .=: DJI8DB:H ;GDB 6 8DCIG68I 6G: ; 6C9
; ;DG 6 A6C9ADG9 6C9 6 I:C6CI G:HE:8I>K:AN #; DC: 6HHJB:H I=6I I=: <6>CH ;GDB
6 L6<: A67DJG >H ; ;DG 6 I:C6CI 6C9 I=: <6>CH ;GDB DLC 8JAI>K6I>DC D; A6C9 >H ;
;DG 6 A6C9ADG9 I=:C I=: :FJ>A>7G>JB >H <>K:C 7N B6M>B>O>C< I=: (6H= ;DGBJA6
< L=:G:
< ; ; ; ; .=: K6AJ: D7I6>C:9 7N I=>H EGD8:9JG: >H I=:C H:I ID :FJ6A 4 7:86JH: D;
HNBB:IGN 8DCH>9:G6I>DCH .=: A6C9ADG9 L=D JHJ6AAN =6H I=: 76G<6>C>C< EDL:G
86C I=:C :MIG68I I=: :CI>G: 699>I>DC6A HJGEAJH 7N 6EEGDEG>6I:AN 9:I:GB>C>C< I=:
G:CI .=: 9>X8JAIN L>I= I=: :AA 6C9 4JHB6C BD9:A >H I=6I =DL 9D:H CDI 9:PC:
4 6C9 >I 9D:H CDI 86A8JA6I: 4 .=:G:;DG: I=: L>9: EG:K6A:C8: D; I=: H=6G:8GDEE>C< =6H G:B6>C:9 6 EJOOA:
)K:G H:K:G6A 9:869:H H:K:G6A I=:DG>:H 6G: EJI ;DGL6G9 ID :MEA6>C I=: :M>HI:C8:
6C9 >C8G:6H>C< IG:C9 D; H=6G:8GDEE>C< 6GDJC9 I=: LDGA9
H ,6N HJBB6G>O:H >C =>H 7DD@ %6%,/0-%.4 #/./-)#3 I=:G: 6G:
I=G:: 76H>8 G:6HDCH L=N H=6G:8GDEE>C< >H HI>AA EDEJA6G >C B6CN :8DCDB>:H
>)234 )& 7% $/ ./4 /"3%26% 3(!2%#2/00).' 7(%2% 4(%/29 4%,,3 53 4(%2% 3(/5,$
"% ./.% 4(%. 4(%2% )3 3/-%4().' 72/.' 7)4( 4(% 4(%/29 4 !.9 2!4% 4(% 4(%
/29 .%%$3 4/ "% !2'5%$ "9 ! &5,,%2 $%3#2)04)/. /& 2%!,)49 %#/.$ !4 ! -/2%
02!#4)#!, ,%6%, )& 3(!2%#2/00).' 34),, %8)343 )4 35''%343 4(!4 4(%2% !2% /4(%2 #/-
0%.3!4).' &!#4/23 4(!4 .%#%33)4!4% 35#( !. !22!.'%-%.4 & 4(%3% &!#4/23 #!. "%
#/22%#4%$ "9 !002/02)!4% 0/,)#9 4(% 3(!2%#2/00).' 7),, $%#,).% ()2$ 4(%3%
#/.42!#45!, 2%,!4)/.3()03 -!9 (!6% )-0,)#!4)/.3 &/2 /4(%2 +).$3 /& 4(% ,!.$,/2$
!.$ 4(% 4%.!.4 "%(!6)/52 35#( !3 4(% 02/6)3)/. /& #2%$)4 4/ 4(% 4%.!.4 #/.42!#4
).' 0!24)%3 2)3+ 02%&%2%.#%3 4(% 4%.$%.#9 4/ %6)#4 4(% 4%.!.43 !.$ 4(% ).#%.4)6%3
4/ -!+% ,/.'25. )-02/6%-%.43 ). #5,4)6!4)/.U ,6N .=: '6GH=6AA>6C IG69>I>DC L6H 7J>AI DC I=: >BEA>8>I 6HHJBEI>DC I=6I I=:
H=6G: 8DCIG68I G:;:GH ID DCAN DC: K6G>67A: H=6G: D; DJIEJI "DL:K:G 6H ED>CI:9
DJI 7N !6A: $D=CHDC 6C9 HJ7H:FJ:CIAN 9:K:ADE:9 7N =:JC< 6C9 DI=:G
6JI=DGH 6 8DCIG68I C::9 CDI 8DCI6>C DCAN DC: K6G>67A: =:JC< 7:<>CH
=>H 6C6ANH>H 7N 6G<J>C< I=6I B6CN G:6A
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D; A6C9 ID 7: 8JAI>K6I:9 CDC
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ID I=: G:CI6A
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67A: ID H=DL I=: *6G:ID :X8>:C8N D; H=6G:8GDEE>C< "DL:K:G JCA>@: IG69>I>DC6A
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6G9=6C 6C9 -G>C>K6H6C L:G: I=: PGHI ID :MI:C9 I=: 8DCK:CI>DC6A
JC>A6I:G6A B6M>B>O6I>DC 6EEGD68= ID 6 <:C:G6A :FJ>A>7G>JB 6EEGD68= JH>C< H6B:
H:I D; IG6CH68I>DC >I:BH 6H =:JC< .=:N 6AADL 7DI= A6C9ADG9 6C9 I:C6CI
>CQJ:C8: >C 9:I:GB>C6I>DC D; I=: H=6G:
G:CI6A L=>A: G:I6>C>C< I=: E:G;:8IAN
8DBE:I>I>K: A67DJG B6G@:I 6HHJBEI>DC D; =:JC< 6C9 '6GH=6AA .=: H=6G:
I:C6CI >C I=: 6G9=6C
-G>C>K6H6C BD9:A =6H I=: DEI>DC D; A:6H>C< >C A6C9 ID
8JAI>K6I: L>I= =>H DLC A67DJG DG LDG@>C< 6H L6<: A67DJG >C HDB: 6AI:GC6I>K:
:BEADNB:CI .=: I:C6CI >H 6HHJB:9 ID B6M>B>O: =>H JI>A>IN 9:PC:9 >C I:GBH
D; >C8DB: 6C9 A:>HJG: "DL:K:G 6G9=6C 6C9 -G>C>K6H6C 9D CDI EGDK>9: 6CN
EGDD; D; I=: :M>HI:C8: D; :FJ>A>7G>JB L=>A: I=:N 8A6>B I=6I I=: EG>8: D; A6C9 >H
CDI O:GD 7:86JH: 699>I>DC6A A6C9 LDJA9 EGDK>9: 699>I>DC6A JI>A>IN
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I:C6C8N >H I=: :M>HI:C8: D; 6<G>8JAIJG6A G>H@ .:C6C8N 8DCIG68IH I:GBH 6G: 7J>A9
JEDC I=: B6<C>IJ9: D; I=:H: EG:9>8I:9 6C9 JCEG:9>8I:9 G>H@H .=: -=6G:8GDE
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LDG@:GH D; 9>Y:G:CI 86E67>A>I>:H 6C9 PC6AAN 6H 6 IDDA ;DG I=G:6I D; :K>8I>DC
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D; H=6G:8GDEE>C< 6C9 :CG>8=:9 I=: :CK>GDCB:CI L=:G: I=:G: 6G: JC8:GI6>CI>:H
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G>H@N 9:CDI:9 7N (:L7:GN 6C9 -I><A>IO >C .67A: N H=6G>C< DJIEJI
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E6>9 K6G>:H L>I= I=: A:K:A D; DJIEJI 68=>:K:9 ":C8: I=: G:CI >H 69?JHI:9 :M
EDHI ID I=: G:6A>O6I>DC D; G>H@ #; I=: I:C6CI >H G>H@ 6K:GH: G:9J8>C< G>H@ L>AA
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6K:GH: I:C6CI 6C9 6 L6<: 8DCIG68I ;DG I=: A6C9ADG9 >;
=: >H 6AHD G>H@ 6K:GH:
"DL:K:G 7N G:9J8>C< I=: G>H@ D; 6 I:C6CI ;6GB:G 7N >C8G:6H>C< I=: A6C9
ADG9SH H=6G: 6AHD >C8G:6H:H I=: '6GH=6AA>6C 9>H>C8:CI>K: ID LDG@ ":C8: I=:G: >H
DCAN DC: >CHIGJB:CI 4 L=>8= >H 6K6>A67A: ID 68=>:K: ILD D7?:8I>K:H G:9J8>C<
G>H@ L=>8= >C8G:6H: I=: I:C6CISH :YDGI 6C9 :MIG68I>C< G:CI L=>8= G:9J8:H I=:
>C8:CI>K: ID LDG@ #; I=: A6C9ADG9 >C8G:6H:H 4 ID 67HDG7 BDG: G>H@ =: BJHI
9:8G:6H: ID H6I>H;N I=: I:C6CISH E6GI>8>E6I>DC 8DCHIG6>CI
Table 3.1: Summary of the findings of Newbery and Stiglitz (1979)
A
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held by the University of Adelaide Library.
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6G: HJBB6G>O:9 7N .67A: Table 3.2: Relative efficiencies of the landlord and the tenant in management and supervision, Eswaran and
Kotwal (1985)
A
NOTE:
This figure/table/image has been removed
to comply with copyright regulations.
It is included in the print copy of the thesis
held inbysupervision
the University of Adelaide Library.
Where μ1= efficiency of landlord
μ2= efficiency of tenant in management
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Figure 3.2 Tenant self-selection model (Hallagen, 1978)
output
F
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wL
effort
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Share rent
e2
Fixed rent
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Figure 4.1 Tenant self-selection model (Hallagen, 1978)
F
Output, Y
F-R
rF
R
(1-r)F
wF
entrepreneurial input
0
e1
Share
cropping
e2
Fixed rent
-R
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Figure 4.2 Productivity and utility maximization from different tenancy contracts
U
Output, Y
F
U(Yt,et)=V
F-R
(1-r)F
wF
entrepreneurial input
0
e1
Share
cropping
e2
e*
Fixed rent
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8=D>8: HI6IJH 86C 7: HE:8>P:9 7N
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Table 4.1: Variable definitions
Variable
log_output_ha
share
hhsize
male_agri_labour
female_agri_labour
ngom
edu_head
healthyp
femaleh
age_head
prim_occu_head
cow_no
Description
dependent variables
log of rice output per hectre
independent variables
= 1 if hh cultivate under share tenancy contract, 0 if hh cultivate his own
land
HH characteristics variables
household (HH) size (number) ( proxy for subsistence pressure)
total male agri worker (number)
total female agri worker (number)
socio- economic variables
= 1 if the hh has membership with any local NGO; 0 otherwise
education of HH head ; =1 if completed primary education; =0 otherwise
no. of healthy population in a HH
sex of HH; = 1 if HH head is female; =0 if male
age of head (number)
= 1 if the primary occupation of the head of HH is agriculture; =0
otherwise
number of bullocks used in cultivation
active_labour_force
number of active labour force in the hh
Irri_access
=0 if no irrigation; 1= pump; 2= tubewell; 3= govt.system
grplo
homestead_land
Cult_own_land
goat_ poultry _inc
Income_tree
credit_formal
credit_informal
experience
imprv_share
fp
dp
fv
s
loamy_soil
clay_soil
rainfall
year
land type variables of the HH
land ownership group: 1 if absolute landless or functionally
landless(<=0.20ha); 2 if marginal or small landowner (0.21-1.00) ; 3 if
lower or upper medium landowner (1.01-3.00) ; 4 if large landowner (>
3.00)
ownland: homestead (ha)
ownland: cultivable (ha)
capital variables of the HH
annual income from goat and poultry rearing (tk.)
annual income from tree, other plants (tk.)
access to credit
amount of credit from formal institutions (tk.)
amount of credit from informal institutions (tk.)
instrumental variables
=1 if rent in land under share tenancy last year; 0 otherwise
=1 if economic status improved last year due to additional rent in land; 0
otherwise
control variables
flood plane
drought prone
favourable environment
submergence
=1 of the soil is loamy; 0 otherwise
=1 of the soil is clay type; 0 otherwise
average rainfall of 54 districts in year 2000 and 2004
=1 if year 2000; 0 otherwise
Table 4.2: Differences in farm endowment, socio-economic characteristics and extent of land
transaction by participation status
Variables
Participating households
All farming
households
Percentage of transacting
Crop-share tenant
Owner cultivator
22.20
77.80
households
mean
SD
mean
SD
mean
SD
rice_ha
3.19
1.39
3.7
1.8
3.18
1.75
hhsize
5.31
2.35
5.74
2.48
5.64
2.45
total_agri_male
1.16
0.725
1.29
0.84
1.26
0.82
total_agri_female
0.02
0.104
0.019
0.13
0.017
0.13
ngom
0.38
0.48
0.25
0.43
0.28
0.45
edu_head
0.36
0.63
0.01
0.82
0.71
0.81
healthyp
4.90
2.29
5.21
2.44
5.14
2.41
femaleh
0.02
0.14
0.03
0.17
0.031
0.17
age_head
44.08
12.33
46.32
12.59
45.82
12.56
prim_occu_head
0.69
0.46
0.71
0.45
0.70
0.46
cow_no
1.31
1.46
2.06
2.22
1.89
2.10
active_labour
2.95
1.48
3.33
1.58
3.24
1.57
grplo
1.11
0.36
2.03
0.79
1.82
0.81
cultivated_land
0.003
0.031
0.51
0.78
0.39
0.72
goat_ poultry _inc
750.73
1,221.30
1,075.39
1,399.56
1,003.30
1,368.19
Income_tree
987.26
2,247.96
3,153.38
9,744.59
2,672.41
8,705.48
credit_formal
2,759.12
8,415.05
2,713.45
8,502.01
2,723.59
8,479.39
645.62
3,520.74
400.73
3,003.96
455.10
3,126.24
credit_informal
43 '7'2+97/) 89/2'9/43
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Figure 4.3: The estimated density of log_rice/ha among share tenants and owner cultivators
0
.5
Density
1
1.5
log_rice_ha
-1
0
1
log_rice_ha
2
3
4
share_tenant
owner
normal density
kernel = epanechnikov, bandwidth = 0.2000
Figure 4.4: The estimated density of log_crop_income/adult among share tenants and owner cultivators
0
.1
Density
.2
.3
.4
.5
log_crop_income
4
6
8
10
log_crop_income
12
14
share_tenant
owner
normal density
kernel = epanechnikov, bandwidth = 0.2000
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:HI>B6I:9 G:HJAIH D; G6C9DB
6C9 PM:9
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67A: >C 8DAJBC 8 6C9 9 >C .67A: #C I=: A>I:G6IJG: I=:G: 6G: 6G<JB:CIH 67DJI L=>8= B:I=D9 >H 7:II:GV G6C9DB
:Y:8I BD9:A DG PM:9
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HDJG8:H
>CI:G
=DJH:=DA9 68GDHH =DJH:=DA9 K6G>6I>DCH >C I=: 6K:G6<: EGD9J8I>K>IN
;GDB DC: =DJH:=DA9 ID 6CDI=:G 6C9
>CIG6
=DJH:=DA9 L>I=>C =DJH:=DA9 K6G>6I>DC L>I=>C :68= =DJH:=DA9 DK:G
I>B:
G:<G:HH>DC G:AN>C< DC >CI:G
=DJH:=DA9 K6G>6I>DC >H EGD7A:B6I>8 9J: ID ED
I:CI>6A DB>II:9 K6G>67A: 7>6H .=: HDAJI>DC >H ID ;D8JH DC >CIG6
=DJH:=DA9 K6G>
6I>DC L=>8= 86C 7: 86EIJG:9 7N I=: PM:9
:Y:8I BD9:A .=: >CIJ>I>DC 7:=>C9
I=>H BD9:A >H I=6I >I 9:6AH L>I= L>I=>C
=DJH:=DA9 K6G>6I>DC N >C8AJ9>C< PM:9
:Y:8IH 8DCIGDA K6G>67A: ;DG I>B: IG:C9 HJ8= 6HV N:6G DG G6>C;6AA DC: 86C 8DCIGDA
;DG I=: 6K:G6<: 9>Y:G:C8:H 68GDHH =DJH:=DA9H >C 6CN D7H:GK67A: 6C9 JCD7H:GK
67A: EG:9>8IDGH .=: PM:9
:Y:8I 8D:X8>:CIH HD6@ JE 6AA I=: 68GDHH
<GDJE 68I>DC
1=6I >H A:;I >H I=: L>I=>C
<GDJE 68I>DC L=>8= >H L=6I L: L6CI L=:G: I=: I=G:6I
D; DB>II:9 K6G>67A: 7>6H >H <G:6IAN G:9J8:9
I I=: :C9 D; .67A: I:HI G:HJAIH ;DG I=: K6A>9>IN D; I=: PM:9
:Y:8I BD9:A
DK:G G6C9DB
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I:HI ;DG 8DBE6G>C< PM:9
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I=: 8AJHI:G
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<>K:H 6 *
K6AJ: D; ;GDB I=: BD9>P:9 "6JHB6C I:HI HJ<<:HIH I=: G:?:8I>DC D;
I=: CJAA =NEDI=:H>H I=6I I=: G6C9DB
:Y:8I BD9:A EGDK>9:H 8DCH>HI:CI :HI>B6I:H
.=: HI6I>HI>8 G:EDGI:9 7N :618'4+& >H CJB:G>86AAN :FJ6A ID I=: I:HI HI6I>HI>8
G:EDGI:9 7N "6JHB6C <6>C ;DG I=: BD9:A L>I= #0 -.. 8DBB6C9 :6+84') 9D:H CDI HJEEDGI
EGD9J8>C< I=: 8AJHI:G
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I:HI LDJA9 <>K: 6C >C8DCH>HI:CI G:HJAI AI:GC6I>K:AN >C DG9:G ID 6KD>9 I=>H
I=: HIJ9N JH:H I=: :6+84') 8DBB6C9 D; -.. L=>8= EGDK>9:H #0 :HI>B6I>DC
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>C9>86I>C< I=6I 8GDE
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DLC:G
8JAI>K6IDG =DJH:=DA9 ":C8: ;DG I=: EGD9J8I>DC ;JC8I>DC I=: G:HJAIH 9D
CDI HJEEDGI I=: EG:H:C8: D; '6GH=6AA>6C >C:X8>:C8N 6BDC< I=: I:C6CI ;6GB:GH
.=:
HI6I>HI>8H >C I=: BD9:AH 6G: FJ>I: A6G<: HD DC: 86C 8DC8AJ9: I=6I I=:
G:<G:HH>DC BD9:A ;DG EG:9>8I>C< 9:E:C9:CI K6G>67A: L>I= I=: H:I D; >C9:E:C9:CI
K6G>67A: >H 7:II:G I=6C ?JHI JH>C< I=: B:6C
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:Y:8I BD9:A
DG I=: EGD9J8I>DC ;JC8I>DC I=: H=6G: 9JBBN K6G>67A: >H EDH>I>K: 6C9 H><C>;
>86CI .=>H >H DEEDH>I: ID I=: '6GH=6AA>6C =NEDI=:H>H DBE6G>C< I=: PM:9
:Y:8I BD9:A 6C9 IG:6IB:CI
:Y:8I BD9:A 6H B:CI>DC:9 7N 6B:GDC 6C9 .G>K:9>
T .=: IG:6IB:CI
:Y:8I BD9:A >BEDH:H BDG: HIGJ8IJG: .=: 7:C:PI B6N
7: >C8G:6H:9 EG:8>H>DC D; :HI>B6I>DC .=: 8DHI >H 6 <G:6I:G 8=6C8: D; B>HHE:8
>P86I>DC :GGDGU .=:G:;DG: >; I=: :GGDGH 6G: =:I:GDH8:96HI>8 6H I=:N 6G: H::
EE:C9>M 6C9 I=: #0 :HI>B6IDG G:B6>CH 8DCH>HI:CI 7JI I=: IG:6IB:CI
:Y:8IH :HI>B6IDG 7:8DB:H >C8DCH>HI:CI ":C8: ID 8=:8@ I=: GD7JHIC:HH D; I=:
G:HJAIH I=: HIJ9N C::9H ;JGI=:G >CK:HI><6I>DC
Table 4.3 Productivity efficiency of sharecropping: Random effect, fixed effect model (with and without IV) and treatment effect
model
Variables
Dependent variable: log_rice_ha
Random effect
model
(a)
Fixed effect
model
(b)
First stage
ngom
Production function
share
imprv
hhsize
ageh
ageh2
eduhead
femaleh
prim_oocu_head
grplo
healthyp
male_agri_labour
female_agri_labour
active_labour_force
clvt_own_land
homestead_land
cow_no
irri_access
income_goat_poul
income_trees
credit_formal
credit_informal
log_non_agri_income
constant
0.023
(0.028)
0.042
(0.028)
-0.031*
(0.017)
0.015**
(0.005)
-0.0002**
(0.00005)
-0.021
(0.020)
0.083
(0.080)
-0.034
(0.033)
-0.022
(0.074)
0.012
(0.017)
0.030*
(0.018)
0.009
(0.117)
0.0001
(0.016)
-0.008
(0.014)
0.006
(0.168)
0.002
(0.006)
-0.064
(0.042)
3.06e-06
(5.26e-06)
-2.50e-06
(2.21e-06)
-2.21e-06
(1.42e-06)
-2.74e-06
(3.02e-06)
-0.022**
(0.012)
1.078**
(0.212)
0.013
(0.077)
-0.019
(0.055)
-0.037
(0.034)
0.028**
(0.013)
-0.0003**
(0.0001)
0.006
(0.057)
-0.224
(0.187)
-0.066
(0.086)
0.206
(0.237)
0.031
(0.040)
0.107**
(0.042)
0.385*
(0.199)
0.011
(0.035)
-0.073
(0.047)
-0.377
(0.317)
0.006
(0.018)
0.090
(0.103)
-7.17e-06
(0.00001)
-6.66e-06**
(2.66e-06)
9.27e-06*
(5.26e-06)
-7.70e-06
(0.00002)
-0.061*
(0.033)
0.129
(0.549)
Model with instrumental variable relation with any NGO:
ngom
Random effect
model
Fixed effect
model
Treatment effect
model
(c)
(d)
(e)
0.080**
(0.026)
0.090**
(0.020)
0.270**
(0.159)
0.277
(0.291)
0.015
(0.045)
-0.036*
(0.018)
0.017**
(0.006)
-0.0002**
(0.00006)
-0.014
(0.022)
0.073
(0.094)
-0.038
(0.037)
-0.118
(0.134)
0.018
(0.018)
-0.029
(0.019)
0.047
(0.119)
-0.004
(0.018)
0.020
(0.037)
0.181
(0.265)
0.003
(0.006)
-0.057*
(0.031)
3.15e-06
(6.49e-06)
-1.72e-06
(1.82e-06)
-2.46e-06**
(1.37e-06)
-4.75e-06
(4.42e-06)
-0.021*
(0.012)
1.031
(0.201)
-0.836
(1.326)
0.023
(0.133)
0.029
(0.123)
-0.005
(0.058)
0.00004
(0.0005)
-0.044
(0.106)
0.177
(0.721)
-0.154
(0.198)
0.849
(1.087)
-0.070
(0.170)
0.181
(0.139)
-0.180
(1.006)
0.005
(0.069)
-0.223
(0.249)
-0.095
(0.808)
0.021
(0.035)
0.093
(0.112)
-0.00003
(0.00005)
-9.45e-06*
(6.59e-06)
9.56e-06
(7.99e-06)
-3.64e-06
(0.00002)
-0.051
(0.059)
1.151
(1.817)
0.064**
(0.030)
0.038
(0.031)
-0.031*
(0.016)
0.016**
(0.005)
-0.0002**
(0.00005)
-0.022
(0.019)
0.083
(0.089)
-0.035
(0.035)
-0.039
(0.077)
0.013
(0.016)
-0.032*
(0.018)
0.012
(0.104)
-0.00008
(0.016)
-0.004
(0.017)
0.060
(0.200)
0.002
(0.006)
-0.064**
(0.028)
3.31e-06
(6.17e-06)
-2.34e-06
(1.53e-06)
-2.24e-06*
(1.27e-06)
-3.07e-06
(3.61e-06)
-0.022*
(0.012)
1.076**
(0.182)
N
1014
1014
1014
1014
1014
F (30, 937)
3.06
Wald chi2(30)
111.67
107.20
10416.6
modified Hausman stat.
50.78
P- value
0.010
2
Hausman test, prob<chi
0.007
LR test of independent equation; prob.>chi2
0.013
** significant in 5% level, * significant in 10% level
Note: all equations control for average rainfall in different districts (64 districts) in 2000 and 2004, dummies for soil type and dummies for ecosystem: fp- flood prone,
dp- draught prone, fav-favourable, ir- irrigated. The estimation also check with random effect model and compare random effect vs. fixed effect using Sargan-Hansen
stat. for model without IV and Huasman test for the models with IV.
3*4-+34:8 "</9)./3- !+-7+88/43 4*+1
.D 8=:8@ I=: GD7JHIC:HH D; #0 :HI>B6I>DC I=>H HIJ9N JH:9 :C9D<:CDJH HL>I8=>C<
G:<G:HH>DC I=6I 86C 8DCIGDA 7DI= ;DG JCD7H:GK:9 H:A:8I>DC 7>6H 6C9 :C9D<:C:>IN
H B:CI>DC:9 >C I=: EG:K>DJH H:8I>DC ;DG I=: HL>I8=>C< G:<G:HH>DC BD9:A 6E6GI
;GDB I=: :C9D<:C:>IN D; 8DCIG68I HI6IJH I=: BD9:A G:A6M:H I=: G:HIG>8I>DC I=6I
6AA I=: 8DK6G>6I:H D; EGD9J8I>DC 6C9 >C8DB: ;JC8I>DCH =6K: I=: H6B: :Y:8I
DC I:C6CI 6C9 CDC
I:C6CI ;6GB:GH
DG >CHI6C8: 9>Y:G:C8:H >C G>H@
H=6G>C<
6II>IJ9:H 6C9 :C;DG8:B:CI 67>A>IN E6GIAN JCD7H:GK:9 H=DJA9 A:69 ID 9>Y:G:C8:H
>C A6C9
A:6H>C< 7:=6K>DJG 6C9 6AHD E:G;DGB6C8: D7H:GK:9 I=GDJ<= EGD9J8I>K>IN
6C9 C:I 8GDE >C8DB:
.=: #'& :HI>B6I:H D; I=: :C9D<:CDJH HL>I8=>C< G:<G:HH>DC BD9:A 6G: G:
EDGI:9 >C .67A: DAJBC 6 EG:H:CIH I=: :HI>B6I:9 8D:X8>:CIH D; H:A:8I>DC
:FJ6I>DCH DC 8=DDH>C< H=6G: I:C6C8N 6C9 8DAJBCH 7 6C9 8 EG:H:CI I=: EGD
9J8I>K>IN ;JC8I>DC ;DG I:C6CI ;6GB =DJH:=DA9 6C9 CDC
I:C6CI ;6GB =DJH:=DA9H
.=: 9>Y:G:C8:H >C I=: EGD9J8I>DC ;JC8I>DC 8D:X8>:CIH 7:IL::C I=: I:C6CI
6C9 I=: DLC:G =DJH:=DA9H >AAJHIG6I: I=: EG:H:C8: D; =:I:GD<:C:>IN >C I=: H6B
EA:
DG >CHI6C8: >C I=: EGD9J8I>DC ;JC8I>DC 6BDC< I=: H=6G: I:C6CI ;6GB:GH
DJIEJI E:G =:8I6G: H><C>P86CIAN >C8G:6H:H L>I= I=: CJB7:G D; 7JAAD8@H >C I=:
;6B>AN %19501 6C9 H><C>P86CIAN 9:8G:6H:H L>I= I=: CJB7:G D; ;:B6A: 6<G>8JA
IJG6A A67DJG:GH >C I=: ;6B>AN ( '/#.'5#)4+5.#$174 "DL:K:G ;DG I=: DLC:G
;6GB:GH I=: H>O: D; I=: =DJH:=DA9 **5+<' 6C9 CJB7:G D; B6A: 6<G>8JAIJG6A
A67DJG:GH >C I=: ;6B>AN /#.'5#)4+5.#$174 9:8G:6H:H I=: 8GDE DJIEJI E:G
=:8I6G: L=>A: I=: :ME:G>:C8:9 =DJH:=DA9 =:69 H><C>P86CIAN 8DCIG>7JI:H ID >C
8G:6H: I=: EGD9J8I>K>IN #)'* G:9>I 688:HH ;GDB >C;DGB6A HDJG8:H >C8G:6H:H
I=: EGD9J8I>K>IN D; I=: DLC:G 8JAI>K6IDGH 6AI=DJ<= I=: 8D:X8>:CI ;DG I=>H K6G>
67A: =6H CD H><C>P86CI :Y:8I DC I=: EGD9J8I>K>IN 6BDC< I=: H=6G: I:C6CIH
1>I=DJI 6 B>C>BJB 6BDJCI D; 8DAA6I:G6A >I >H 9>X8JAI ID <:I 688:HH ID 6CN INE:
D; 8G:9>I >C GJG6A 6C<A69:H= A>@: B6CN DI=:G 9:K:ADE>C< 8DJCIG>:H >C I=: LDGA9
.=: >CH><C>P86C8: D; I=: 8G:9>I K6G>67A: 6Y:8I>C< EGD9J8I>K>IN >C9>86I:H 8G:9>I
8DCHIG6>CIH 6BDC< I=: H=6G:
I:C6CI ;6GB:GH
DGG:A6I>DC 8D:X8>:CIH G:HJAIH ;GDB I=: EGD9J8I>DC ;JC8I>DCH H=DL I=6I I=:
4*15
6C9 4*15 6G: EDH>I>K: 6C9 C:<6I>K: ;DG DLC:G 8JAI>K6IDGH 6C9 ;DG H=6G:
I:C6CI ;6GB:GH G:HE:8I>K:AN 6AI=DJ<= CDC: D; I=:B 6G: H><C>P86CI ->C8: 4*15
6C9 4*15 6G: CDI H><C>P86CIAN 9>Y:G:CI ;GDB O:GD >I HJ<<:HIH I=6I >C I=: 96I6
H:I I=DH: L=D 8JAI>K6I: I=:>G DLC A6C9 DG 8JAI>K6I: JC9:G H=6G: I:C6C8N =6K: EGD
9J8I>K>IN CD 7:II:G DG A:HH I=6C I=6I D; 6 G6C9DB ;6GB>C< =DJH:=DA9 .=:G:;DG:
I=: HL>I8=>C< G:<G:HH>DC BD9:A 9D:H CDI HJEEDGI I=: EG:H:C8: D; '6GH=6AA>6C
>C:X8>:C8N L=>8= >H 6AHD 8DCH>HI:CI L>I= I=: G:HJAIH D; I=: PM:9
:Y:8I #0 BD9:A
Table 4.4 Full information maximum likelihood estimates of the switching regression model: log_rice_ha
Variables
log_rice_ha
Selection function
Crop-share tenant
ngom
hhsize
ageh
eduhead
femaleh
prim_oocu_head
healthyp
male_agri_labour
female_agri_labour
Ave. price_mv_2000
Ave. price_mv_2004
Ave. price_tv_2000
Ave. price_tv_2004
active_labour_hat
clvt_own_land
homestead_land
cow_no
irri_access
income_goat_poul
income_trees
credit_formal
credit_informal
Imprv_share
constant
N
LR test of independent
equation; prob.>chi2
sigma
rho
Production function
Own cultivator
(a)
0.282**
(0.136)
-0.261
(0.408)
-0.054
(0.034)
-0.190*
(0.116)
-0.029
(0.340)
-0.275*
(0.162)
-0.004
(0.049)
0.126
(0.104)
-0.877*
(0.481)
(b)
(c)
-0.092
(0.117)
0.013
(0.009)
0.033
(0.096)
0.157
(0.136)
-0.072
(0.047)
-0.007
(0.014)
0.041
(0.032)
-0.286*
(0.100)
-0.139**
(0.061)
0.014**
(0.005)
-0.018
(0.018)
0.031
(0.061)
-0.002
(0.027)
-0.005
(0.007)
-0.031*
(0.016)
0.050
(0.088)
0.050
(0.099)
-14.789**
(1.485)
-2.528
(2.527)
-0.016
(0.044)
-0.362**
(0.145)
-0.00009
(0.00004)
-2.62e-06
(0.00002)
2.46e-06
(9.02e-06)
0.00001
(0.00002)
0.191
(0.175)
-128.84**
(67.355)
0.004
(0.026)
-0.039
(1.091)
-0.925
(0.909)
0.036**
(0.013)
0.031
(0.045)
7.87e-06
(0.00001)
-1.61e-06
(4.11e-06)
-2.01e-06
(2.08e-06)
1.01e-06
(4.37e-06)
0.015
(0.044)
-26.365*
(20.088)
-0.019
(0.016)
-0.022
(0.013)
0.144
(0.185)
0.002
(0.006)
-0.105**
(0.025)
9.62e-06
(6.21e-06)
-4.50e-06**
(1.23e-06)
-6.33e-06
(7.00e-06)
4.72e-06*
(2.78e-06)
0.290**
(0.012)
-0.092
(0.306)
0.349**
(0.007)
0.103
(0.142)
47.51**
(11.062)
1507
0.000
** significant in 5% level, * significant in 10% level
Note: all equations control for average rainfall in different districts (64 districts) in 2000 and 2004, dummies for soil type and dummies for ecosystem: fp- flood prone,
dp- draught prone, fav-favourable, ir- irrigated.
Sigma1 and sigma2 are the square-roots of the variance of the residuals of the regression part of the model
The likelihood ratio test for joint independence of the three equations is 0.000. This leads to string rejection of the null hypothesis that independent estimates provides
consistent estimates.
89/2'9/43 '3* 39+757+9'9/438 4, 9.+
7+*/)9/;+ "9'
9/89/)8 ,742 9.+ 3*4-+34:8 "</9)./3- !+-7+88/43
4*+1
Table 4.5 Definition of expected outcome and treatment effect parameters
Sub-samples
Conditional prediction: expected value on the
dependent variable being observed/not being
observed
Crop-share tenant
Owner cultivator
Treatment effects
Crop-share tenant
E[Y1i|X,H=1]
E[Y0i|X,H=1]
TT
Owner cultivator
E[Y1i|X,H=0]
E[Y0i|X,H=0]
TU
Heterogeneity effects
BH1
BH2
TH
.67A: H=DLH I=: :ME:8I:9 K6AJ:H ;DG DJIEJI=6 6C9 I=: IG:6IB:CI
:Y:8I
G:A6I>DCH=>EH I=6I 86C 7: >9:CI>P:9 >C 6 HEA>I D; I:C6CI HJ7
H6BEA:H 6C9 I=:
DLC:G 8JAI>K6IDG HJ7
H6BEA:H .=: 9>6<DC6A 8:AAH 6G: I=: :ME:8I6I>DCH I=6I 6G:
68IJ6AAN D7H:GK:9 >C 6 H6BEA:
DG :M6BEA: " ! >H I=: :ME:8I:9
DJIEJI=6 D; 6 8GDE
H=6G: I:C6CI H6BEA: <GDJE .=: :ME:8I:9 DJIEJI=6 L>I=
DJI 6 8DCIG68I ;DG I=>H I:C6CI <GDJE LDJA9 7: 6 8DJCI:G;68IJ6A DJI8DB: .=:
H6B: AD<>8 LDJA9 9:H8G>7: I=: 68IJ6A 6C9 8DJCI:G;68IJ6A DJIEJI=6 ;DG I=: <GDJE
D; DLC:G 8JAI>K6IDGH
.=: :ME:8I6I>DCH >C .67A: 86C 7: JH:9 ID :HI>B6I: :ME:8I:9 9>Y:G:C8:H
>C 8DCHJBEI>DC 7:IL::C 6 I:C6CI 6C9 6C DLC:G ;6GB:G .=:H: 9>Y:G:C8:H 8DJA9
G:Q:8I I=: 68IJ6A :Y:8I D; 8GDE
H=6G: 8DCIG68I DG H>BEAN 9>Y:G:C8:H >C JCD7
H:GK:9 =:I:GD<:C:>IN
.=: :Y:8I D; I=: 8DCIG68I DC E:G;DGB6C8: =:C8: DJIEJI=6 ;DG I=DH: L=D
8JAI>K6I: JC9:G 6 H=6G: 8DCIG68I >H I=: :Y:8I D; I=: IG:6IB:CI DC I=: IG:6I:9
MEG:HH>C< L=6I =6H CDI =6EE:C:9 7JI 8DJA9 LDJA9 DG B><=I JC9:G 9>Y:G>C< 8DC9>I>DCH
..
" ! " ! L=:G: " 6C9 " 6G: 9:PC:9 >C .67A: 6H I=: DJIEJI=6 DG C:I 8GDE
>C8DB:69JAI L>I= DG L>I=DJI 6 8DCIG68I G:HE:8I>K:AN 6C9 9:CDI:H I=DH:
>C I=: H6BEA: L=D 8JAI>K6I: JC9:G 6 8GDE
H=6G: 8DCIG68I 6C9 O:GD DI=:GL>H: .=:
:Y:8I D; I=: IG:6IB:CI DC I=: JCIG:6I:9 86C 7: H>B>A6GAN 9:PC:9 ;DG I=DH:
L=D 6G: DLC:G 8JAI>K6IDGH 7JI 8DJA9 6AHD 7: 8DCIG68I:9 ;DG ;6GB>C<
" ! " ! .=: 6C9 E6G6B:I:GH <>K: I=: :ME:8I:9 E:G;DGB6C8: :Y:8I D; 6
G6C9DBAN 8=DH:C =DJH:=DA9 ;GDB I=: <GDJEH L=D 6G: I:C6CIH 6C9 L=D 6G:
CDC
I:C6CIH G:HE:8I>K:AN .=:H: 6G: EDA>8N G:A:K6CI IG:6IB:CI
:Y:8I K6G>67A:H
":8@B6C 6C9 0NIA68>A .=: EDA>8N G:A:K6CI IG:6IB:CI
:Y:8IH 86C 6AHD 7: 9>HI>C<J>H=:9 ;GDB I=: =:I
:GD<:C:>IN :Y:8I >C .67A: >GHI I:C6CI ;6GB:GH B6N =6K: 9>Y:G:CI EGD9J8
I>K>IN G:<6G9A:HH D; I=: >C8:CI>K: EGD7A:B 9J: ID DI=:G :C9D<:CDJH 9:I:GB>C6CIH
D; =DJH:=DA9 9:B6C9 .=>H 76H: =:I:GD<:C:>IN :Y:8I >H <>K:C ;DG I=:
ILD HI6I:H D; C6IJG:
" ! " ! " ! " ! L=:G: 6C9 6G: I=: 9>Y:G:C8:H >C DJIEJI=6 DG C:I 8GDE >C
8DB:69JAI 7:IL::C I=: I:C6CI 6C9 CDC
I:C6CI ;6GB:GH G:HE:8I>K:AN -:8DC9
6 IG6CH>I>DC6A =:I:GD<:C:>IN 86C 6AHD 7: 86A8JA6I:9 .=>H >H I=: 9>;
;:G:C8: D; DJIEJI=6 7:IL::C I=: I:C6CIH 6C9 CDC
I:C6CIH 6C9 >H
9J: ID K6G>6I>DCH >C I=: :ME:8I:9 C:I DJIEJI=6 DG C:I 8GDE >C8DB:69JAI D;
B:I=D9H D; 8GDE 8JAI>K6I>DC
.=:H: B:6HJG:H 86C 7: :HI>B6I:9 ;GDB I=: :C9D<:CDJH HL>I8=>C< G:<G:HH>DC
BD9:A .=:N 6G: C:8:HH6GN ID JC9:GHI6C9 >C=:G:CI 9>Y:G:C8:H >C EGD9J8I>K
>IN 7:IL::C I=: ILD <GDJEH 6C9 ID EGDE:GAN 6CI>8>E6I: EDI:CI>6A G:HEDCH:H ID
8=6C<:H >C A6C9 G:;DGB EDA>8N .=: :HI>B6I:9 K6AJ:H D; I=: IG:6IB:CI
:Y:8IH
6C9 I=: =:I:GD<:C:>IN :Y:8I 6G: 6H >AAJHIG6I:9 >C .67A: Table 4.6 Expected outcome and treatment effect parameters: log output/ha and log crop income/adult hh
Sub-samples
(a) Log crop output/ha
Crop-share tenant
Owner cultivator
Heterogeneity effects
Conditional prediction: expected value on the
dependent variable being observed/not being
observed
Crop-share tenant
Owner cultivator
Treatment effects
(Yc1-1 – Yc0-1) = farmer i’s
expected output under
tenancy minus his expected
output without tenancy
(sample contract farmers’
average outcomes under
tenancy): effect of treatment
on the treated (TT)
(Yc1-0 )= counterfactual (Yc0-0 ) =observed expected (Yc1-0 – Yc0-0)= non-tenant
output of owner act as output by owner
farmers expected income
a tenant
without tenancy minus his
expected income without
tenancy ( sample owner
farmers’ average crop income
from joining the tenancy) :
effect of treatment on the
untreated (TU)
(Yc0-1 - Yc0-0)= differences in TH = difference between the
(Yc1-1 - Yc1-0)=
differences in output
output between tenant and effect of tenancy on output
between tenant and
non-tenant group (BH0)
for the tenant and nonnon-tenant group (BH1)
tenant groups
(Yc1-1 ) =observed
expected output by
tenant
(Yc0-1 ) = counterfactual
output of tenant act as a
owner
.67A:H EG:H:CIH I=: :ME:8I:9 EGD9J8I>K>IN JC9:G 68IJ6A 6C9 8DJCI:G;68
IJ6A 8DC9>I>DCH ;DG GJG6A 6C<A69:H=
=5+)9+* :95:9.' '3* 97+'92+39+C+)9
'7'2+9+78 &DD@>C< 6I .6
7A: 8DCH>9:G>C< PGHI I=: D7H:GK:9 9>Y:G:C8:H >C DJIEJI=6 7:IL::C ILD
<GDJEH D; ;6GB>C< =DJH:=DA9H >C I=: H=69:9 8:AAH 6ADC< I=: 9>6<DC6A >I 86C 7:
H::C I=6I I=: CDC
I:C6CI ;6GB:GHS DJIEJI=6 L6H @<=6 A:HH I=6C I=6I D; I=: H=6G: I:C6CIH .=>H H>BEA: 8DBE6G>HDC >H B>HA:69>C< 6H >I 9D:H
CDI 688DJCI ;DG DI=:G JCD7H:GK:9 ;68IDGH I=6I B6N =6K: >CQJ:C8:9 DJIEJI .=:
A6HI GDL 69?JHIH ;DG I=>H =:I:GD<:C:>IN 6C9 H=DLH I=: 9>Y:G:C8: >C :ME:8I:9 DJI
EJI=6 1>I= I=: 8DJCI:G;68IJ6A 8DC9>I>DC I=: CDC
I:C6CIH 8JAI>K6I>C< JC9:G
6 8GDE
H=6G: 8DCIG68I I=: 6K:G6<: DJI8DB: LDJA9 7: >C8G:6H:9 7N @<=6
N 8DCIG6HI L>I= I=: 8DJCI:G;68IJ6A 8DC9>I>DC I=6I I=: I:C6CI
;6GB:GH 8JAI>K6I: 6H 6 CDC
I:C6CI I=:>G :ME:8I:9 DJIEJI LDJA9 7: @<=6
A:HH >C 6 8GDEE>C< H:6HDC /C9:G 7DI= 8DJCI:G;68IJ6A 8DC9>I>DCH
I=: I:C6CI ;6GB:GH H::B ID 7: BDG: EGD9J8I>K: I=6C DLC:G ;6GB:GH .=:G:;DG:
I=: G:HJAIH 9D CDI HJEEDGI I=: '6GH=6AA>6C >C:X8>:C8N =NEDI=:H>H
Table 4.7: Average expected crop output/ha for tenants and non-tenants in rural Bangladesh
Sub-samples
(a) Log crop output/ha
Crop-share tenant
Owner cultivator
Heterogeneity effects
Conditional prediction: expected value on the
dependent variable being observed/not being
observed
Crop-share tenant
Owner cultivator
Treatment effects
1.398 (Yc1-1 )
1.409 (Yc1-0 )
0.011 (Yc1-0 -Yc1-1)
-0.011(0.008) (Yc1-1 – Yc0-1)
-0.039(0.005)* (Yc0-0 - Yc1-0)
0.028*
1.407 (Yc0-1 )
1.370 (Yc0-0 )
-0.037 (Yc0-1 - Yc0-0)
.=: A6HI 8DAJBC >C I=: .67A: H=DLH I=: IG:6IB:CI
:Y:8IH D; I=: E:G;DG
B6C8: 6H I=: :ME:8I:9 8=6C<: >C DJIEJI ;DG G6C9DBAN H:A:8I:9 =DJH:=DA9H >C
:68= <GDJE DG I=: I:C6CI <GDJE I=6I LDJA9 =6K: 8GDEE:9 JC9:G DLC:G 8JAI>K6
I>DC I=: B:6C :Y:8I D; I=: I:C6C8N >H ID 9:8G:6H: DJIEJI 7N @<=6 "DL
:K:G ;DG I=: CDC
I:C6CI ;6GB:GH I=6I LDJA9 =6K: 8GDEE:9 JC9:G I:C6C8N I=:
B:6C :Y:8I D; =6K>C< CD 8DCIG68I 9:8G:6H:H DJIEJI 7N @<=6 .=: :Y:8I
D; I:C6C8N DC DJIEJI >H A6G<:G I=6C I=6I D; DLC:G 8JAI>K6IDGH .=: :HI>
B6I:9 IG:6IB:CI
:Y:8IH >C9>86I: I=6I 8GDEE>C< JC9:G I:C6C8N G:HJAIH >C =><=:G
DJIEJI I=6C 8GDEE>C< JC9:G DLC 8JAI>K6I>DC
":C8: I=: :HI>B6I:9 IG:6IB:CI
:Y:8IH >C9>86I: I=6I 8GDEE>C< JC9:G I:C6C8N
B6N =6K: 6 =><=:G DJI8DB: I=6C 8GDEE>C< JC9:G DLC 8JAI>K6I>DC .=>H G:HJAI
>H 8DCH>HI:CI L>I= I=: PC9>C<H ;GDB I=: PM:9
:Y:8I BD9:AH H:8I>DC 6C9
:C9D<:CDJH HL>I8=>C< G:<G:HH>DC BD9:AH H:8I>DC .6HA>B G@6C9 6C9 ,6=B6C 6G<J:9 I=6I EDDG ;6GB:GH
>C GJG6A 6C<A69:H= H::@ 8G:9>I ;GDB 9>Y:G:CI HDJG8:H 6I I=: 7:<>CC>C< D; I=:
8GDEE>C< H:6HDC L=>8= BJHI 7: G:E6>9 6;I:G I=: H:6HDC &>@: I:C6C8N 8DCIG68IH
I=:H: AD6CH 6G: H=DGI I:GB JHJ6AAN <>K:C ;DG DC: 8GDEE>C< H:6HDC
DG DLC:G
;6GB:GH H>C8: I=:N 9D CDI =6K: ID H=6G: 6CN DJIEJI L>I= DI=:GH >; I=:N I6@:
DJI 6 AD6C >I >H BJ8= :6H>:G ID G:E6N #I >H K:GN D;I:C I=: DEEDH>I: 86H: ;DG H=6G:
I:C6CI ;6GB:GH L=D 6G: 6AG:69N P<=I>C< ;DG I=:>G HJ7H>HI:C8: A>K>C< 6C9 DCAN
<:I 6 8:GI6>C H=6G: D; I=: IDI6A 8GDE DJIEJI HD I=: AD6CH 6G: 9>X8JAI ;DG I=:B
ID G:E6N H ;DG 6AI:GC6I>K: L6<: :BEADNB:CI .6HA>B ,:>H:C
6C9 HDB: DI=:G 6JI=DGH HI6I:9 I=6I >C GJG6A 6C<A69:H= LDG@>C< 6H 6
L6<: A67DJG:G JHJ6AAN B:6CH 7:>C< HD8>6AAN 9:<G69:9 ID I=: 7DIIDB GJC< ;6GB:G EDHH:HH>C< HDB: A6C9 L>AA CDI CDGB6AAN I6@: JE L6<: :BEADNB:CI ":
B6N =DL:K:G A:6H:
>C A6C9 JC9:G 8GDE
H=6G: DG DI=:G 6GG6C<:B:CIH >C DG9:G ID
:BEADN 6CN :M8:HH ;6B>AN A67DJG #I LDJA9 I=:G:;DG: 7: >C6EEGDEG>6I: ID G:<6G9
L6<: :BEADNB:CI 6H 6C 688:EI67A: 6AI:GC6I>K: ID I:C6C8N ;DG 6AA ;6GB:GH
)C I=: DI=:G =6C9 DC: H=DJA9 CDI ;DG<:I I=6I 6<G>8JAIJG: >C 6C<A69:H=
6AG:69N :BEADNH 6C9 HJEEDGIH ;6G IDD B6CN E:DEA: .=>H >H :K>9:CI ;GDB I=:
G:<G:HH>DC G:HJAIH I=6I >C I=: 86H: D; EGD9J8I>DC I=: 68I>K: A67DJG ;DG8: >H CDI
6 H><C>P86CI 8D:X8>:CI 6C9 ;DG I=: 8GDE >C8DB: ;JC8I>DC >I >C ;68I HJEEDGIH
9>B>C>H=>C< B6G<>C6A G:IJGCH ID A67DJG L>I= 6 C:<6I>K: 6C9 H><C>P86CI 8D:X
8>:CI AA D; I=:H: ;68IDGH 8DAA:8I>K:AN G:9J8: I=: C:I 8GDE >C8DB: D; I=: I:C6CI
;6GB:GH 6AI=DJ<= I=G:6I D; :K>8I>DC ;GDB I=: A6C9ADG9 ;DG8:H I=: I:C6CI ID 8JA
I>K6I: 8GDE
H=6G: A6C9 L>I= :X8>:C8N 6I A:6HI HJX8>:CI ID H:8JG: 6 G:C:L6A D;
I=: A:6H:
!4(:893+88 .+)0 ,47 3*4-+34:8 "</9)./3- !+-7+88/43 4*+1
.D 8=:8@ ;DG GD7JHIC:HH D; I=: G:HJAIH ;GDB I=: :C9D<:CDJH HL>I8=>C< G:<G:H
H>DC BD9:A I=>H HIJ9N ;JGI=:G :HI>B6I:H EGD9J8I>DC :X8>:C8N L=>A: I6@>C< >CID
688DJCI I=: 9:8>H>DC ID 8=DDH: 6 8GDE
H=6G: I:C6C8N .=>H G:FJ>G:H 6C 699>
I>DC6A HI6<: HD >I >H G:;:GG:9 ID 6H 6 I=G::
HI6<: :HI>B6I>DC EGD8:9JG: #C I=:
I=>G9 HI6<: D; I=: JHJ6A HL>I8=>C< G:<G:HH>DC BD9:A I=: HIJ9N JH:H HID8=6HI>8
EGD9J8I>DC ;GDCI>:G G:<G:HH>DC ;DG I:C6CIH 6C9 CDC
I:C6CIH <GDJEH -ID8=6HI>8
;GDCI>:G 6C6ANH>H 6HHJB:H I=6I :68= ;6GB =DJH:=DA9 EGD9J8:H A:HH I=6C >I B><=I
9J: ID 6 9:<G:: D; >C:X8>:C8N .=: G:HJAIH ;GDB I=: I=>G9
HI6<: ;GDCI>:G BD9:A
6G: EG:H:CI:9 >C .67A: .=>H HI6<: >C8AJ9:H >CHIGJB:CIH ;GDB I=: PGHI
HI6<: #CK:GH: '>AAH ,6I>DH
H:A:8I>DC :FJ6I>DC 6C9 EG:9>8I:9 EGD9J8I>K>IN K6G>67A: ;GDB I=: H:8DC9
HI6<: D;
I=: :C9D<:CDJH HL>I8=>C< G:<G:HH>DC BD9:A I I=: 7DIIDB D; .67A: G:HJAIH
;GDB I=: DJIEJI ;GDCI>:G BD9:A 6G: G:EDGI:9 L=>8= H=DLH I=6I I=6I I=:G: >H CD
I:8=C>86A >C:X8>:C8N 8DBEDC:CI >C I=: BD9:A .=>H >H I=: I:HI D; CJAA =NEDI=:H>H
5+)/# 6<6>CHI I=: 6AI:GC6I>K: =NEDI=:H>H 5+)/# #; I=:
CJAA =NEDI=:H>H >H IGJ: I=: HID8=6HI>8 ;GDCI>:G BD9:A G:9J8:H ID 6C )&- BD9:A
L>I= CDGB6A :GGDGH 6C9 I=: :6GA>:G ILD
HI6<: HL>I8=>C< G:<G:HH>DC BD9:A H=DJA9
<>K: 6 8DCH>HI:CI G:HJAI DG I=>H HIJ9N ;DG I=: I:C6CI ;6GB:GH I=: DJIEJI H=DLH
&, L>I= 6 8#.7' D; 6C9 ;DG I=: DLC:G 8JAI>K6IDG &, L>I= *
K6AJ: D; .=:G:;DG: I=: G:HJAIH 86C A:69 JH ID G:?:8I I=: 6AI:GC6I>K:
=NEDI=:H>H 6C9 I=: ILD
HI6<: :C9D<:CDJH HL>I8=>C< G:<G:HH>DC BD9:A H=DJA9
EG:9>8I 6 8DCH>HI:CI G:HJAI
Table 4.8: Third stage estimation of the transformed stochastic production frontier with adjusted for self-selective
choice decision
Variables
IMR (instrument for self selectivity)
nd
pro_expected (pro_hate from 2 stage)
ngom
hhsize
ageh
eduhead
femaleh
prim_oocu_head
grplo
healthyp
male_agri_labour
female_agri_labour
active_labour_hat
clvt_own_land
homestead_land
cow_no
irri_access
income_goat_poul
income_trees
credit_formal
credit_informal
Imprv_share
constant
Stochastic production frontier
Crop-share tenant
0.664
(0.502)
0.664*
(0.350)
0.085
(0.044)
-0.166
(0.134)
0.023**
(0.010)
0.055
(0.039)
0.365**
(0.149)
0.003
(0.049)
0.027
(0.077)
-0.012
(0.017)
0.009
(0.035)
-0.404**
(0.211)
-0.029
(0.035)
-7.583**
(3.168)
-0.093
(1.042)
-0.040**
(0.015)
0.053
(0.059)
-7.14e-06
(0.00001)
-0.00001
(9.43e-06)
-3.30e-06
(2.38e-06)
2.30e-06
(6.20e-06)
0.003
(0.046)
0.040
(0.598)
Own cultivator
-0.009
(0.094)
-0.073*
(0.042)
0.055
(0.036)
-0.101
(0.094)
0.018**
(0.007)
0.009
(0.021)
0.068
(0.101)
0.031
(0.036)
-0.060*
(0.036)
0.009
(0.012)
-0.042*
(0.021)
0.341**
(0.171)
-0.003
(0.023)
1.161*
(0.637)
0.694**
(0.348)
0.0001
(0.0008)
-0.118**
(0.043)
0.00002*
(0.00001)
-1.13e-06
(2.19e-06)
-1.31e-06
(1.49e-06)
4.49e-06
(4.31e-06)
1.607**
(0.309)
N
297
629
Wald chi2 (30)
77.63
103.18
Log likelihood
-13.59
-266.614
chibar2(01)
14.65
51.28
Prob> chibar2
0.00
0.00
* significant in 5% level, ** significant in 10% level
Note: all equations control for average rainfall in different districts (64 districts) in 2000 and 2004, dummies for soil type and
dummies for ecosystem: fp- flood prone, dp- draught prone, fav-favourable, ir- irrigated.
/=+* 9+3'39 ;8
" '3* % 24*+1
:7+ 9+3'39
B>M:9
H=6G: I:C6CI >H 6 =DJH:=DA9 DLC>C< 6C9 H=6G:8GDEE>C< A6C9 >C I=:
H6B: N:6G 6C9 H:6HDC #I =6H 7::C 6G<J:9 I=6I 9>Y:G>C< DEEDGIJC>IN 8DHIH 6G:
;68:9 7N DLC:G
8JAI>K6IDGH 6C9 8GDE
H=6G: I:C6CIH >C 9:K:ADE>C< 8DJCIG>:H 9>Y:G:C8: >C DEEDGIJC>IN 8DHIH B6N 6AHD 6EEAN 6H L:AA ID B>M:9
H=6G: I:C6CIH
6C9 EJG:
H=6G: I:C6CIH #C GJG6A 6C<A69:H= I=: DLC:GH=>E D; 6CN @>C9 D; A6C9
>H 6 EG>B6GN ;DGB D; L:6AI= #; I=: A6C9ADG9H 6G: G>H@ 6K:GH: 6C9 ADD@ ;DG A:HH G>H@
6K:GH: I=6I >H BDG: L:6AI=N I:C6CIH I=:C 6 B>M:9
H=6G: I:C6CI >H >C 6 7:II:G
EDH>I>DC ID D7I6>C 6 I:C6C8N 8DCIG68I L>I= BDG: Q:M>7A: 8DC9>I>DCH 8DBE6G:9
ID 6 EJG:
H=6G: I:C6CI #; I=>H >H I=: 86H: BDG: DJIEJI L>AA 7: EGD9J8:9 7N
EJG:
I:C6CIH 8DBE6G:9 L>I= B>M:9
I:C6CIH .67A: EG:H:CIH G:HJAIH ;GDB
)&- 6C9 #0 L=:G: EGD9J8I>DC ;JC8I>DC >H 8DCH>9:G:9 .=: 9:E:C9:CI K6G>67A:H
6C9 I=: H:I D; 8DK6G>6I:H 6G: I=: H6B: 6H >C I=: :6GA>:G H:8I>DCH
.=: )&- G:HJAIH >C 8GDE DJIEJI =6H CD H><C>P86CI 8D:X8>:CIH ;DG I=: B>M:9
H=6G: I:C6CI 9JBBN .=>H HJ<<:HIH I=6I I=:G: >H CD HI6I>HI>86AAN H><C>P86CI
K6G>6I>DC >C EGD9J8I>K>IN 7:IL::C B>M:9 I:C6CIH 6C9 EJG: I:C6CIH "DL:K:G
ID 8=:8@ ;DG 8DCH>HI:C8N D; I=: )&- G:HJAIH I=>H HIJ9N 6HHJB:H I=6I I=:G: 6G:
HDB: JCD7H:GK:9 ;68IDGH L=>8= 6Y:8I 7DI= I=: E:G;DGB6C8: D; 6 I:C6CI ;6GB:G
6C9 =>H 9:8>H>DC ID 8=DDH: 6 E6GI>8JA6G INE: D; I:C6C8N .=JH 6E6GI ;GDB JH>C<
8DCIGDA K6G>67A:H I=: :HI>B6I>DC C::9H ID 8DCIGDA ;DG :C9D<:C:>IN D; I:C6C8N
8=D>8:
#C I=: >CHIGJB:CI6A K6G>67A: BD9:A I=: HIJ9N >C8AJ9:H I=: 6BDJCI D; =DB:
HI:69 A6C9 6H 6C >CHIGJB:CI ;DG 68I>C< 6H 6 B>M:9 I:C6CI DG 6 EJG: I:C6CI .=:
>CIJ>I>DC 7:=>C9 I=>H >H I=6I 6AI=DJ<= I=: 6BDJCI D; DLC
8JAI>K6I:9 A6C9 9:
PC:H 6 ;6GB:G 6H 6 B>M:9 I:C6CI >I 6AHD 6Y:8IH I=: EGD9J8I>K>IN .=:G:;DG: I=:
6BDJCI D; DLC
8JAI>K6I:9 A6C9 86CCDI 7: JH:9 6H 6C >CHIGJB:CI ;DG I=: B>M:9
I:C6CI 9JBBN H B:CI>DC:9 :6GA>:G DLC>C< 6CN @>C9 D; A6C9 B6N >CQJ:C8: 6
A6C9ADG9 ID DY:G 6 I:C6C8N 8DCIG68I )LC:GH=>E D; 6 =DB:HI:69 9D:H CDI 6Y:8I
I=: EGD9J8I>K>IN D; G>8: 6H I=: ;6GB:GH 9D CDI 8JAI>K6I: G>8: DC HJ8= A6C9 "DL
:K:G I=>H DLC:GH=>E :C67A:H 6 ;6GB:G ID 7: H:A:8I:9 ;DG 8DCIG68I ;6GB>C< BDG:
:6H>AN 6C9 I=6I B6N >CQJ:C8: I=: I:C6C8N E6II:GC .:C6CIH >C GJG6A 6C<A69:H=
6G: 9G6LC B6>CAN ;GDB I=>H <GDJE D; ;6GB:GH EDHH:HH>C< HDB: A6C9 D; I=:>G DLC
B:CI>DC:9 >C "6GIB6C 6C9 DN8: $6CH:C ,6=B6C =B:9
6C9 .6HA>B .=: :HI>B6I>DC 6AHD 8=:8@:9 ;DG I=: GD7JHIC:HH I=GDJ<=
JH>C< I=: HI6I>HI>8 D; I=>H >CHIGJB:CI 6C9 ;DJC9 I=6I I=: K6G>67A: =DB:HI:69
A6C9 86CCDI 7: 8DCH>9:G:9 6H 6 L:6@ >CHIGJB:CI ;DG B>M:9
I:C6CI 8=D>8:
.=: #0 G:HJAIH =6K: CD H><C>P86CI 9>Y:G:C8:H >C I=: EGD9J8I>K>IN ;JC8I>DC
7:IL::C B>M:9 I:C6CIH 6C9 EJG: I:C6CIH .=: K6G>67A:H >C I=: #0 6G: 6ABDHI
I=: H6B: 6H JH>C< I=: )&- 6AI=DJ<= I=: HI6C96G9 :GGDG ;DG I=: B>M:9
I:C6CI
9JBBN >H A6G<:G I=6C I=6I D; )&- BDC< DI=:G K6G>67A:H DJIEJI >C8G:6H:H
H><C>P86CIAN ;DG I=: BD9:GC K6G>:IN D; G>8: 6C9 9:8G:6H:H H><C>P86CIAN ;DG I=:
IG69>I>DC6A K6G>:IN G>8: H >C I=: EG:K>DJH H:8I>DC I=: =DJH:=DA9SH HJ7H>HI:C8:
EG:HHJG: G:9J8:H DJIEJI=6
Table 4.9 OLS and IV model: log_rice_ha
(Variable of interest : mixed = 1 if the share tenant is mixed tenant; 0 if pure tenant)
Variables
log_rice_ha
OLS
(a)
IV
(b)
first stage : share
homes_land
Robust F (1,169)
Prob > chi2
mixed
ngom
rice_m
rice_t
hhsize
ageh
eduhead
femaleh
prim_oocu_head
grplo
clvt_own
healthyp
male_agri_labour
female_agri_labour
cow_no
irri_access
income_goat_poul
income_trees
credit_formal
credit_informal
constant
5.808**
(1.227)
22.390
0.057
(0.070)
0.019
(0.043)
0.332 **
(0.181)
-0.164**
(0.046)
-0.058**
(0.033)
0.013
(0.008)
0.068**
(0.034)
0.168
(0.105)
-0.014
(0.060)
-0.011
(0.086)
-0.728
(0.281)
0.035
(0.030)
0.016
(0.033)
-0.025
(0.111)
-0.031**
(0.017)
0.082
(0.067)
0.00001
(9.40e-06)
-2.60e-06 (7.17e-06)
0.024
(0.172)
0.020
(0.039)
0.332**
(0.168)
-0.165**
(0.043)
-0.059**
(0.030)
0.014
(0.009)
0.068**
(0.031)
0.168**
(0.096)
-0.017
(0.060)
-0.011
(0.079)
-0.728**
(0.260)
0.036
(0.029)
0.017
(0.126)
-0.024
(0.103)
-0.031**
(0.015)
0.081
(0.062)
0.00001
(9.01e-06)
-2.24e-06
(6.96e-06)
-2.24e-06
(1.63e-06)
1.06e-06
(3.79e-06)
0.488
(0.397)
-2.25e-06
(1.78e-06)
1.07e-06
(4.14e-06)
0.503
(0.437)
N
199
199
R-sq
0.316
0.315
Wald chi2
(28) 160.12
** significant in 5% level, * significant in 10% level
Note: all equations control for average rainfall in different districts (64 districts) in 2000 and 2004,
dummies for soil type and dummies for ecosystem: fp- flood prone, dp- draught prone, fav-favourable, ir- irrigated.
/C+7+3)+ /3 :95:935:9 39+38/9/+8 4)'9/43 +;+1 3,+7
+3)+
AI=DJ<= I=: :HI>B6I>DCH >C H:8I>DCH 6C9 9D CDI EGDK>9: H><C>P86CI
HJEEDGI :>I=:G ;DG '6GH=6AA>6C >C:X8>:C8N DG ADL:G DEEDGIJC>IN 8DHI 6BDC< I=:
EJG: 6C9 B>M:9
H=6G: I:C6CIH ;DAADL>C< G6>9D 6C9 8=6GN6 I=>H
6C6ANH>H 8DBE6G:H DJIEJI 6C9 >CEJI 9>Y:G:C8:H D; I=: ILD <GDJEH D; I:C6CI
.=: D7?:8I>K:H 7:=>C9 I=>H :HI>B6I>DC 6G: PGHIAN ID 8=:8@ I=: GD7JHIC:HH D;
I=: E:GK>DJH :HI>B6I>DC 6C9 H:8DC9AN 7N 8DBE6G>C< I=: DJIEJI 7:IL::C ILD
<GDJEH D; H=6G: I:C6CI =DJH:=DA9H DC: 688DJCIH ;DG I=: :M>HI:C8: D; B>HH>C<
>C8:CI>K:H 6C9 67>A>IN 7>6H &:I 6C9 7: I=: B>M:9
6C9 EJG:
H=6G:
I:C6CI =DJH:=DA9H G:HE:8I>K:AN .=JH I=: 9>Y:G:C8: 7:IL::C DJIEJI 6C9 >CEJIH
7:IL::C I=:H: ILD INE:H D; I:C6CIH L>AA 7:
; : 7
: 8 ;DG 6AA , "DL:K:G DC: 8DJA9 6G<J: I=6I 8DCIG68I 9:H><CH 6G: 6Y:8I:9 7N AD86I>DC DG
8GDE INE: 6C9 6G: =DBD<:C:DJH >CH>9: 6 AD86I>DC DG ;DG 6 E6GI>8JA6G 8GDE INE:
.D @CDL L=:I=:G I=:G: 6G: H><C>P86CI :Y:8IH D; AD86I>DC >C I=: :HI>B6I>DC I=>H
HIJ9N ;DAADLH G6>9DSH B:I=D9 D; G:EA68>C< I=: 8DCHI6CI I:GBH 7N AD86
I>DC :8DHNHI:B 9JBB>:H .=:H: 9JBB>:H 86EIJG: I=: B:6C 9>Y:G:C8: D; I=:
9:E:C9:CI K6G>67A:H 7:IL::C B>M:9
6C9 EJG:
H=6G: I:C6CIH D; I=: G:HE:8I>K:
AD86I>DC .=: :GGDG I:GBH >C :FJ6I>DCH 6C9 6G: 6HHJB:9 ID =6K: O:GD
B:6C 6C9 PC>I: K6G>6C8: /C9:G I=>H 6HHJBEI>DC :FJ6I>DC L=>8= >C8AJ9:H
AD< DJIEJI 6H 9:E:C9:CI K6G>67A: G:FJ>G:H ?D>CI :HI>B6I>DC ->B>A6GAN :FJ6I>DC
L=>8= >C8AJ9:H A67DJG 6C9 CDC
A67DJG >CEJIH G:FJ>G:H ?D>CI :HI>B6I>DC IDD
.=JH I=:H: ILD H:IH D; :FJ6I>DCH 6G: :HI>B6I:9 ?D>CIAN JH>C< 4:AAC:GSH >I:G6I>K:
B:I=D9 D; :HI>B6I>C< H::B>C<AN JCG:A6I:9 G:<G:HH>DCH
Table 4.10: Regression of output and family owned input differences of mixed
sharecroppers versus pure sharecroppers
variable
flood prone
(51 observations)
drought prone
( 46 observations)
favourable
(95 observations)
irrigated
(55 observations)
loamy_soil
diff_log_rice/ha
0.134
(0.155)
-0.051
(0.155)
0.161
(0.144)
0.060
(0.152)
0.507**
(0.186)
0.463**
(0.180)
0.125**
(0.052)
0.597**
(0.098)
-0.071
(0.054)
0.00003
(0.00004)
-0.062
(0.094)
0.030
(0.035)
-0.045**
(0.018)
diff_labour
0.673
(0.437)
0.258
(0.431)
0.754
(0.423)
0.476
(0.434)
-0.225
(0.480)
0.028
(0.469)
0.133
(0.148)
0.044
(0.283)
-0.081
(0.151)
0.00009
(0.0001)
N
182
182
p-value
0.0000
0.0000
clay_soil
irri_access
rice_m
rice_t
rainfall
diff_cul_area
diff_labour
diff_bullock
diff_bullock
0.404
(0.714)
0.955
(0.704)
0.701
(0.691)
0.958
(0.709)
-0.398
(0.784)
0.145
(0.767)
0.209
(0.242)
-0.222
(0.462)
0.271
(0.246)
0.00004
(0.0002)
** significant in 5% level, * significant in 10% level
Note: all equations control for average rainfall in different districts (64 districts) in 2000 and 2004, dummies for soil type and
dummies for ecosystem: fp- flood prone, dp- draught prone, fav-favourable, ir- irrigated.
The likelihood ratio test for joint independence of the three equations is 0.000. This leads to string rejection of the null hypothesis
that independent estimates provides consistent estimates
,:<G:HH>DC G:HJAIH ;GDB I=: :HI>B6I>DC 6G: H=DLC >C .67A: .=: K:8IDG
D; B:6C 9>Y:G:C8: D; >CI:G8:EI 9JBB>:H >H CDI HI6I>HI>86AAN H><C>P86CI ;DG :>I=:G
I=: DJIEJI :FJ6I>DC DG >CEJI :FJ6I>DC .=>H >C9>86I:H I=6I ;DG 6AA AD86I>DCH I=:
=NEDI=:H>H I=6I I=:G: 6G: CD B>HH>C< >C8:CI>K:H 86CCDI 7: G:?:8I:9 "DL:K:G
JCA>@: I=: PC9>C<H D; 8=6GN6 JH>C< (:E6A:H: 96I6 K6G>67A:H G:EG:H:CI
>C< HD>A FJ6A>IN 6C9 INE:H D; >GG><6I>DC 688:HH 6G: ?D>CIAN H><C>P86CI .=:G:;DG:
I=:H: K6G>67A:H 6EE:6G ID 7: >BEDGI6CI ;DG :MEA6>C>C< I=: EG:H:C8: D; 6CN 9>Y:G
:C8: D; DJIEJI 7:IL::C I=: EJG: I:C6CI 6C9 I=: B>M:9 I:C6CI .=: 8JAI>K6I>DC
D; BD9:GC G>8: K6G>:IN >H EGDK:9 ID 7: 6C >BEDGI6CI ;68IDG >C :MEA6>C>C< DJI
EJI >CI:CH>IN K6G>6I>DC 7:IL::C EJG: 6C9 B>M:9 H=6G:8GDEE>C< =DJH:=DA9H DG
A67DJG 6C9 CDC
A67DJG >CEJIH CDC: D; I=: K6G>67A:H 6G: H><C>P86CI >C9>86I>C<
I=6I I=: 8GDE
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B6>CI6>C 6 HJ7H>HI:C8: A>K>C< 6C9 L>I=DJI 6CN >C8:CI>K: ID >BEGDK: I=:>G :YDGI
43)1:8/43
.=:G: 6G: ILD B6>C =NEDI=:H:H I=6I 86C 7: I:HI:9 :BE>G>86AAN '6GH=6AA>6C
>C:X8>:C8N 6C9 I=: I=G:6I D; :K>8I>DC =NEDI=:H>H .=>H 8=6EI:G I:HI:9 I=:H: ILD
=NEDI=:H:H =6K>C< DEEDH>I: :Y:8IH DC A6C9 EGD9J8I>K>IN DC H=6G:8GDEE:9 A6C9H
8DBE6G: L>I= DLC:G
DE:G6I:9 A6C9 .=: DK:G6AA G:HJAIH >C9>86I: I=6I >C GJG6A
6C<A69:H= I=: H=6G: I:C6CIH 6G: CD A:HH :X8>:CI I=6C I=: DLC:G 8JAI>K6IDGH
"DL:K:G I=:H: 6G: CDI JC:ME:8I:9 PC9>C<H ;GDB 6 HJ7H>HI:C8: :8DCDBN L=:G:
6 A6G<: CJB7:G D; HB6AA ;6GB ;6B>A>:H 6G: 8DBE:I>C< ;DG I:C6C8N 8DCIG68I ID
HJEEA:B:CI >C8DB: ;GDB I=:>G DLC ;6GB
.=:G: >H 8DCH>9:G67A: 8DCIGDK:GHN 7JI 6 H86G8>IN D; :BE>G>86A :K>9:C8: >C
H>6 8DC8:GC>C< I=: >BE68I D; A6C9 G:CI6A B6G@:IH DC I=: 6<G>8JAIJG6A EGD9J8
I>K>IN "DL:K:G I=: 67H:C8: D; '6GH=6AA>6C >C:X8>:C8N >C H=6G: I:C6C8N 9D:H
CDI C:8:HH6G>AN >BEAN I=6I I=: H=6G: 8DCIG68I 86C 7: :C;DG8:9 8DHIA:HHAN >C <:C
:G6A #C GJG6A 6C<A69:H= A>@: B6CN DI=:G 9:K:ADE>C< 8DJCIG>:H L>I= 67JC96CI
6<G>8JAIJG6A A67DJGH ADD@>C< ;DG 6 ;6GB>C< 8DCIG68I >I >H JHJ6AAN 7:86JH: I=DH:
E6GI>8JA6G A6C9ADG9H L=D 69DEI I=: H=6G: 8DCIG68I I:C9 ID 7: I=DH: :FJ>EE:9
L>I= 6 B:8=6C>HB D; 8DCIG68I :C;DG8:B:CI
.=>H HIJ9N 6AHD 8DCH>9:GH 9>Y:G:CI EGD9J8I>DC ;JC8I>DCH ;DG ILD 9>Y:G:CI
<GDJEH D; ;6GB:GH DLC:G 8JAI>K6IDGH 6C9 H=6G: I:C6CIH 9J: ID H:A; H:A:8I>DC
.=: 9>Y:G:C8:H >C I=: EGD9J8I>DC ;JC8I>DC 8D:X8>:CIH 7:IL::C I=: I:C6CI 6C9
I=: DLC:G =DJH:=DA9H >AAJHIG6I: I=: EG:H:C8: D; =:I:GD<:C:>IN >C I=: H6BEA: DG
>CHI6C8: >C I=: EGD9J8I>DC ;JC8I>DC 6BDC< I=: H=6G: I:C6CI ;6GB:GH DJIEJI
E:G =:8I6G: H><C>P86CIAN >C8G:6H:H L>I= I=: CJB7:G D; 7JAAD8@H >C I=: ;6B>AN
6C9 H><C>P86CIAN 9:8G:6H:H L>I= I=: CJB7:G D; ;:B6A: 6<G>8JAIJG6A A67DJG:GH
>C I=: ;6B>AN "DL:K:G ;DG I=: DLC:G ;6GB:GH I=: H>O: D; I=: =DJH:=DA9 6C9
CJB7:G D; B6A: 6<G>8JAIJG6A A67DJG:GH >C I=: ;6B>AN 9:8G:6H:H I=: 8GDE DJIEJI
E:G =:8I6G: L=>A: I=: :ME:G>:C8:9 =DJH:=DA9 =:69 H><C>P86CIAN 8DCIG>7JI:H ID
>C8G:6H:H I=: EGD9J8I>K>IN G:9>I 688:HH ;GDB >C;DGB6A HDJG8:H >C8G:6H:H I=:
EGD9J8I>K>IN D; I=: DLC:G 8JAI>K6IDGH 6AI=DJ<= I=: 8D:X8>:CI ;DG I=>H K6G>67A:
=6H CD H><C>P86CI :Y:8I DC I=: EGD9J8I>K>IN 6BDC< I=: H=6G: I:C6CIH .=:H:
9>Y:G:C8:H >C9>86I: I=6I I=: ;68IDGH D; EGD9J8I>DC =6K: 9>Y:G:CI>6A :Y:8IH DC I=:
6<G>8JAIJG6A EGD9J8I>K>IN ;DG =DJH:=DA9H L=D 8JAI>K6I: JC9:G 6 H=6G:8GDEE>C<
8DCIG68I 8DBE6G:9 ID =DJH:=DA9H L=D 8JAI>K6I:9 I=:>G DLC A6C9 .=:G:;DG:
:BE>G>86A 6C6ANH>H JH>C< 6 EDDA H6BEA: D; 7DI= E6GI>:H ID :HI>B6I: EGD9J8I>DC
;JC8I>DCH B6N HJY:G ;GDB >C8DCH>HI:C8N
CDI=:G 8DCIG>7JI>DC D; I=>H HIJ9N >H I=6I >I 6HH:HH:H I=: :X8>:C8N D; H=6G:
8GDEE>C< 7:IL::C I=: B>M:9
H=6G: I:C6CIH 6C9 I=: EJG:
H=6G: I:C6CIH .=:
G:HJAIH 9D CDI PC9 6CN H><C>P86CI EGD9J8I>K>IN 9>Y:G:C8: 7:IL::C I=: B>M:9
H=6G: I:C6CIH 6C9 I=: EJG:
H=6G: I:C6CIH
.=>H E6E:G 6AHD :K6AJ6I:H I=: EG:H:C8: D; >CEJI 6C9 DJIEJI 9>Y:G:C8:H 7:
IL::C I=: EJG:
H=6G: I:C6CIH 6C9 I=: B>M:9
H=6G: I:C6CIH .=: E6E:G 8DC
IG>7JI:H ID 6C JC9:GHI6C9>C< D; I=: ;68IDGH L=>8= <:C:G6I: 9>Y:G:C8:H >C >CEJI
6C9 DJIEJI >CI:CH>I>:H 68GDHH ILD 8DBE6G6I>K: I:CJG: G:<>B:H .=: 8JAI>K6I>DC
D; BD9:GC G>8: K6G>:IN >H EGDK:9 ID 7: >BEDGI6CI >C :MEA6>C>C< DJIEJI >CI:C
H>IN K6G>6I>DC 7:IL::C EJG: 6C9 B>M:9 H=6G:8GDEE>C< =DJH:=DA9H
DG A67DJG
6C9 CDC
A67DJG >CEJIH CDC: D; I=: K6G>67A:H 6G: H><C>P86CI >C9>86I>C< I=6I I=:
8GDE
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6 HJ7H>HI:C8: A>K>C< 6C9 L>I=DJI 6CN >C8:CI>K: ID >BEGDK: I=:>G :YDGI
.=:H: G:HJAIH 8DCI6>C L>I= 6EEGDEG>6I: 86K:6IH HDB: >BEA>86I>DCH ;DG EDA
>8N G:A6I>C< ID I:CJG: HNHI:BH 1=:C 8GDE
H=6G>C< >H HJ8= 6 K:GH6I>A: EGD9J8I>K:
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Figure. 5.1 Tree for two stages model
No
participation
(Owner
cultivation)
Sharecropping
Lease- out
land
Fixed rent
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Sharecropping
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7N I=: I:C6CI ;6GB:GH
#C 7DI= HI6<:H 9JBB>:H ;DG 9>Y:G:CI <:D<G6E=>86A :8DHNHI:BH HJ8= 6H QDD9
EGDC: 9GDJ<=I EGDC: ;6KDJG67A: :CK>GDCB:CI >GG><6I:9 6C9 HJ7B:G<:C8: 6G:6
HD>A INE:H I>B: 9JBB>:H 6C9 6K:G6<: G6>C;6AA K6G>6I>DCH 6BDC< I=: 9>HIG>8IH
6C9 7:IL::C N:6GH 6G: JH:9 6H 8DCIGDA K6G>67A:H
25/7/)'1 /3*/3-8
'9' '3* +8)7/59/;+ "9'9/89/)8
.=: 96I6 ;DG I=: 6C6ANH>H 6G: 9G6LC ;GDB 6 G:E:6I HJGK:N D; 6 C6I>DC6AAN G:E
G:H:CI6I>K: H6BEA: D; =DJH:=DA9H D; GJG6A 6C<A69:H= 8DAA:8I:9 7N #,,# .=:
7:C8=B6G@ HJGK:N L6H >BEA:B:CI:9 >C ;DG 6 HIJ9N D; I=: >BE68I D;
G>8: G:H:6G8= DC EDK:GIN G:9J8I>DC >C GJG6A 6C<A69:H= HEDCHDG:9 7N I=: #C
I:GC6I>DC6A DD9 *DA>8N ,:H:6G8= #CHI>IJI: BJAI>
HI6<: G6C9DB H6BEA>C<
B:I=D9 L6H ;DAADL:9 ;DG H6BEA: H:A:8I>DC ;GDB JC>DCH >C 9>HIG>8IH DJI
D; 9>HIG>8IH DB>II>C< JG76C 9>HIG>8IH .=:C DC: K>AA6<: L6H H:A:8I:9 ;GDB
:68= JC>DC HJ8= I=6I I=: EDEJA6I>DC 9:CH>IN 6C9 A>I:G68N G6I: ;DG I=: K>AA6<: 6G:
H>B>A6G ID I=DH: ;DG I=: H:A:8I:9 JC>DC I=>H >C;DGB6I>DC L6H 8DAA:8I:9 ;GDB I=:
9>HIG>8I 8:CHJH G:EDGIH
H6BEA: D; ID =DJH:=DA9H ;GDB :68= D; I=: K>AA6<:H =DJH:
=DA9H L6H 9G6LC JH>C< I=: HIG6I>P:9 G6C9DB H6BEA>C< B:I=D9 I I=>H HI6<:
ILD K>AA6<:H L:G: 9GDEE:9 7:86JH: D; I=: AD<>HI>86A EGD7A:BH D; >BEA:B:CI>C<
I=: HJGK:N .=: =DJH:=DA9H L:G: I=:C HIG6I>P:9 >CID :><=I <GDJEH DC I=: 76H>H D;
;DJG A6C9=DA9>C< 6C9 ILD A6C9 I:CJG: 86I:<DG>:H 6C9 =DJH:=DA9H L:G: 9G6LC
6I G6C9DB ;DG :68= K>AA6<: 688DG9>C< ID I=:>G EGD767>A>IN EGDEDGI>DC .=: HIG6I
>P86I>DC L6H 76H:9 DC I=: L:6AI= G6C@>C< I:8=C>FJ: D; I=: E6GI>8>E6IDGN GJG6A
6EEG6>H6A *, B:I=D9
.=: H:8DC9 L6K: L6H 8DC9J8I:9 7N #,,# >C ;DAADL>C< I=: =DJH:=DA9H
>C8AJ9:9 >C I=: PGHI L6K: 6C9 I=:>G 9:H8:C9:CIH .=: H6BEA: H>O: D; =DJH:=DA9H
GDH: ID >C I=: A6HI L6K: DG :68= H:A:8I:9 =DJH:=DA9 EADI
=DJH:=DA9
JC>DC JHJ6AAN 8DCH>HIH D; K>AA6<:H
6C9 8DCIG68I
A:K:A 96I6 L:G: 8DAA:8I:9 :PC>I>DCH D; >BEDGI6CI K6G>67A:H I6@:C
;GDB I=: HJGK:N 96I6 6C9 6G: JH:9 >C I=: :HI>B6I>DC 6C9 6G: G:EDGI:9 >C .67A:
-JBB6GN HI6I>HI>8H D; I=: K6G>67A:H 6G: <>K:C >C .67A: .=: H6BEA: JC>I
JH:9 >C I=: 6C6ANH>H >H >C9>K>9J6A ;6GB:G A:K:A 96I6 .=:G:;DG: I=: JC76A6C8:9
E6C:A 96I6 D; 6C9 8DCH>HIH D; BJAI>EA: D7H:GK6I>DCH ;DG I=: H6B:
=DJH:=DA9H
Table 5.1 Variable definitions
Variable
Description
Selection model dependent variables
d_leasein
Amount of land (ha) lease-in by a HH
d_leaseout
Amount of land (ha) lease-out by a HH
Full model dependent variables
contract_leasein
= 1 if HH sharecropping in the plot; = 0 if HH fixed rent in the plot
contract_leaseout
= 1 if HH sharecropping out the plot; = 0 if HH fixed rent out the plot
Independent variables
HH characteristics variables
selfeco
Compare to the others households
1 =rich; 2= high middle; 3= lower middle; 4=
hhsize
Household (HH) size (number)
total_worker
Total active labour force in a HH (16-60 years) (number)
total_agri_male
Total male agri worker (number)
total_agri_female
Total female agri worker (number)
Socio- economic variables
edu_head
Education of HH head ; =1 if completed primary education; =0
otherwise
healthyp
No. of healthy people in a HH
femaleh
Sex of HH; = 1 if HH head is female; =0 otherwise
age_head
Age of head (number)
prim_occu_head
= 1 if the primary occupation of the head of HH is agriculture; =0
otherwise
cow_pp
Market price of bullocks used in cultivation
credit_formal
credit_informal
asset/ wealth
working capital
non-agri_ income
debt_income
debt_capital
asset_per_capita
Proxies for risk sharing
Amount of credit from formal institutions (tk.)
Amount of credit from informal institutions (tk.)
Amount of own cultivable land + homestead and other types of land
(ha)
Income from trees + fruits + fisheries
Income from trade and service (tk.)
liquidity constraint/ per capita income
liquidity constraint/ working capital
Amount of all land/ no. of adult members in a HH
Table 5.2 Means and standard deviation
Variable
Mean
hhsize
5.53
active_labour
3.19
healthy population
5.14
total_agri_male
1.12
total_agri_female
0.017
cow_no.
1.84
own cultivable land
0.35
rent in
0.34
rent out
0.05
asset(land)_per capita
0.18
working capital
52,485.65
per_capita income
11,806.99
Standard deviation
2.22
1.51
2.14
0.81
0.13
1.91
0.78
0.42
0.64
0.32
10,6088.7
13,800.09
Min.
2
0
0
0
0
0
0
0.012
0
0
0
933.19
Max.
26
14
24
6
1
14
15.43
4.37
14.82
3.17
1,6,01500
21,0252.4
0
100
Frequency
200
300
Figure 5.2 distribution of land ownership group (data from 2000)
2
3
4
5
land_ownership
6
7
0
100
Frequency
200 300
Figure 5.3 distribution of land ownership group (data from 2004)
2
3
4
5
land_ownership
6
7
1= absolute landless; 2= own only homestead; 3 = functionally landless (<=0.20); 4= marginal land owner (0.210.40); 5 = small land owner (0.41-1.00); 6= lower medium land owner (1.01-2.00); 7= upper medium land
owner ( 2.10-3.00)
><JG:H 6C9 >AAJHIG6I: I=: 9>HIG>7JI>DC D; A6C9 6BDC< I=: =DJH:=DA9H
;DG I=: HJGK:N 96I6 >C 6C9 G:HE:8I>K:AN
><JG:H >C9>86I: I=6I I=:
6BDJCI D; A6C9 DLC:9 7N I=: =DJH:=DA9H H=G6C@ 7:IL::C 6C9 .=>H
B6N 7: 9J: I=: HEA>II>C< D; 6HH:IH BDI>K6I:9 7N I=: #C=:G>I6C8: &6L
7+1/2/3'7> ;/*+3)+ ,742 '9'
.67A: EG:H:CIH 6C >C>I>6A 8DBE6G6I>K: HIJ9N D; I=: I=G:: <GDJEH D; ;6GB
:GH CDC
E6GI>8>E6I>C< DLC:G ;6GB:GH I=: A6C9ADG9H 6C9 I=: I:C6CIH
GDB
I=: I67A: E:G8:CI D; I=: =DJH:=DA9H A:6H:
>C A6C9 6C9 E:G8:CI D; I=:
=DJH:=DA9 A:6H:
DJI A6C9 (:6GAN E:G8:CI D; I=: =DJH:=DA9H I6@: E6GI >C
HDB: @>C9 D; A6C9 IG6CH68I>DC I=GDJ<= A6C9 G:CI6A B6G@:IH .=:G:;DG: 6EEGDM
>B6I:AN E:G8:CI D; I=: =DJH:=DA9H 6G: CDI E6GI>8>E6I>C< >C I=: A6C9 G:CI6A
B6G@:I )C: D; I=: :MEA6C6I>DCH ;DG CDC
E6GI>8>E6I>DC >C I=: A6C9 G:CI6A B6G
@:I >H I=: IG6CH68I>DC 8DHI .:@AJ 6C9 &:B> .>@67D 6C9 "DA9:C :AA 6C9 -JHH6C<@6GC H=DL I=6I IG6CH68I>DC 8DHI LDJA9 9G>K: 6 L:9<:
7:IL::C I=: 8DHIH 6C9 I=: 7:C:PIH D; I:C6C8N 6H 6 A6C9ADG9 6C9 6H 6 I:C6CI
(DC
E6GI>8>E6I>DC D; E:G8:CI D; I=: =DJH:=DA9H >C I=: A6C9 G:CI6A B6G@:I
I=:G:;DG: >H 6C >C9>86I>DC D; PM:9 IG6CH68I>DC 8DHIH >C I=: B6G@:I H>C8: >C
GJG6A 6C<A69:H= >I >H =><=AN JCA>@:AN I=6I 6AA CDC
E6GI>8>E6I>C< =DJH:=DA9H
=6K: 6 E:G;:8I 8DB7>C6I>DC D; A6C9 6C9 CDC
A6C9 ;68IDGH ;DG 8GDE 8JAI>K6I>DC
Table 5.3 Differences in farm endowment, socio-economic characteristics and extent of land
transaction by participation status
Variables
Participating households
Non-participating
households
Lease in
mean
Percentage of transacting
Lease out
SD
39.5
mean
SD
14.7
mean
SD
45.8
households
Household size
5.53
2.21
5.51
2.69
5.3
2.42
Healthy population in a HH(no.)
5.13
2.14
4.97
2.67
4.9
2.34
Age of head (year)
45.61
12.36
49.63
14.39
45.62
13.06
Education of head (school year)
2.9
3.56
6.06
4.6
5.6
4.38
Total worker in HH (no.)
1.7
0.99
1.8
0.97
1.8
0.98
Total male agri .worker in HH (no.)
1.21
0.81
0.77
0.88
1.3
0.87
Total female agri .worker in HH (no.)
0.02
0.12
0.03
0.19
0.03
0.17
Cow (no.)
1.84
1.90
1.45
2.54
1.26
1.81
Homestead land (ha)
0.05
0.07
0.08
0.06
0.06
0.04
Garden and fruit area (ha)
0.02
0.06
0.09
0.18
0.03
0.07
Pond land (ha)
0.008
0.03
0.04
0.11
0.02
0.03
Own cultivated area (ha)
0.34
0.78
1.52
1.50
0.58
0.73
Income from goat (tk.)
4.6
57.09
6.15
85.93
12
202.13
Income from poultry (tk.)
414.86
1005.37
503.94
771.41
327.81
510.02
Income from trees and plants (tk.)
1752.89
3175.51
6504.92
18040.4
1848.45
3551.37
Loan amount from formal lending
3,183.37
8,433.59
3,520.4
12009.5
2,807.7
14,095.3
1,188.94
9,062.04
1997.7
12560.7
1665
14,128.72
Per capita income (tk.)
1,1806.9
13,800.1
15978.5
20821.7
11911.5
10,952.7
Annual agri. income (tk.)
3,4231.2
40664.2
36300.6
52891.7
24182.7
29,268.9
Annual agri. wage income (tk.)
3,939.2
7,848.7
1,388.3
5,330.8
3,740.8
10,034.7
institutions (tk.)
Loan amount from informal landing
source (tk.)
.=: HJBB6GN HI6I>HI>8H ;GDB I=: 96I6 EG:H:CI:9 >C .67A: HDB:L=6I 8DC
PGBH I=: 688JBJA6I:9 :K>9:C8: D; I=: EG:K6A:C8: D; >BE:G;:8I>DCH >C B6G@:IH
;DG A67DJG 6C9 CDC
A67DJG :C9DLB:CIH #C GJG6A 6C<A69:H= I=: B6G@:I ;DG
=>G:9 A67DJG ;DG I=: 6<G>8JAIJG6A 68I>K>I>:H >H A6G<:AN B>HH>C< L=>8= >H :K>9:CI
;GDB I=: K:GN ADL B:6C D; I=: 6<G>8JAIJG6A L6<: >C8DB: K6G>67A: .=>H B6N
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I=: I=G:: <GDJEH E:G 86E>I6 >C8DB: >H ADL:HI 6BDC< I=: I:C6CI ;6GB:GH .=:
;6GB:GH G:AN>C< DC =>G:9 A67DJG B6N CDI =6K: 6 <J6G6CI::9 HJEEAN D; HJX8>:CI
Figure 5.4 Correlations between household income and tenancy status
rent_in
rent_out
1000000
1500000
1000000
t_hh_income
500000
l_hh_income
500000
0
400000
0
1000000
t_agri_income
200000
l_agri_income
500000
0
1000000
0
1000000
t_nonagri_income
500000
l_nonagri_income
500000
0
0
100000
100000
t_agri_wage_income
50000
l_agri_wage_income
50000
0
0
0
2
4 0
500000 1000000
0
200000 400000
0
500000 1000000
0
2
4
6 0 500000
1000000
1500000
0
500000 1000000
0
5000001000000
Figure 5.5 Correlations between household wealth, working capital and social connections and tenancy status
rent_in
rent_out
10
10
t_wealth
5
l_wealth
5
0
100000
0
200000
t_working_capital
50000
l_working_capital
100000
0
5
0
5
l_selfeco
t_selfeco
0
1
0
1
t_ngom
.5
l_ngom
.5
0
1
0
1
t_politm
.5
l_politm
.5
0
0
0
2
4 0
5
100
50000
100000
0
50
.5
0
1
2
4
6 0
5
100
100000
200000
0
50
.5
1
A67DJG 9JG>C< E:6@ H:6HDC >C I=: 67H:C8: D; HJX8>:CI DY
;6GB A67DJG DEEDGIJ
C>I>:H .=: H6B: :MEA6C6I>DC >H 6AHD 6EEA>867A: ;DG CDC
A67DJG >CEJIH :HE:8>6AAN
7JAAD8@ EDL:G .=JH ;DG GJG6A 6C<A69:H= ILD >CEJIH DI=:G I=6C A6C9 I=6I 6G:
:HH:CI>6A ;DG 8JAI>K6I>DC 6G: ;6B>AN A67DJG 6C9 9G6;I EDL:G -JBB6GN D; 96I6
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G:CI A6C9 ID B:9>JB A6C9DLC:GH
><JG:H 6C9 EG:H:CI I=: 9>HIG>7JI>DC D; 9>Y:G:CI =DJH:=DA9HS L:6AI=
6C9 DY
;6GB >C8DB:H 6BDC< I=: I:C6CIH 6C9 I=: A6C9ADG9H 6C9 I=:>G 8DGG:A6
I>DCH DGG:A6I>DCH 8A:6GAN H=DL I=6I I:C6CISH >C8DB: >C8G:6H:H L>I= G:CI>C<
A6C9
DG 7DI= I=: I:C6CI 6C9 I=: A6C9ADG9 =DJH:=DA9 I=: 6<G>8JAIJG6A L6<:
>C8DB: =6H 6 EDH>I>K: G:A6I>DCH=>E L>I= =DJH:=DA9 >C8DB: "DL:K:G I=:G:
6G: CD H><C>P86CI 8DGG:A6I>DCH 7:IL::C L:6AI= 6C9 HD8>6A 8DCC:8I>DC 650)1/
6521.+6/ .50)1/ .521.+6/ K6G>67A:H 6C9 E6GI>8>E6I>DC >C I=: I:C6C8N B6G
@:I 7N I=: I:C6CI DG I=: A6C9ADG9 #I >H I=JH >CI:G:HI>C< ID PC9 L=:I=:G I=>H
6HHD8>6I>DC =DA9H I=GDJ<= I=: :8DCDB:IG>8 BD9:AH
:;DG: H:II>C< DY ID :HI>B6I: I=: BD9>P:9 ":8@B6C H:A:8I>DC BD9:A >I >H
LDGI= ADD@>C< 6I I=: 9>HIG>7JI>DC D; ILD INE:H D; 8DCIG68IH H=6G:8GDEE>C< 6C9
PM:9
G:CI >C GJG6A 6C<A69:H= G:EG:H:CI:9 7N I=: HJGK:N 96I6 JH:9 =:G: .=:H:
9>HIG>7JI>DCH 6G: H=DLC >C ><JG: 0
0
1
Density
1
Density
2
2
Figure 5.6 Distribution of different contract choice between tenants and landlords
2
3
share_out
1
2
3
2
3
fixed_out
0
0
1
Density
1
Density
2
2
1
1
2
3
share_in
1
fixed_in
><JG: G:K:6AH I=6I A>@: BDHI D; 9:K:ADE>C< 8DJCIG>:H A6C9 IG6CH68I>DCH
I=GDJ<= I=: I:C6C8N B6G@:I >C GJG6A 6C<A69:H= 6G: K:GN BJ8= H@:L:9 -B6AA
E>:8:H D; A6C9 6G: 8JAI>K6I:9 I=GDJ<= I=: I:C6C8N B:8=6C>HB .=: A6C9ADG9H
6G: DY:G:9 6ABDHI I=: H6B: H>O: D; A6C9 ;DG 7DI= 8DCIG68IH L=>A: ;DG I=: I:C6CI
;6GB:GH I=: 6K:G6<: H>O: D; A6C9 8=DH:C ;DG I=: PM:9
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L:AA 6H 6 B:8=6C>HB ID 6AAD86I: ;68IDGH 6I I=: ;6GBA:K:A ID B6M>B>O: L:A;6G:
8DCH>HI:CI L>I= I=: PC9>C<H D; .6HA>B ":C8: I=:G: B6N 7: DI=:G ;68IDGH
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!+8:198
!/80".'7/3- 4*+1
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A:K:A JC76A6C8:9
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H=6G>C< =NEDI=:H>H ILD
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I=: A6C9ADG9HS 8G:9>I L:6AI= 6C9 LDG@>C< 86E>I6A B:6HJG:H 'D9:A ;D8JH:H
BDG: DC >C9>G:8I 86A8JA6I:9 B:6HJG:H D; 8G:9>I L:6AI= 6C9 LDG@>C< 86E>I6A D;
I=: ILD <GDJEH
#+3'39A8 ":("'251+
.67A:H 6C9 G:EDGI I=: G:HJAIH D; I=: BD9>P:9 ":8@B6C BD9:A L=>8=
9:6AH L>I= I=: I:C6CI =DJH:=DA9SH 9:8>H>DC ID E6GI>8>E6I: 6C9 8=DDH: 6 HE:8>P8
8DCIG68I G:HE:8I>K:AN
.=: :HI>B6I:9 G:HJAIH D; I=: PGHI HI6<: .67A: G:K:6A I=6I I=: ;6GB
:GHS A>@:A>=DD9 D; E6GI>8>E6I>C< >C I=: A6C9 I:C6C8N B6G@:I 9:8G:6H:H L>I= I=:
6BDJCI D; 6CN @>C9 D; A6C9 6HH:I I=:N DLC .=>H HJEEDGIH I=: ;68I I=6I >C
GJG6A 6C<A69:H= A>@: :AH:L=:G: ;DG ;6GB:GH L>I= CD 688:HH ID A6C9 I=: BDI>
K6I>DC ID E6GI>8>E6I: >H H>BEAN ID 68FJ>G: A6C9 ;DG 8JAI>K6I>DC >C I=: 67H:C8: D;
6 ;JC8I>DC6A A6C9 H6A:H B6G@:I (DC: D; I=: EGDM>:H ;DG G:H:GK6I>DC >C8DB: =6H
6CN H><C>P86CI >BE68I DC I=: E6GI>8>E6I>DC 9:8>H>DC .=>H B><=I 7: 6C >C9>86
I>DC D; I=: EG:H:C8: D; >CHJX8>:CI HDJG8:H D; L6<: A67DJG 6C9 CDC
6<G>8JAIJG6A
:BEADNB:CI DEEDGIJC>I>:H ;DG I=: A6G<: ;6GB>C< EDEJA6I>DC >C GJG6A 6C<A69:H=
.=: DI=:G I=G:: K6G>67A:H I=6I =6K: 6 H><C>P86CI >BE68I DC I=: 6BDJCI D;
A6C9 6 I:C6CI ;6GB:G A:6H:H
>C 6G: =DJH:=DA9 H>O: CJB7:G D; B6A: 6<G>8JAIJG6A
LDG@:GH >C I=: ;6B>AN 6C9 688:HH ID :A:8IG>8>IN BDC< I=:H: I=G:: K6G>67A:H
I=: PGHI ILD =6K: 6 EDH>I>K: >BE68I 6C9 I=: A6HI DC: =6H 6 C:<6I>K: >BE68I
6H :ME:8I:9 .=:G:;DG: 6 I:C6CI =DJH:=DA9 L>I= BDG: B:B7:GH 6C9 BDG:
B6A: 6<G>8JAIJG6A LDG@:GH L>AA A:6H:
>C BDG: A6C9 I=6C I=: =DJH:=DA9 I=6I =6H
;:L:G B:B7:GH DG B6A: LDG@:GH 9:CDI>C< I=: A67DJG
>CI:CH>K: C6IJG: D; I=:
6<G>8JAIJG6A H:8IDG >C 6C<A69:H= H I=: A:K:A D; HD8>6A L:A;6G: >C8G:6H:H L=>8=
>H 8=6G68I:G>O:9 7N 688:HH ID :A:8IG>8>IN I=: I:C6CI H><C>P86CIAN G:9J8:H =>H G6I:
D; E6GI>8>E6I>DC >C I=: A6C9
A:6H: B6G@:I
Table 5.4: Stage 1: Estimated risk sharing model: Selection equation (tenant sub-sample)
variables
HH decision of leasing in land
Model 1
credit_formal
credit_informal
assest
working capital
non-agri_income
0.00002
(0.00001)
-2.09e-06
(9.92e-06)
-22.414*
(1.689)
3.46e-06
(5.41e-06)
-1.47e-06
(2.06e-06)
debt_capital
asset_percapita
hhsize
selfeco
depen_ratio
agri_labour_male
agri_labour_female
bullock
electricity
0.189*
(0.075)
-0.141
(0.135)
-0.902
(0.591)
0.498*
(0.141)
-1.545*
(0.696)
0.00004
(0.00002)
-0.469*
(0.214)
Model 2
0.00001**
(8.21e-06)
2.33e-06
(0.00001)
-38.283*
(5.489)
0.098
(0.102)
-0.213
(0.214)
-1.611
(1.169)
1.116*
(0.247)
-5.135
(21.830)
-1.35e-06
(0.00003)
-0.686*
(0.278)
* : significance in 95% confidence interval ; ** significance in 90% confidence interval
The regression also include average rainfall in different year and different districts and dummies for different ecosystem
(flood prone, draught prone, irrigated, favourable)and soil type (loamy and clay) as control variables; S.E. are in parenthesis
.67A: 9:6AH DCAN L>I= I=: I:C6CI ;6GB:GH L=D 8=DDH: ID E6GI>8>E6I: >C
I=: A6C9
A:6H: B6G@:I 6C9 8=DDH: 7:IL::C 8GDE
H=6G: 8DCIG68IH K:GHJH PM:9
G:CI 8DCIG68IH ->B>A6G ID I=: H:A:8I>DC :FJ6I>DC ;DG I=: :HI>B6I>DC D; I=:
8DCIG68I 8=D>8: DG DJI8DB: :FJ6I>DC I=>H HIJ9N EG:H:CIH ILD BD9:AH ID D7H:GK:
I=: :Y:8IH D; EGDM>:H D; G>H@ 6K:GH:C:HH DC 8DCIG68I 8=D>8: H :FJ6I>DC >AAJHIG6I:9 I=: I:C6CISH DEI>B>O6I>DC EGD7A:B >CKDAK:H I=: B6G<>C6A JI>A>IN D;
>C8DB: ;GDB 8DCIG68I ;6GB>C< L=>8= 9:E:C9H CDI DCAN DC =>H DLC PC6C8>6A
HIG:C<I= 7JI 6AHD I=: A6C9ADG9SH PC6C8>6A HIG:C<I= L=:G: I=:G: >H 6 >HHJ: D; 8DHI
H=6G: 6C9 8GDEH=6G:
.=: 8D:X8>:CIH D; I=: K6G>67A:H G:EG:H:CI>C< I=:H: ILD BD9:AH <>K: HDB:
8DCIG69>8IDGN PC9>C<H 'D9:A L=>8= :BEADNH 6AA 9>G:8I B:6HJG:H D; 8G:9>I
L:6AI= 6C9 LDG@>C< 86E>I6A 9D:H CDI H=DL 6CN H><C>P86CI >BE68I D; I=:H: EGDM>:H
;DG G>H@ 6K:GH>DC DC I=: 8=D>8: D; 8DCIG68I #C BD9:A 6H 6CI>8>E6I:9 BDK>C<
;GDB G>8= ID EDDG 5'.( '%1 >C8G:6H:H I=: EG:K6A:C8: D; 8=D>8: IDL6G9H 8GDE
H=6G:
8DCIG68IH .=JH BDG: G>H@
6K:GH: I:C6CIH 8=DDH: BDG: H=6G: I:C6C8N 8DCIG68IH
"DL:K:G 8DCIG6GN ID I=: =NEDI=:H>O:9 DJI8DB: HIG:C<I=:C>C< I=: I:C6CIHS
EDH>I>DC >C I:GBH D; 6HH:IH E:G 86E>I6 6AHD B6@:H 6 8GDE
H=6G: 8DCIG68I BDG:
A>@:AN .=>H B6N 7: 9J: ID I=: ;68I I=6I ;6GB:GH L=D =6K: HDB: A6C9 7JI HI>AA
8=DDH: ID E6GI>8>E6I: >C I=: A6C9
A:6H: B6G@:I C::9 ID :BEADN I=:>G 6K6>A67A:
LDG@:GH ID ;6GB I=:>G DLC A6C9 I I=: H6B: I>B: I=:N 8=DDH: ID :MEAD>I
DI=:G E:DEA:SH A6C9 ID DEI>B>O: I=:>G DE:G6I>DC6A A6C9 H>O: .=>H B6N >C8G:6H:
I=:>G E:G8:EI>DC D; G>H@H >CKDAK:9 L>I= 8DCIG68I ;6GB>C< 6C9 HD H=6G:8GDEE>C<
8JAI>K6I>DC 7:8DB:H I=:>G EG>B6GN 8=D>8: D; ;6GB>C< (DI: I=6I CDC: D; I=:
A6C9ADG9SH PC6C8>6A HIG:C<I= K6G>67A:H 6G: H><C>P86CI ;DG 6CN BD9:A #I 6<6>C
HJ<<:HIH I=6I L=:C I=: I:C6CI ;6GB:GH 6G: 9:8>9>C< DK:G 6 I:C6C8N 8DCIG68I
G>H@
H=6G>C< 7:IL::C I=: I:C6CI 6C9 I=: A6C9ADG9 9D:H CDI EA6N 6 H><C>P86CI
GDA:
Table 5.5 Stage 2: Estimated risk sharing model: Outcome equation (tenant sub-sample)
variables
Tenant farming households
Contract choice: 1 if share contract, 0 if
fixed rent contract
Model 1
t_credit_formal
t_credit_informal
t_assest
t_working capital
t_non-agri_income
5.21e-06
(5.46e-06)
0.00001
(0.00001)
1.607
(1.089)
4.54e-06
(2.14e-06)
-5.21e-07
(4.50e-06)
t_debt_capital
t_debt_income
t_asset_percapita
t_hhsize
t_selfeco
t_depen_ratio
l_credit_formal
l_credit_informal
l_assest
l_ working capital
l_non-agri_income
Contract choice: 1 if share contract, 0 if
fixed rent contract
Model 2
0.005
(0.015)
0.034
(0.035)
-0.019
(0.137)
-1.55e-06
(7.07e-06)
-7.63e-07
(0.00001)
0.346
(1.464)
-6.25e-06
(3.26e-06)
-9.38e-06
(2.42e-06)
l_debt_capital
-0.010
(0.024)
0.029
(0.028)
3.084**
(1.764)
0.017
(0.018)
0.072**
(0.043)
0.064
(0.281)
-0.059
(0.123)
0.075
(0.076)
-1.390
(2.074)
l_debt_income
l_asset_percapita
Inverse Mills ratio
rho
sigma
Wald chi2
No of observations
-0.095
-0.300
0.319
1557.29 (25)
-0.142
-0.461
0.308
791.33 (20)
* : significance in 95% confidence interval ; ** significance in 90% confidence interval
The regression also includes male, female agricultural labour force information, bullock power variable, average rainfall in
different year and different districts and dummies for different ecosystem (flood prone, draught prone, irrigated,
favourable)and soil type (loamy and clay) as control variables; S.E. are in parenthesis
#C 699>I>DC ID I=: ILD :FJ6I>DCH I=: ":8@B6C BD9:A :HI>B6I:H G=D H=DLC
>C I=: ADL:G E6GI D; .67A: .=>H >H I=: 8DGG:A6I>DCH D; I=: G:H>9J6AH 6C9
H><B6 I=: AD< D; H><B6 6C9 I=: HI6C96G9 :GGDG D; I=: G:H>9J6AH D; I=: DJI8DB:
:FJ6I>DC .=: >CK:GH: '>AAH G6I>D >H I=: 4*1 5+)/# DG I=: I:C6CI HJ7
H6BEA:
6H >I >H :K>9:CI ;GDB I=: .67A: I=6I ;DG 7DI= BD9:A G=D >H 9>Y:G:CI ;GDB O:GD
>C9>86I:H I=: EG:H:C8: D; H6BEA: H:A:8I>DC 7>6H >C I=: 96I6 H:I .=:G:;DG: ;DG
I=: I:C6CI HJ7
H6BEA: I=: ILD 9:8>H>DCH ID E6GI>8>E6I: >C I=: I:C6C8N B6G@:I
6H 6 I:C6CI ;6GB:G 6C9 I=:C ID 8=DDH: 6 8DCIG68I 7:IL::C I=: H=6G:8GDEE>C<
8DCIG68I 6C9 I=: PM:9
G:CI 8DCIG68I 6G: I6@:C H>BJAI6C:DJHAN >C I=: G:6A LDGA9
'3*147*A8 ":("'251+
.67A: H=DLH G:HJAIH ;GDB I=: PGHI HI6<: D; I=: ":8@B6C ILD
HI6<: BD9:A
L=:G: I=: 6BDJCI D; A6C9 A:6H:9 DJI >H 6 8DCI>CJDJH K6G>67A: DCIGDAA>C< ;DG
DI=:G :MEA6C6IDGN K6G>67A:H >C BD9:A A6C9 A:6H:9 DJI >H EDH>I>K:AN G:A6I:9
ID I=: IDI6A A6C9 6HH:I DLC:9 6C9 I=: CJB7:G D; ;:B6A: 6<G>8JAIJG6A A67DJG:GH
>C 6 =DJH:=DA9 N 8DCIG6HI >I >H C:<6I>K:AN G:A6I:9 ID I=: CDC
6<G>8JAIJG6A
>C8DB: 6C9 I=:>G H:A; :8DCDB>8 :K6AJ6I>DC .=>H G:HJAI B6N HJ<<:HI I=6I A6C9
EDDG ;6GB:GH 6C9 ;6GB:GH L>I= I=: 86E67>A>IN D; H=>;I>C< ID I=: CDC
6<G>8JAIJG6A
H:8IDG ;68: =><= DEEDGIJC>IN 8DHI ID E6GI>8>E6I: >C I=: I:C6C8N B6G@:I 'D9:A
L=>8= >C8AJ9:H >C9>G:8I B:6HJG:H D; L:6AI= 6C9 LDG@>C< 86E>I6A H=DLH I=6I
6H 6CI>8>E6I:9 ;6GB:GH L>I= A6G<: =DJH:=DA9H I=JH L>I= =><= DEEDGIJC>IN 8DHI
>C E6GI>8>E6I>C< 6C9 L>I= BDG: B6A: 6<G>8JAIJG6A LDG@:GH I=JH L>I= ADL DE
EDGIJC>IN 8DHI A:6H:
DJI 6 A:HH:G 6BDJCI D; A6C9 ID DI=:GH #C BD9:A I=:
DEEDGIJC>IN 8DHI =NEDI=:H>H >H 6AHD HJEEDGI:9 7N I=: C:<6I>K: H><C>P86CI :Y:8I
D; I=: A6C9ADG9SH 9:7I ID 86E>I6A G6I>D DC I=: 9:8>H>DC ID E6GI>8>E6I: 6AI=DJ<=
I=: 8D:X8>:CI >H K:GN HB6AA HJEEDGI>C< I=: ;68I I=6I BDHI D; I=: A6C9ADG9H >C
GJG6A 6C<A69:H= B6N CDI 7: K:GN 86E>I6A G>8=
Table 5.6 Stage 1: Estimated risk sharing model: Selection equation (landlord sub-sample)
variables
HH decision of leasing out land
Model 1
credit_formal
credit_informal
assest
working capital
non-agri_income
-2.93e-06
(3.85e-06)
-1.90e-06
(2.83e-06)
0.145*
(0.061)
7.93e-06
(5.18e-06)
-1.13e-06*
(5.72e-06)
debt_capital
asset_percapita
hhsize
selfeco
depen_ratio
agri_labour_male
agri_labour_female
bullock
electricity
-0.013
(0.022)
-0.570*
(0.043)
-0.147
(0.172)
-0.202*
(0.048)
0.498*
(0.166)
-0.00002*
(5.29e-06)
-0.197*
(0.071)
Model 2
-1.06e-06
(9.88e-06)
-0.00001*
(3.95e-06)
-2.184*
(0.239)
-0.116*
(0.035)
-0.288*
(0.069)
0.256
(0.372)
-0.399*
(0.079)
-0.046
(0.263)
-0.00001
(8.74e-06)
-0.209**
(0.104)
* : significance in 95% confidence interval ; ** significance in 90% confidence interval
The regression also include average rainfall in different years and different districts and dummies for different ecosystems
(flood prone, drought prone, irrigated, favourable) and soil type (loamy and clay) as control variables; S.E. are in
parenthesis
->B>A6G ID I=: PC9>C< ;DG I=: I:C6CI ;6GB:GH I=: H:8DC9 HI6<:H D; BD9:AH 6C9 ;D8JH>C< DC I=: A6C9ADG9SH 8DCIG68I 8=D>8: EGD7A:B 9D CDI =6K: BJ8= HJE
EDGI ;DG I=: G>H@
H=6G>C< =NEDI=:H>H .67A: ,:HJAIH HJ<<:HI I=6I 6BDC<
I=: ;6GB:GH L=D 9D E6GI>8>E6I: I=: EGD767>A>IN D; 8=DDH>C< 6 H=6G: 8DCIG68I
9:8G:6H:H L>I= I=:>G DLC :8DCDB>8 :K6AJ6I>DC 6H 7:>C< EDDG L=>8= H=DJA9 6AHD
B6@: I=:B BDG: G>H@ 6K:GH: #C BD9:A I=: I:C6CISH 688:HH ID 8G:9>I ;GDB
>C;DGB6A HDJG8:H =6H 6 H><C>P86CI EDH>I>K: :Y:8I DC I=: A>@:A>=DD9 D; DY:G>C< 6
PM:9
G:CI 8DCIG68I .=: K6AJ: D; I=: 8D:X8>:CI >H K:GN HB6AA HJ<<:HI>C< I=6I
DCAN ;:L I:C6CIH =6K: 688:HH ID 6 HJX8>:CI 6BDJCI D; 8G:9>I ;GDB >C;DGB6A
HDJG8:H I=6I >H C::9:9 ;DG I=: 8JAI>K6I>DC EGD8:HH E6GI ;GDB I=:H: ILD K6G>
67A:H CDC: D; I=: 8D:X8>:CIH D; I=: EGDM>:H ;DG G>H@ 6K:GH:C:HH DG G>H@
H=6G>C<
K6G>67A:H =6K: 6CN H><C>P86CI :Y:8I DC I=: 9:8>H>DC ID 8=DDH: 6 E6GI>8JA6G 8DC
IG68I .=:G:;DG: :K:C ;DG I=: A6C9ADG9HS >C GJG6A 6C<A69:H= G>H@
H=6G>C< B6N
CDI 7: 6C >BEDGI6CI >HHJ: L=:C 6I I=: 7:<>CC>C< D; I=: 8GDEE>C< H:6HDC I=:N
DY:G 6 E6GI>8JA6G 8DCIG68I ID I=: I:C6CI ;6GB:GH
Table 5.7 Stage 2: Estimated risk sharing model: Outcome equation (landlord sub-sample)
variables
landlord farming households
Contract choice: 1 if share contract, 0 if
fixed rent contract
Model 1
l_credit_formal
l_credit_informal
l_assest
l_working capital
l_non-agri_income
8.35e-06
(2.48e-06)
2.33e-06
(1.86e-06)
-0.023
(0.039)
3.79e-06
(3.05e-06)
-3.85e-07
(3.49e-06)
l_debt_capital
l_debt_income
l_asset_percapita
l_hhsize
l_selfeco
l_depen_ratio
l_agi_male
t_credit_formal
t_credit_informal
t_assest
t_ working capital
t_non-agri_income
-0.002
(0.010)
-0.068
(0.094)
0.041
(0.095)
-0.090*
(0.040)
-1.20e-06
(4.58e-06)
-8.86e-07**
(5.47e-06)
-0.083
(0.075)
-3.62e-06
(7.28e-06)
1.85e-06
(1.33e-06)
t_debt_capital
0.002
(0.002)
0.004
(0.029)
0.025
(0.043)
0.011
(0.014)
-0.071**
(0.040)
0.245
(0.180)
-0.125*
(0.042)
0.079
(0.128)
-0.076
(0.056)
-0.122
(0.079)
t_debt_income
t_asset_percapita
Inverse Mills ratio
rho
sigma
Wald chi2
No of observations
Contract choice: 1 if share contract, 0 if
fixed rent contract
Model 2
-0.044
-0.098
0.449
274.02 (25)
526
-0.020
-0.046
0.436
223.83 (20)
526
* : significance in 95% confidence interval ; ** significance in 90% confidence interval
The regression also include male, female agricultural labour force information, bullock power variable, average rainfall in
different year and different districts and dummies for different ecosystem (flood prone, drought prone, irrigated,
favourable) and soil type (loamy and clay) as control variables; S.E. are in parenthesis
.=: 8DGG:A6I>DC 8D:X8>:CI 4*1 ;DG I=: A6C9ADG9 <GDJE >H 6AHD 9>Y:G:CI ;GDB
O:GD 6C9 C:<6I>K: HJ<<:HI>C< I=6I ;DG I=: A6C9ADG9 HJ7
H6BEA: I=: ILD 9:8>H>DCH
ID E6GI>8>E6I: >C I=: I:C6C8N B6G@:I 6C9 I=:C ID DY:G 6 8DCIG68I 7:IL::C I=:
H=6G:8GDEE>C< 8DCIG68I 6C9 I=: PM:9
G:CI 8DCIG68I 6G: I6@:C H>BJAI6C:DJHAN
.67A: 43/947/3-
74(1+247'1 '?'7* 4*+1
.67A:H ID G:EDGI I=: 8D:X8>:CI :HI>B6I:H ;DG I=: BDG6A =6O6G9 BD9:A
L>I= 6HNBEIDI>8 HI6C96G9 :GGDGH G:EDGI:9 >C I=: E6G:CI=:H:H "DJH:=DA9
HE:8>P8
K6G>67A:H 6G: JI>A>O:9 ID I:HI I=: BDG6A =6O6G9 EGD7A:B
#+3'39A8 ":("'251+
GDB I=: E6GI>8>E6I>DC :FJ6I>DC .67A: >I >H :K>9:CI I=6I I=: 6<: D; I=:
E:DEA: >C I=: =DJH:=DA9 =6H 6 H><C>P86CI CDC
A>C:6G G:A6I>DC L>I= I=: 9:8>H>DC
ID E6GI>8>E6I: .=: C:<6I>K: :Y:8I D; 6<: 6C9 6 EDH>I>K: :Y:8I DC 6<: HFJ6G:9
B:6CH I=6I 6H I:C6CI ;6GB:GH <:I DA9:G I=: :Y:8I D; 6<: DC E6GI>8>E6I>DC >H
A:HH:C:9 .=: EG:H:C8: D; HD8>6A 8DCC:8I>DC C<D5B:B7:GH=>E =6H 6 EDH>I>K:
H><C>P86CI :Y:8I DC I=: 6BDJCI D; A6C9 6G: I:C6CIH L>AA>C< ID A:6H:
>C 6H >I >H
6HHJB:9 I=6I 6CN HD8>6A 8DCC:8I>DC L>AA G:9J8: I=: DEEDGIJC>IN 8DHI 6C9 BDG6A
=6O6G9 EGD7A:B
JGI=:GBDG: A>@: I=: G>H@
H=6G>C< BD9:A 6 =><=:G CJB7:G D;
;:B6A: 6<G>8JAIJG6A LDG@:GH 8DBE6G:9 L>I= I=: CJB7:G D; B6A: LDG@:GH >C 6
=DJH:=DA9 9:8G:6H: I=: 6BDJCI D; A6C9 6 =DJH:=DA9 L6CIH ID A:6H:
>C I=:G:7N
G:Q:8I>C< I=: <:C9:G 9>H8G>B>C6I>DC >C I=: 6<G>8JAIJG6A A6C9 I:C6C8N B6G@:I
Table 5.8 Stage 1: Moral hazard model: Selection equation (tenant sub-sample)
variables
HH decision of leasing in land
age_head
-0.057*
(0.019)
0.0006*
(0.0002)
-0.101
(0.221)
0.076
(0.059)
0.091
(0.106)
-0.006
(0.005)
0.283*
(0.086)
0.004
(0.061)
0.018
(0.063)
-0.204
(0.252)
0.065
(0.072)
-0.785*
(0.386)
0.00001
(5.17e-06)
-0.141**
(0.087)
Model 1
age_head2
female_head
healthy_popu
primary_occup_head
edu_active_labour
ngo_membership
hhsize
selfeco
depen_ratio
agri_labour_male
agri_labour_female
bullock
electricity
* : significance in 95% confidence interval ; ** significance in 90% confidence interval
The regression also include average rainfall in different years and different districts and dummies for different ecosystem
(flood prone, draught prone, irrigated, favourable)and soil type (loamy and clay) as control variables; S.E. are in parenthesis
-I6<: .67A: D; I=: DJI8DB: :FJ6I>DC 9:6A>C< L>I= 8=D>8: D; 8DCIG68I
7N I=: I:C6CI ;6GB:GH H=DLH HIGDC< HJEEDGI ;DG I=: EG:H:C8: D; I=: BDG6A =6O6G9
EGD7A:B H EG:9>8I:9 ;GDB .67A: >I >H :K>9:CI I=6I 6 =DJH:=DA9 L>I= 6
;:B6A: =:69 ;68:H I=: BDG6A =6O6G9 EGD7A:B L=>8= 9:8G:6H:H I=: A>@:A>=DD9
D; 8=DDH>C< 6 H=6G:8GDEE>C< 8DCIG68I )EEDH>I: H><C>P86CI :Y:8IH 6G: :K>9:CI
;DG I=: H>O: D; I=: =DJH:=DA9 6C9 CJB7:G D; =:6AI=N E:DEA: >C I=: =DJH:=DA9
DI= D; I=:H: 8=6G68I:G>HI>8H G:9J8: I=: BDG6A =6O6G9 EGD7A:B L>I=>C 6 I:C6CI
=DJH:=DA9
Table 5.9 Stage 2: Moral hazard model: Outcome equation (tenant sub-sample)
variables
Tenant farming households
Contract choice: 1 if share contract, 0 if fixed rent contract
t_age_head
0.013
(0.008)
-0.0001
(0.00009)
-0.344*
(0.134)
-0.046**
(0.026)
0.054
(0.047)
-0.002
(0.002)
-0.021
(0.037)
0.043**
(0.026)
0.077
(0.111)
-0.007
(0.009)
0.00007
(0.0001)
0.443
(0.293)
0.192*
(0.106)
0.633
(0.161)
-0.159
(0.101)
0.034
t_age_head2
t_female_head
t_healthy_popu
t_primary_occup_head
t_edu_active_labour
t_ngo_membership
t_hhsize
t_depen_ratio
l_age_head
l_age_head2
l_female_head
l_healthy_popu
l_primary_occup_head
l_hhsize
Inverse Mills ratio
rho
0.079
sigma
0.429
Wald chi2
958.53 (26)
No. of observations
595
* significance in 95% confidence interval ; ** significance in 90% confidence interval
The regression also include male, female agricultural labour force information, bullock power variable, average rainfall in
different years and different districts and dummies for different ecosystem (flood prone, drought prone, irrigated,
favourable)and soil type (loamy and clay) as control variables; S.E. are in parenthesis
'3*147*A8 ":("'251+
.67A: 9:6AH L>I= I=: BDC>IDG>C< EGD7A:B D; ;6GB:GH L=D L>H= ID E6GI>8
>E6I: >C I=: A6C9 B6G@:I I=GDJ<= A:6H>C< DJI A6C9 *6GI>8>E6I>DC >C I=: >C;DGB6A
A6C9 B6G@:I >H EDH>I>K:AN 8DGG:A6I:9 L>I= ;:B6A: =:69:9 =DJH:=DA9H #C BDHI
D; I=: 9:K:ADE>C< 8DJCIG>:H I=: 6<G>8JAIJG6A D88JE6I>DCH 6G: B6A:
9DB>C6I:9
.=JH >I >H EG:9>8I:9 I=6I 6 =DJH:=DA9 EG>B6G>AN GJC 7N 6 ;:B6A: LDJA9 ;68:
6 BDC>IDG>C< EGD7A:B L>I= B6C6<>C< ;6B>AN A67DJG >C ;6GB>C< .=>H LDJA9
:C=6C8: I=: G6I: D; A6C9 A:6H:9 DJI ID DI=:GH ;DG 8JAI>K6I>DC
.=: 6BDJCI D; A6C9 A:6H:9 DJI 9:8G:6H:H L>I= I=: >C8G:6H>C< CJB7:G D;
:9J86I:9 =:6AI=N E:DEA: >C I=: =DJH:=DA9 ID<:I=:G L>I= I=: >C8G:6H>C< CJB7:G
D; 6<G>8JAIJG6A B6A: B:B7:GH 6C9 7JAAD8@H JH:9 >C 8GDE 8JAI>K6I>DC .=: H><CH
D; I=: 8D:X8>:CIH 6G: 8DCH>HI:CI L>I= L=6I L: :ME:8I 6GB =DJH:=DA9H >C GJG6A
6C<A69:H= 6G: BDG: A>@:AN ID IG6CH68I >C I=: A6C9 B6G@:I L=:G: I=:N 6G: CDI
67A: ID DE:G6I: >I 7N I=:BH:AK:H #C 699>I>DC .67A: H=DLH I=6I A6C9
G>8=
;6GB:GH 6G: ?D>C>C< >C I=: A6C9
A:6H: B6G@:I BDG: I=6C I=: A6C9
EDDG ;6GB:GH
.=:G:;DG: >I 86C 7: H6>9 I=6I >C GJG6A 6C<A69:H= A6C9
EDDG ;6GB:GH DEI>B>O:
I=:>G 6BDJCI D; A6C9 ;DG 8JAI>K6I>DC I=GDJ<= A:6H>C< >C A6C9 L=:G: A6C9
G>8=
;6GB:GH DEI>B>O: I=:>G 6BDJCI D; 8JAI>K67A: A6C9 7N A:6H>C< DJI I=: G:HI
Table 5.10 Stage 1: Moral hazard model: Selection equation (landlord sub-sample)
variables
HH decision of leasing out land
Model 1
age_head
age_head2
female_head
healthy_popu
primary_occup_head
edu_active_labour
ngo_membership
selfeco
depen_ratio
agri_labour_male
agri_labour_female
bullock
electricity
0.016
(0.017)
-0.00008
(0.0002)
0.087*
(0.038)
-0.104*
(0.034)
0.048
(0.091)
-0.154*
(0.052)
-0.109
(0.084)
-0.254*
(0.049)
-0.335**
(0.196)
-0.142*
(0.059)
0.074
(0.201)
-0.00002*
(4.36e-06)
-0.176*
(0.075)
* significance in 95% confidence interval ; ** significance in 90% confidence interval
The regression also include average rainfall in different years and different districts and dummies for different ecosystems
(flood prone, drought prone, irrigated, favourable)and soil type (loamy and clay) as control variables; S.E. are in parenthesis
.=: G:HJAIH D; I=: 8DCIG68I 8=D>8: 9:8>H>DC ;D8JH:9 DC I=: BDG6A =6O6G9
EGD7A:B D; I=: A6C9ADG9 ;6GB:GH 6G: EG:H:CI:9 >C .67A: %::E>C< DI=:G
;68IDGH 8DCHI6CI I=: A6C9ADG9H L=DH: EG>B6GN D88JE6I>DC >H CDI 6<G>8JAIJG:
6G: BDG: A>@:AN ID DY:G PM:9
G:CI 8DCIG68IH H I=: =DJH:=DA9SH =:69 EG>B6GN
D88JE6I>DC H=>;IH ;GDB 6<G>8JAIJG: ID CDC
6<G>8JAIJG: I=: BDC>IDG>C< 8DHI I:C9H
ID >C8G:6H: .=>H >C8G:6H:H I=: >C8:CI>K: ;DG I=: A6C9ADG9H ID DY:G PM:9
G:CI
8DCIG68IH L=:G: I=:G: >H CD HJ8= BDC>IDG>C< 8DHIH >CKDAK:9
.=: DCAN DI=:G ;68IDG I=6I H><C>P86CIAN >C8G:6H:H I=: EGD767>A>IN D; DY:G>C<
6 PM:9
G:CI 8DCIG68I >H I=: >C8G:6H>C< CJB7:G D; B6A: 6<G>8JAIJG6A LDG@:GH >C
I=: =DJH:=DA9 .=: H><C D; I=>H 8D:X8>:CI >H JC:ME:8I:9 #I >H EG:9>8I:9 I=6I
>C8G:6H>C< I=: CJB7:G D; B6A: LDG@:GH L>AA >C8G:6H: I=: BDC>IDG>C< 67>A>IN L=>8=
>C IJGC H=DJA9 =6K: 6 EDH>I>K: :Y:8I DC DY:G>C< 8GDE
H=6G: 8DCIG68IH "DL:K:G
EJI 6CDI=:G L6N ;6GB>C< =DJH:=DA9H L>I= HJGEAJH B6A: 6<G>8JAIJG6A LDG@:GH
6G: BDG: A>@:AN ID DEI ;DG 7:II:G
E6N>C< CDC
6<G>8JAIJG6A 68I>K>IN L=>8= >C IJGC
>C8G:6H:H I=: BDC>IDG>C< 8DHI
Table 5.11 Stage 2: Moral hazard model: Outcome equation (landlord sub-sample)
variables
Landlord farming households
Contract choice: 1 if share contract, 0 if fixed rent contract
l_age_head
-0.012
(0.008)
0.0001
(0.00007)
-0.075
(0.079)
-0.003
(0.019)
-0.121*
(0.056)
0.0005
(0.002)
-0.073
(0.050)
-0.006
(0.020)
0.080
(0.095)
-0.056*
(0.332)
-0.002
(0.006)
0.00005
(0.00009)
0.182
(0.258)
-0.056
(0.051)
-0.025
(0.120)
0.049
(0.049)
-0.228
l_age_head2
l_female_head
l_healthy_popu
l_primary_occup_head
l_edu_active_labour
l_ngo_membership
l_hhsize
l_depen_ratio
l_agri_male
t_age_head
t_age_head2
t_female_head
t_healthy_popu
t_primary_occup_head
t_hhsize
Inverse Mills ratio
rho
-0.504
sigma
0.452
Wald chi2
609.25 (29)
No. of observations
526
* significance in 95% confidence interval ; ** significance in 90% confidence interval
The regression also include male, female agricultural labour force information, bullock power variable, average rainfall in
different years and different districts and dummies for different ecosystem (flood prone, drought prone, irrigated,
favourable)and soil type (loamy and clay) as control variables; S.E. are in parenthesis
#C HJBB6GN ;DG 7DI= I=: I:C6CI 6C9 I=: A6C9ADG9 ;6GB>C< =DJH:=DA9H I=:
BDG6A =6O6G9 EGD7A:B EA6NH 6 K>I6A GDA: >C I=: 9:8>H>DC D; L=:I=:G ID :CI:G >CID
I=: >C;DGB6A A:6H: B6G@:I G6I=:G I=6C 6;I:G :CI:G>C< 8=DDH>C< 6 E6GI>8JA6G 8DC
IG68I (:K:GI=:A:HH 6 I:C6CI ;6GB:G ;68:H 6 BDG: =67>IJ6A BDC>IDG>C< EGD7A:B
;DG 8DCIGDAA>C< =>H LDG@:GH >C 8GDE 8JAI>K6I>DC I=6C 6 A6C9ADG9
43)1:8/43
.=>H HIJ9N 6>BH ID 8DCIG>7JI: ID I=: :BE>G>86A A>I:G6IJG: 67DJI 6<G6G>6C I:C6C8N
8DCIG68IH 6C9 I=: A6C9ADG9
I:C6CI G:A6I>DCH=>E #I EGDK>9:H :K>9:C8: ;GDB GJG6A
6C<A69:H= 7N 8DBEG:=:CH>K:AN 8DCH>9:G>C< I=: :Y:8IH D; DEEDGIJC>IN 8DHIH
D; :CI:G>C< >CID I=: I:C6C8N B6G@:I 6C9 I=: G>H@
H=6G>C< 6C9 BDG6A =6O6G9
EGD7A:BH >C 8=DDH>C< 6 HE:8>P8 8DCIG68I
#C E6GI>8JA6G G:HJAIH ;GDB I=: EG:A>B>C6GN HIJ9>:H DC I=: 96I6 H:I H=DL I=6I
>C GJG6A 6C<A69:H= E:G8:CI D; I=: ;6GB:GH 9D CDI E6GI>8>E6I: >C I=: >C;DGB6A
A6C9 B6G@:I -J7HI6CI>6A CDC
E6GI>8>E6I>DC >C I=: A6C9 G:CI6A B6G@:I >C9>86I:H
I=: EG:H:C8: D; 8DCH>9:G67A: DEEDGIJC>IN 8DHIH >C I=>H B6G@:I ,:HJAIH 6AHD
H=DL:9 I=6I A6C9 G:CI6A IG6CH68I>DCH 6G: BDI>K6I:9 7N I=: C::9 ID 69?JHI A6C9
6G:6 8JAI>K6I:9 ID I=: H>O: 6C9 H><C>P6CIAN 9:E:C9 DC I=: :MI:CI D; 6K6>A67>A>IN
D; ;6B>AN A67DJG 6C9 EDHH:HH>DC D; A6C9 6HH:IH
I:C6CISH G>H@ 6K:GH:C:HH DC 8DCIG68I 8=D>8: >H G:Q:8I:9 DCAN I=GDJ<= =>H
DLC :8DCDB>8 :K6AJ6I>DC EDDG B>99A: 8A6HH DG G>8= G6I=:G I=6C =>H EDHH:HH>DC
D; DI=:G INE:H D; A6C9 6HH:I 6C9 6K6>A67A: LDG@>C< 86E>I6A DG 8G:9>I ;68>A>I>:H
->B>A6GAN I=: A6C9ADG9H >C8G:6H: I=: 6BDJCI D; A6C9 ID A:6H:
DJI >; I=:N =6K:
67JC96CI A6C9 6C9 H86G8>IN D; 6K6>A67A: ;6B>AN A67DJG .=:H: G:HJAIH 9G6L
6II:CI>DC ID ILD >HHJ:H PGHI >I HJEEDGIH I=: A67DJG
>CI:CH>K: C6IJG: D; I=:
6<G>8JAIJG: HNHI:B >C GJG6A 6C<A69:H= A>@: B6CN DI=:G 9:K:ADE>C< 8DJCIG>:H
-:8DC9 >I ED>CIH IDL6G9H 6 B>HH>C< B6G@:I ;DG I=: 6<G>8JAIJG6A L6<:9 A67DJG
)C I=: 8=D>8: D; 8DCIG68I 6 A6C9ADG9SH EGDM>:H ;DG G>H@ 6K:GH:C:HH 6G: >CH><C>;
>86CI HJ<<:HI>C< I=6I I=:N 6G: BDG: DG A:HH G>H@ C:JIG6A .=:H: G:HJAIH 9G6L
6II:CI>DC ID ILD >HHJ:H PGHI >I HJEEDGIH I=: A67DJG
>CI:CH>K: C6IJG: D; I=:
6<G>8JAIJG: HNHI:B >C GJG6A 6C<A69:H= A>@: B6CN DI=:G 9:K:ADE>C< 8DJCIG>:H
-:8DC9 >I ED>CIH IDL6G9H 6 B>HH>C< B6G@:I ;DG I=: 6<G>8JAIJG6A L6<:9 A67DJG
:IL::C I=: G>H@
H=6G>C< =NEDI=:H>H 6C9 BDG6A =6O6G9 =NEDI=:H>H I=: EG:H
:C8: D; I=: BDG6A =6O6G9 9J: ID I=: BDC>IDG>C< EGD7A:B >H HJEEDGI:9 ;DG 7DI=
<GDJEH .=: A6C9ADG9H 6C9 I=: I:C6CIH >C I=>H 6C6ANH>H ;68: H><C>P86CI BDC>
IDG>C< EGD7A:BH HI>B6I:H ;GDB H:A:8I>DC BD9:AH HJEEDGI I=: EG:H:C8: D; I=:
BDG6A =6O6G9 EGD7A:B ;DG I=: A6C9ADG9 :MEA6>C:9 7N I=: BDC>IDG>C< EGD7A:B
.=:H: BD9:AH H=DL I=6I >; I=: =DJH:=DA9 =6H ;:L:G 6<G>8JAIJG6A B6A: A67DJG:GH
DG >H =:69:9 7N 6 ;:B6A: I=:C I=: EGD767>A>IN D; DY:G>C< 6 PM:9
G:CI 8DCIG68I
>C8G:6H:H ":C8: I=: BDC>IDG>C< 86E68>IN D; I=: A6C9ADG9 >H 6C >BEDGI6CI ;68
IDG >C 8=DDH>C< 6 E6GI>8JA6G 8DCIG68I DY:G:9 ID I=: I:C6CIH >C GJG6A 6C<A69:H=
.=: A6C9ADG9H 6G: 8DC8:GC:9 67DJI I=:>G K6AJ67A: 6HH:I L=:G:7N I=:N A:6H:
DJI
A6C9 6C9 E6GI>8>E6I: >C I=: A6C9 G:CI6A B6G@:I L=:C I=:N 86C :CHJG: 6 B>C>
BJB A:K:A D; BDC>IDG>C< 86E68>IN .=:G:;DG: 6 A6C9ADG9 =DJH:=DA9 L>I= A:HH
HJ7H>HI:C8: EG:HHJG: 6C9 BDG: ;:B6A: A67DJG I:C9H ID DY:G PM:9
G:CI 8DCIG68IH
I I=: H6B: I>B: 6 A6C9ADG9 L>AA DY:G 6 H=6G:8GDEE>C< 8DCIG68I DCAN L=:C =:
=6H HJX8>:CI DI=:G A6C9 6HH:IH >GG><6I>DC ;68>A>I>:H >C =>H A6C9 ;DG A:6H: 6C9 I=:
86E68>IN ID BDC>IDG I:C6CI ;6GB:GH
.=: 6C6ANH>H D; I=>H E6E:G >H 6 HI:EE>C< HIDC: ID JC9:GHI6C9 I=: B:8=6C>HB
D; I=: >C;DGB6A A6C9 I:C6C8N B6G@:I "DL:K:G BDG: 8DBEG:=:CH>K: 6C6ANH>H >H
HI>AA C::9:9 >C ;JIJG: 9J: ID I=: ;68I I=6I I=>H E6E:G 9D:H CDI ;D8JH DC I=: >HHJ:
D; EDHH>7A: CDC
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>H CDI K:GN EDEJA6G E6GI>8JA6GAN >C GJG6A 6G:6H
.'59+7 "/= 3*4-+34:8 '9)./3- '3* 9.+
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G>H@ 6II>IJ9:H D; I=: 8DCIG68I>C< E6GI>:H 6C9 D; BDC>IDG>C< 6C9 DI=:G IG6CH68
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D; I=: :BE>G>86A A>I:G6IJG: JH>C< 8DCIG68I 8=D>8: I=:DGN DK:GADD@H 6C >BEDGI6CI
ED>CI .=: 96I6 8DB: ;GDB I=: B6G@:I I=6I 8DCH>HIH D; =:I:GD<:C:DJH EG>C8>
E6AH 6C9 6<:CIH ":C8: 6C6ANH:H L=>8= ><CDG: I=: EDHH>7>A>IN D; I=: EG:H:C8:
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I>8JA6G INE:H D; I:C6CIH DG A6C9ADG9H DG E6GI>8JA6G INE:H D; I:C6CIH 8=DDH:
E6GI>8JA6G INE:H D; 8GDE EG68I>8:H >: I=: B6I8=>C< EGD8:HH <<6GL6A .=: 8:CIG6A B:HH6<: D; I=>H HIJ9N >H I=6I I=:G: 6G: B6CN HDJG8:H D; B6I8=>C<
7:IL::C I=: A6C9ADG9 6C9 I=: I:C6CI ;6GB:GH 1=:C I=: A6C9ADG9H 6G: =:I:GD
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H:CI6I>K: H6BEA: D; G>8: ;6GB:GH >C GJG6A 6C<A69:H= 8DC9J8I:9 ID 6HH:HH 8=6C<:H
>C GJG6A A>K:A>=DD9 HNHI:BH .=: 7:C8=B6G@ HJGK:N L6H >BEA:B:CI:9 >C 7N #,,# L>I= GJG6A =DJH:=DA9H ;GDB K>AA6<:H >C DJI D; 9>HIG>8IH
>C 6C<A69:H= ;DG 6 HIJ9N D; I=: >BE68I D; G>8: G:H:6G8= DC EDK:GIN G:9J8I>DC
>C 6C<A69:H= HEDCHDG:9 7N I=: #CI:GC6I>DC6A DD9 *DA>8N ,:H:6G8= #CHI>IJI:
"DHH6>C :I 6A .=: H6BEA: L6H 9G6LC 7N JH>C< 6 BJAI>HI6<: G6C9DB
H6BEA>C< B:I=D9 #C I=: PGHI HI6<: JC>DCH L:G: G6C9DBAN H:A:8I:9 ;GDB 6
A>HI D; 6AA JC>DCH >C I=: 8DJCIGN #C I=: H:8DC9 HI6<: DC: K>AA6<: L6H H:A:8I:9
;GDB :68= JC>DC I=6I 7:HI G:EG:H:CI:9 I=: JC>DC L>I= G:<6G9 ID I=: H>O: D; A6C9
=DA9>C< 6C9 A>I:G68N G6I: 8:CHJH D; 6AA I=: =DJH:=DA9H >C I=: H:A:8I:9 K>AA6<:H
L6H 8DC9J8I:9 ID HIG6I>;N I=: =DJH:=DA9H 7N I=: H>O: D; A6C9 DLC:GH=>E 6C9
A6C9 I:CJG: G6C9DB H6BEA: D; =DJH:=DA9H L6H 9G6LC ;GDB :68= K>AA6<:
HJ8= I=6I :68= HIG6IJB >H G:EG:H:CI6I>K: D; >IH EGD767>A>IN EGDEDGI>DC .=: PC6A
L6K: L6H 8DC9J8I:9 7N #,,# >C V ;DAADL>C< I=: =DJH:=DA9H EG:H:CI >C
I=: PGHI ILD L6K:H 6C9 I=:>G 9:H8:C96CIH .=: H6BEA: H>O: D; =DJH:=DA9H GDH:
ID >C I=: A6HI L6K:
BDC< I=: 8=6G68I:G>HI>8H D; I=: H6BEA: =DJH:=DA9H I=: 6K:G6<: H>O: D; 8JA
I>K6I:9 A6C9 E:G =DJH:=DA9 9:8G:6H:9 DK:G I>B: ;GDB =6 >C ID =6 >C
I=>H L6H 6IIG>7JI67A: ID I=: 9>K>H>DC D; A6C9 L>I= I=: HEA>II>C< D; =DJH:
=DA9H DK:G I>B: N I:C6C8N HI6IJH DLC:G ;6GB:GH 8DCHI>IJI:9 I=: A6G<:HI <GDJE
D; =DJH:=DA9H )K:G V I=: EGDEDGI>DC D; DLC:9 ;6GBH 9:8A>C:9 HJ7HI6C
I>6AAN ;GDB E:G8:CI ID E:G8:CI L=>A: I=: EGDEDGI>DC D; EJG:
I:C6CI ;6GB:GH
>C8G:6H:9 ;GDB E:G8:CI ID E:G8:CI .=: 6G:6 JC9:G I:C6C8N >C8G:6H:9 ;GDB
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67A: >C8G:6H: >C I=: EGDEDGI>DC D; CDC
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EDEJA6I>DC EG:HHJG: DC I=: A>B>I:9 A6C9 G:HDJG8:H
":22'7> "9'9/89/)8
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I=: A6C9ADG9H 6C9 I=: I:C6CI ;6GB:GH #I 8DCI6>CH >C;DGB6I>DC DC 9:BD<G6E=>8
8=6G68I:G>HI>8H D; I=: =DJH:=DA9 6H L:AA 6H 8=6G68I:G>HI>8H D; I=: EADIH I=6I I=:N
DLC DG G:CI ;GDB DI=:GH .=: K6G>67A:H I=6I 6G: JH:9 >C I=: :HI>B6I>DCH 6G: I=:
;DAADL>C<
.=: A6C9ADG9SH 6C9 I=: I:C6CISH EGD9J8I>K: 8=6G68I:G>HI>8H 6C9 6HH:IH 6G:
I=: 6<: :9J86I>DC 6C9 EG>B6GN D88JE6I>DC D; I=: =DJH:=DA9 =:69 =:6AI=
HI6IJH D; I=: =DJH:=DA9 B:B7:GH CJB7:G D; 69JAI 6C9 9:E:C9:CI =DJH:
=DA9 B:B7:GH 6C9 I=: CJB7:G D; B6A: 6C9 ;:B6A: 6<G>8JAIJG6A A67DJG:GH
>C I=: =DJH:=DA9 #C 699>I>DC I=: 6C6ANH>H JH:H =DJH:=DA9 L:6AI= 6H
B:6HJG:9 7N 6AA A6C9 EGDE:GI>:H DLC:9 7N 6 =DJH:=DA9 =DJH:=DA9SH 9:7I
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;6GB:GH
Table 6.1 Summary statistics
Variable
Description
Mean
tenant
landlord
share
crop_practice
mono cropping
bi cropping
tri croppimg
t_debt_capital
If rent in >0
If rent out >0
=1 if share cropping in
=0 if mono crop; 1 if bi crop; 2 if tri crop
=1 if mono crop
=1 if bi crop
=1 if tri crop
tenant’s liquidity constraint/ tenant’s
working capital
tenant’s liquidity constraint/ tenant’s
working capital
tenant’s own cultivated land + homestead
and other land
landlord’s own cultivated land +
homestead and other land
landlord’s liquidity constraint/ landlord’s
per capita income
landlord’s liquidity constraint/ landlord’s
per capita income
0.401
0.487
0.739
0.671
0.386
0.554
0.058
0.448
Standard
deviation
0.407
0.658
0.438
0.581
0.487
0.497
0.234
3.790
0.126
1.471
0.159
0.512
0.248
0.764
0.251
0.788
0.100
0.516
l_debt_capital
t_wealth
l_wealth
t_debt_income
l_debt_income
.67A: EG:H:CIH HDB: 8GDHH I67JA6I>DCH D; I=G:: K6G>67A:H ;DG I=: 6<<G:<6I:
6C9 ;DG I=: H:K:C B6?DG 9>K>H>DCH >C9>K>9J6AAN .=: K6G>67A:H JH:9 >C I=: 8GDHH
I67JA6I>DCH 6G: 8GDE EG68I>8: 6BDC< I=: I:C6CI ;6GB:GH L=D 8JAI>K6I: JC9:G
ILD B6?DG INE:H D; I:C6C8N 8DCIG68IH H=6G:8GDEE>C< 8DCIG68I 6C9 PM:9
G:CI
8DCIG68I 6C9 I=: A:K:A D; I=:>G 9:7I
ID
86E>I6A G6I>D GDE EG68I>8: >H :FJ6A ID
O:GD ;DG BDCD
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9JG>C< 6 8GDEE>C< N:6G DC: ;DG 7>
8GDEE>C< >; 6 =DJH:=DA9 8JAI>K6I:H ILD G>8:
8GDEH 9JG>C< 6 8GDEE>C< N:6G 6C9 ILD ;DG IG>
8GDEE>C< >; I=: CJB7:G D; 8JAI>K6I:H
G>8: 8GDEH 6G: I=G::
Table 6.2: Distribution of crop practice, electricity and contract
Contract (%)
Crop practice
Share = 1
Fixed = 0
Total
Whole sample
Mono-cropping
55.24
42.75
44.23
(2.359)
(1.253)
(2.080)
Bi-cropping
51.66
54.35
52.36
(0.589)
(0.376)
(0.535)
Tri-cropping
3.58
2.90
3.40
(0.093)
(0.627)
(0.216)
Dhaka
Mono-cropping
39.84
54.17
42.18
Bi-cropping
56.10
45.83
54.42
Tri-cropping
4.07
0.00
3.40
Chittagong
Mono-cropping
40.98
21.43
37.33
Bi-cropping
54.10
64.29
56.00
Tri-cropping
4.92
14.29
6.67
Barisal
Mono-cropping
36.36
42.86
38.30
Bi-cropping
57.58
42.89
53.19
Tri-cropping
6.06
14.29
8.51
Rajshahi
Mono-cropping
47.92
32.35
41.46
Bi-cropping
50.00
67.65
57.32
Tri-cropping
2.08
0.00
1.22
Khulna
Mono-cropping
53.09
56.52
53.85
Bi-cropping
44.44
43.48
44.23
Tri-cropping
2.47
0.00
1.92
Rangpur
Mono-cropping
48.57
40.74
45.16
Bi-cropping
51.43
59.26
54.84
Tri-cropping
0.00
0.00
0.00
Sylhet
Mono-cropping
60.00
100.00
66.67
Bi-cropping
30.00
0.00
25.00
Tri-cropping
10.00
0.00
8.33
Electricity
0
49.87
29.71
44.61
1
50.13
70.29
55.39
Note- the figures in the parentheses are the mean debt-to-capital ratio of the tenants in that cell.
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6 <>K:C 8GDE EG68I>8: I=: B:6C I:C6CISH 9:7I
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8GDE INE:
L=:G: 9:CDI:H EGD767>A>IN 9:CDI:H I=: D7H:GK67A: K:8IDG D; G:<G:HHDGH
>C8AJ9>C< EGDM>:H ;DG G>H@ 6II>IJ9:H D; I=: E:GHDC L=D 9:8>9:H I=: 8DCIG68I 6H L:AA
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% L=:G:
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ID I=: JC>FJ: B6M>BJB
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G:HJAIH ;D8JH DC I=: EG:H:C8: D; B6I8=>C< 7:IL::C I:C6CI ;6GB:GH 6C9 8GDE >C
I:CH>IN .=: H:8DC9 G:HJAIH >C8AJ9: B6I8=>C< 7:IL::C I=: A6C9ADG9 I=: I:C6CI
6C9 I=: I:C6CI I=: A6C9ADG9 .=: 6C6ANH>H I=:C IJGCH ID I=: 8DCIG68I 8=D>8:
:FJ6I>DC L=:G: >I G:EG:H:CIH 7DI= G:HJAIH ;GDB 6 C6>K: 8DCIG68I 8=D>8: :FJ6I>DC
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7')9/)+ '3* 9.+ #+3'39A8 .'7')9+7/89/)8
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A:BH >H ID 8=:8@ 8DGG:A6I>DCH 7:IL::C D7H:GK67A: 8GDE EG68I>8: 6C9 6<:CI 8=6G
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8=D>8: D; 8GDE EG68I>8: DC I:C6CISH D7H:GK67A: G>H@ EG:;:G:C8:H .=: G:<G:HH>DCH
6G: 6AHD 8DCIGDAA:9 ;DG :8DHNHI:B G6>C;6AA 6C9 HD>A 9JBB>:H .=: G:HJAIH 8DC
PGB 6 H><C>P86CI 6C9 C:<6I>K: G:A6I>DCH=>E 7:IL::C 8=D>8: D; 8GDE EG68I>8: 6C9
I:C6CISH 9:7I
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8GDEE>C< E6II:GC
Table 6.3: Estimation results for crop practice
Dependent variable: 0 if mono crop, 1 if bi crop and 2 in tri crop
Variables
Fixed effect model Probit model
t_debt_capital
-0.013**
-0.047**
(0.003)
(0.022)
t_agri_male
-0.015
0.090
(0.053)
(0.101)
t_agri_female
-0.192
0.358
(0.246)
(0.553)
t_age_head
-0.021
-0.027
(0.027)
(0.032)
t_age_head2
0.0003
0.003
(0.0003)
(0.003)
t_prim_occupation
-0.044**
0.042
(0.008)
(0.161)
t_cow_pp
6.00e-06
6.44e-06
(3.5e-06)
(6.31e-06)
t_hhsize
0.068
0.067
(0.048)
(0.086)
t_healthy_population
-0.045
-0.065
(0.046)
(0.086)
t_depen-ratio
0.170
0.948*
(0.236)
(0.373)
t_edu_active_labour
-0.004
0.011**
(0.003)
(0.005)
constant
0.363*
0.415
(0.208)
(0.903)
N
1174
1174
Wald chi 2 (19)
F(18,999)
303.72
LR chi2 (19)
62.62
** significant in 5% level, * significant in 10% level
Note: all equations control for average rainfall in different districts (64 districts) in 2000 and 2004, dummies for soil type and dummies for ecosystem:
fp- flood prone, dp- drought prone, fav-favourable, ir- irrigated. The estimation also checks with random effect model and compare random effect vs.
fixed effect using Hausman test. Hausman test shows that fixed effect model estimations are consistent over random effect model.
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:Y:8I BD9:A 6C9 =DJH:=DA9
N:6G PM:9
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L:6AI= 659'#.6* 6H H=DLC >C .67A: Table 6.4: Estimation results for Landlord’s risk preferences on tenant’s characteristics (fixed-effect model)
Dependent variable: l_debt_income and l_wealth
Variables
l_debt_income
l_wealth
t_debt_capital
0.003
-0.001
(0.004)
(0.003)
t_ngom
0.090
0.103
(0.057)
(0.077)
t_offfarm_income
5.04e-06
7.17e-06
(6.69e-06)
(7.96e-06)
t_hhsize
0.043
0.116**
(0.032)
(0.036)
t_depen-ratio
-0.082
-0.174
(0.181)
(0.195)
t_age_head
-0.008*
-0.019*
(0.003)
(0.005)
t_age_head2
0.0001**
0.0002*
(0.00005)
(0.00006)
t_edu_active_labour
0.0009
-0.0008
(0.0002)
(0.004)
t_healthy_population
-0.057
-0.113*
(0.037)
(0.035)
constant
0.384**
0.739**
(0.210)
(0.201)
N
205
205
F(18,1528)
101.25
104.35
** significant in 5% level, * significant in 10% level
Note: all equations control for average rainfall in different districts (64 districts) in 2000 and 2004, dummies for soil type and dummies for ecosystem:
fp- flood prone, dp- drought prone, fav-favourable, ir- irrigated. The estimation also checks with random effect model and compare random effect
vs. fixed effect using Hausman test. Hausman test shows that fixed effect model estimations are consistent over random effect model.
Table 6.5: Estimation results for Tenant’s risk preferences on landlord’s characteristics (fixed-effect model)
Dependent variable: t_debt_capital and t_wealth
Variables
l_debt_capital
l_debt_income
l_ngom
l_offfarm_income
l_hhsize
l_depen-ratio
l_age_head
l_age_head2
l_edu_active_labour
l_healthy_population
constant
N
F(18,1525)
t_debt_capital
0.125
(0.080)
0.222
(0.145)
0.247
(0.399)
4.38e-06
(2.84e-06)
-0.224
(0.268)
-0.316
(0.639)
-0.023
(0.019)
0.0002
(0.016)
0.002
(0.016)
0.222
(0.302)
0.818**
(0.477)
205
120.95
t_wealth
-0.014
(0.017)
0.024
(0.043)
0.060
(0.080)
-6.80e-06
(4.42e-06)
0.017
(0.039)
0.168
(0.195)
-0.002
(0.004)
8.31e-06
(0.00004)
0.002
(0.003)
0.023
(0.043)
0.164**
(0.126)
205
153.77
** significant in 5% level, * significant in 10% level
Note: all equations control for average rainfall in different districts (64 districts) in 2000 and 2004, dummies for soil type and dummies for ecosystem:
fp- flood prone, dp- drought prone, fav-favourable, ir- irrigated. The estimation also checks with random effect model and compare random effect
vs. fixed effect using Hausman test. Hausman test shows that fixed effect model estimations are consistent over random effect model.
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Table 6.6: Estimation results tenancy contract choice
Dependent variable: 0 if fixed-rent contract, 1 if sharecropping contract
Variables
Fixed effect without IV Fixed effect with IV
t_debt_capital
-0.009
-0.011
(0.042)
(0.054)
t_selfeco
0.268**
0.235*
(0.102)
(0.138)
t_hhsize
0.097
0.138
(0.075)
(0.102)
t_femaleh
0.514
0.210
(0.422)
(0.572)
t_depen_ratio
-0.605*
-0.386
(0.369)
(0.533)
t_agehead
0.106*
0.122*
(0.063)
(0.084)
t_agehead2
-0.001**
-0.001*
(0.0006)
(0.0009)
t_agri_male
0.243**
0.229
(0.125)
(0.158)
t_agri_female
0.517
0.561
(0.558)
(0.689)
t_cowpp
5.54e-06
1.60e-06
(0.00001)
(0.00002)
t_primary_occu
0.158
0.182
(0.171)
(0.212)
t_edu_active_labour
0.023**
0.018*
(0.008)
(0.010)
t_healthy_popu
-0.132**
-0.152*
(0.062)
(0.081)
l_own_land
2.648
1.576
(1.939)
(3.393)
l_agehead
-0.012
-0.014
(0.013)
(0.018)
l_debt_capital
0.912*
0.711
(0.555)
(0.855)
l_healthy_popu
0.242**
0.120
(0.109)
(0.216)
l_debt_income
-2.021*
-0.960
(1.121)
(2.460)
l_wealth
-12.693**
-2.082
(5.502)
(15.133)
crop_inten
0.491**
0.303
(0.117)
(0.214)
constant
-2.903**
-3.011
(1.714)
(2.173)
N
506
506
F(464,14)
123.36
222.20
Prob>F
0.0009
0.0051
** significant in 5% level, * significant in 10% level
Note: all equations control for average rainfall in different districts (64 districts) in 2000 and 2004, dummies for soil type and dummies for ecosystem:
fp- flood prone, dp- drought prone, fav-favourable, ir- irrigated. The estimation also checks with random effect model and compare random effect
vs. fixed effect using Hausman test. Hausman test shows that fixed effect model estimations are consistent over random effect model
43)1:8/43
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Table A.1 Productivity efficiency of sharecropping: checking validity of instrument (ngom)
variables
ngom
hhsize
ageh
ageh2
eduhead
femaleh
prim_oocu_head
grplo
healthyp
male_agri_labour
female_agri_labour
active_labour_force
clvt_own_land
homestead_land
cow_no
irri_access
income_goat_poul
income_trees
credit_formal
credit_informal
log_non_agri_income
constant
N
R2
Dependent variable:
share dummy
Dependent variable:
log_rice_ha
(a)
0.081**
(0.026)
0.016
(0.018)
-0.011**
(0.005)
0.0001*
(0.00005)
-0.032
(0.021)
0.021
(0.094)
0.023
(0.038)
0.391**
(0.082)
-0.014
(0.017)
-0.011
(0.019)
-0.162
(0.112)
0.017
(0.018)
-0.119**
(0.017)
-0.580**
(0.216)
-0.004
(0.006)
-0.039
(0.030)
3.89e-06
(6.71e-06)
-3.29e-06**
(1.68e-06)
-3.21e-06
(1.41e-06)
-6.88e-06*
(3.86e-06)
-0.004
(0.012)
0.369*
(0.113)
1043
0.145
(b)
0.029
(0.023)
-0.029*
(0.016)
0.015**
(0.005)
-0.0001**
(0.00005)
-0.026
(0.019)
0.073
(0.082)
-0.036
(0.035)
-0.005
(0.075)
0.012
(0.016)
-0.029*
(0.017)
0.001
(0.100)
-0.017
(0.016)
-0.013
(0.016)
0.026
(0.198)
0.0005
(0.006)
-0.064
(0.027)
2.52e-06
(6.13e-06)
-2.46e-06
(1.54e-06)
2.33e-06*
(1.29e-06)
-2.54e-06
(3.60e-06)
-0.021*
(0.012)
0.977**
(0.210)
1071
0.114
** significant in 5% level, * significant in 10% level
Note: all equations control for average rainfall in different districts (64 districts) in 2000 and 2004, dummies for soil type and
dummies for ecosystem: fp- flood prone, dp- draught prone, fav-favourable, ir- irrigated.
Table A2: Estimation results of marginal effect for crop practice
Dependent variable: 0 if monocrop, 1 if bicrop and 2 in tricrop
Variables
Marginal effect
t_debt_capital
-0.012**
(0.005)
t_agri_male
0.020
(0.023)
t_agri_female
0.089
(0.113)
t_age_head
-0.006**
(0.002)
t_age_head2
0.00005**
(0.0003)
t_prim_occupation
-0.005
(0.037)
t_cow_pp
1.68e-06
(0.0000)
t_hhsize
0.015
(0.020)
t_healthy_population
-0.013
(0.021)
t_depen-ratio
0.217**
(0.087)
t_edu_active_labour
-0.002
(0.013)
Prob (y)
0.619
** significant in 5% level, * significant in 10% level
Fig. A1 : checking heteroscedasticity: plot res log_rice_ha
1.70103 +
|
L
|
**
i
|
* * *** * *
*
n
|
* **** **** ** *
e
|
** * ************** *
a
|
* ******************** ****
r
|
*** ********************
|
*
* ********************** *
p
|
* ******************* * *
r
|
*
********************** *
e
|
* *
*****************
d
|
* ********************* *
i
|
* * * * * ***********
c
| *
* *** **
*
t
|
*
* * ** **
i
|
*
*
o
|
** *
n
|
**
|
*
.832072 +
*
*
*
+----------------------------------------------------------------+
-.887541
log_rice_ha
3.54328
Fig A2: Checking correlation among labour variables
(hhsize= household size; wrkmag= male_agri_labour;
wrkfag= female_agri_labour; actvlf= active_labour_force)
. corr hhsize
(obs=3215)
hhsize
hhsize
wrkmag
wrkfag
actvlf
wrkmag wrkfag actvlf
wrkmag
wrkfag
actvlf
1.0000
0.2806 1.0000
-0.1082 -0.0961 1.0000
0.0621 0.1367 -0.1208
1.0000