KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Assessing the Role of Land Use Consolidation for Consumption Growth in Rwanda
Abstract: This paper studies the effects of land use consolidation
on consumption growth of farm households in Rwanda. Data on 1 920
households, observed in two time periods, are used to estimate a
first-differenced model using an instrumental variables estimator, which
allow the analysis to account for selection bias and placement effects.
Results show no significant effect of land use consolidation on consumption
growth and the results are robust to changes in model specification and
estimation method. Rather, the results point to the importance of factors
such as education, rural infrastructure and market linkages in the
consumption growth process. These results highlight the need to consider
that alternative public investments, that reduce households’ transaction
costs, may be better able to target rural farmers that operate under
conditions such as land scarcity, high population pressure and high risk
linked to rapidly changing climate conditions.
Keywords: land consolidation; consumption; Rwanda; first-difference; (follow links to similar papers)
JEL-Codes: O12; Q15; Q18; (follow links to similar papers)
23 pages, April 6, 2017
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