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Off‐farm work, land tenancy contracts and investment in soil conservation measures in rural Pakistan
Author(s) -
Kousar Rakhshanda,
Abdulai Awudu
Publication year - 2016
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.12125
Subject(s) - leasehold estate , tobit model , endogeneity , productivity , investment (military) , work (physics) , business , sharecropping , agricultural economics , land tenure , economics , natural resource economics , agriculture , economic growth , geography , econometrics , mechanical engineering , engineering , archaeology , politics , political science , law
This study examines the impacts of participation in off‐farm work and land tenancy contracts on the intensity of investment in soil‐improving measures and farm productivity. A multivariate Tobit model that accounts for potential endogeneity between the intensity of investment and the off‐farm work and tenancy contract variables is estimated for 341 rural households in Punjab province of Pakistan. An instrumental variable approach is also used to analyse the impact of tenancy contract and off‐farm work on farm productivity. The empirical results show that participation in off‐farm work and tenure security tends to increase the intensity of investment in long‐term soil‐improving measures. We also find that increases in off‐farm work and tenure security exert significant and positive effects on farm productivity.