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  • 2010-2014  (19)
  • 2000-2004  (1)
  • Deininger, Klaus  (20)
  • Washington, D.C : The World Bank  (20)
  • 1
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    Is There a Farm-Size Productivity Relationship in African Agriculture? : Evidence from Rwanda (2014)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (46 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Ali, Daniel Ayalew Is There a Farm-Size Productivity Relationship in African Agriculture?
    Abstract: Whether the negative relationship between farm size and productivity that is confirmed in a large global literature holds in Africa is of considerable policy relevance. This paper revisits this issue and examines potential causes of the inverse productivity relationship in Rwanda, where policy makers consider land fragmentation and small farm sizes to be key bottlenecks for the growth of the agricultural sector. Nationwide plot-level data from Rwanda point toward a constant returns to scale crop production function and a strong negative relationship between farm size and output per hectare as well as intensity of labor use that is robust across specifications. The inverse relationship continues to hold if profits with family labor valued at shadow wages are used, but disappears if family labor is rather valued at village-level market wage rates. These findings imply that, in Rwanda, labor market imperfections, rather than other unobserved factors, seem to be a key reason for the inverse farm-size productivity relationship
    DOI: 10.1596/1813-9450-6770
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  • 2
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    The Price of Empowerment : Experimental Evidence on Land Titling in Tanzania (2014)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (37 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Ali, Daniel Ayalew The Price of Empowerment
    Keywords: Bodenreform ; Bodenrecht ; Geschlecht ; Feldforschung ; Tansania
    Abstract: This paper reports on a randomized field experiment that uses price incentives to address economic and gender inequality in land tenure formalization. During the 1990s and 2000s, nearly two dozen African countries proposed de jure land reforms extending access to formal, freehold land tenure to millions of poor households. Many of these reforms stalled. Titled land remains the de facto preserve of wealthy households and, within households, men. Beginning in 2010, the study tested whether price instruments alone can generate greater inclusion by offering formal titles to residents of a low-income, unplanned settlement in Dar es Salaam at a range of subsidized prices, as well as additional price incentives to include women as owners or co-owners of household land. Estimated price elasticities of demand confirm that prices-rather than other implementation failures or features of the titling regime-are a key obstacle to broader inclusion in the land registry, and that some degree of pro-poor price discrimination is justified even from a narrow budgetary perspective. In terms of gender inequality, the study finds that even small price incentives for female co-titling achieve almost complete gender parity in land ownership with no reduction in demand
    DOI: 10.1596/1813-9450-6908
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  • 3
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    Credit Constraints, Agricultural Productivity, and Rural Nonfarm Participation : Evidence from Rwanda (2014)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (30 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Ali, Daniel Ayalew Credit Constraints, Agricultural Productivity, and Rural Nonfarm Participation
    Abstract: Although the potentially negative impacts of credit constraints on economic development have long been discussed conceptually, empirical evidence for Africa remains limited. This study uses a direct elicitation approach for a national sample of Rwandan rural households to assess empirically the extent and nature of credit rationing in the semi-formal sector and its impact using an endogenous sample separation between credit-constrained and unconstrained households. Being credit constrained reduces the likelihood of participating in off-farm self-employment activities by about 6.3 percent while making participation in low-return farm wage labor more likely. Even within agriculture, elimination of all types of credit constraints in the semi-formal sector could increase output by some 17 percent. Two suggestions for policy emerge from the findings. First, the estimates suggest that access to information (education, listening to the radio, and membership in a farm cooperative) has a major impact on reducing the incidence of credit constraints in the semi-formal credit sector. Expanding access to information in rural areas thus seems to be one of the most promising strategies to improve credit access in the short term. Second, making it easy to identify land owners and transfer land could also significantly reduce transaction costs associated with credit access
    DOI: 10.1596/1813-9450-6769
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  • 4
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    Inheritance Law Reform, Empowerment, and Human Capital Accumulation : Second-Generation Effects from India (2014)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (31 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Deininger, Klaus Inheritance Law Reform, Empowerment, and Human Capital Accumulation
    Abstract: This paper uses evidence from three Indian states, one of which amended inheritance legislation in 1994, to assess first- and second-generation effects of inheritance reform using a triple-difference strategy. Second-generation effects on education, time use, and health are larger and more significant than first-generation effects even controlling for mothers' endowments. Improved access to bank accounts and sanitation as well as lower fertility in the parent generation suggest that inheritance reform empowered females in a sustainable way, a notion supported by significantly higher female survival rates
    DOI: 10.1596/1813-9450-7086
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  • 5
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    Does Land Fragmentation Increase the Cost of Cultivation? : Evidence from India (2014)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (27 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Deininger, Klaus Does Land Fragmentation Increase the Cost of Cultivation?
    Abstract: Although a large literature discusses the productivity effects of land fragmentation, measurement and potential endogeneity issues are often overlooked. This paper uses several measures of fragmentation and controls for endogeneity and crop choice by looking at inherited paddy and wheat plots to show that these issues matter empirically. While crop choice can mitigate effects, fragmentation as measured by the Simpson index increases production cost and fosters substitution of labor for machinery, especially for small and medium farmers. Greater distances between fragments have a smaller effect. Creating opportunities for market-based consolidation could be one step to limit fragmentation-induced cost increases
    DOI: 10.1596/1813-9450-7085
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  • 6
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    Welfare and Poverty Impacts of India's National Rural Employment Guarantee Scheme : Evidence from Andhra Pradesh (2013)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (31 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Deininger, Klaus Welfare and Poverty Impacts of India's National Rural Employment Guarantee Scheme
    Abstract: This paper uses a three-round 4,000-household panel from Andhra Pradesh together with administrative data to explore short and medium-term poverty and welfare effects of the National Rural Employment Guarantee Scheme. Triple difference estimates suggest that participants significantly increase consumption (protein and energy intake) in the short run and accumulate more nonfinancial assets in the medium term. Direct benefits exceed program-related transfers and are most pronounced for scheduled castes and tribes and households supplying casual labor. Asset creation via program-induced land improvements is consistent with a medium-term increase in assets by nonparticipants and increases in wage income in excess of program cost
    DOI: 10.1596/1813-9450-6543
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  • 7
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    Are Mega-Farms the Future of Global Agriculture? : Exploring the Farm Size-Productivity Relationship for Large Commercial Farms in Ukraine (2013)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (37 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Deininger, Klaus Are Mega-Farms the Future of Global Agriculture?
    Abstract: With farms cultivating tens or hundreds of thousands of hectares, Ukraine is often used to demonstrate the existence of economies of scale in modern grain production. Panel data analysis for all the country's farms with more than 200 hectares in 2001-2011 suggests that higher yields and profits are due to unobserved factors at rayon (district) and farm level rather than economies of scale. Productivity growth was driven not by farm expansion but by exit of unproductive and entry of more efficient farms. Higher initial shares of area under farms with more than 3,000 or 5,000 hectares at the rayon level significantly reduce subsequent exit, suggesting that land concentration reduces productivity growth. The paper draws implications for global evolution of farm structures
    DOI: 10.1596/1813-9450-6544
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  • 8
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    Moving off the Farm : Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China (2012)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (30 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Deininger, Klaus Moving off the Farm
    Abstract: Agriculture has made major contributions to China's economic growth and poverty reduction, but the literature has rarely focused on the institutional factors that might underpin such structural transformation and productivity. This paper aims to fill that gap. Drawing on an 8-year panel of 1,200 households in six key provinces, it explores the impact of government land reallocations and formal land-use certificates on agricultural productivity growth, as well as the likelihood of households to exit from agriculture or send family members to the non-farm sector. It finds that land tenure insecurity, measured by the history of past land reallocations, discourages households from quitting agriculture. The recognition of land rights through formal certificates encourages the temporary migration of rural labor. Both factors have a large impact on productivity (at about 30 percent each), mainly by encouraging market-based land transfers. A sustained increase in non-agricultural opportunities will likely reinforce the importance of secure land tenure, which is a precondition for successful structural transformation and continued economic attractiveness of rural areas
    DOI: 10.1596/1813-9450-5949
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  • 9
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    Land Fragmentation, Cropland Abandonment, and Land Market Operation in Albania (2012)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (31 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Klaus Deininger Land Fragmentation, Cropland Abandonment, and Land Market Operation in Albania
    Abstract: Albania's radical farmland distribution is credited with averting an economic crisis and social unrest during the transition. But many believe it led to a holding structure too fragmented to be efficient, and that public efforts to consolidate plots are needed to lay the foundation for greater rural productivity. This paper uses farm-level data from the 2005 Albania Living Standards Measurement Survey to explore this quantitatively. The analysis finds no support for the argument that fragmentation reduces productivity. However, producers fail to utilize about 10 percent of the country's productive land, and, in the majority of cases, this land has been idle for at least five years. Farmers quote inefficiently-small plots as the reason for this in few cases, casting doubt on the scope for land consolidation to solve this issue. Instead, the data are consistent with the notion of land market imperfections, which can be traced to gaps in the legal and policy framework, as well as inefficiencies in registry operations, leading to land abandonment on a large scale. To maintain the productive potential of Albania's rural economy and, if and when needed, the ability to conduct consolidation in a cost-effective and sustainable manner, it will be critical to complement the emphasis on consolidation with an effort to address those gaps and inefficiencies on a priority basis
    DOI: 10.1596/1813-9450-6032
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  • 10
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    Does Sharecropping Affect Productivity and Long-Term Investment? : Evidence from West Bengal's Tenancy Reforms (2012)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (33 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Deininger, Klaus Does Sharecropping Affect Productivity and Long-Term Investment?
    Abstract: Although transfer of agricultural land ownership through land reform had positive impacts on productivity, investment, and political empowerment in many cases, institutional arrangements in West Bengal - which made tenancy heritable and imposed a prohibition on subleasing - imply that early land reform benefits may not be sustained and gains from this policy remain well below potential. Data from a listing of 96,000 households in 200 villages, complemented by a detailed survey of 1,800 owner-cum tenants, point toward binding policy constraints and large contemporaneous inefficiency of share tenancy that is exacerbated by strong disincentives to investment. A conservative estimate puts the efficiency losses from such arrangements in any period at 25 percent
    DOI: 10.1596/1813-9450-6293
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  • 11
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    Causes and Implications of Credit Rationing in Rural Ethiopia : The Importance of Spatial Variation (2012)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (27 p)
    Edition: 2012 World Bank eLibrary
    Parallel Title: Ali, Daniel Ayalew Causes and Implications of Credit Rationing in Rural Ethiopia
    Abstract: This paper uses Ethiopian data to explore credit rationing in semi-formal credit markets and its effects on farmers' resource allocation and crop productivity. Credit rationing-both voluntarily and involuntarily-is found to be widespread in the sampled rural villages, largely because of risk-related factors. Political and social networks emerge as key determinants of access to credit among smallholder, peasant farmers. Significant regional variation emerges as well. In high-potential, surplus producing areas where credit is largely used for agricultural production, eliminating credit constraints is estimated to increase productivity by roughly 11 percentage points. By contrast, in low-productivity, drought prone areas where loans were rarely used to acquire inputs for crop production, the authors find no relationship between credit rationing and agricultural productivity. To be effective, efforts to improve agricultural productivity not only need to increase credit supply, but also explore the reasons for credit rationing and the availability of productive opportunities
    DOI: 10.1596/1813-9450-6096
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  • 12
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    The rise of large farms in land abundant countries : Do they have a future? (2011)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (37 p)
    Edition: 2011 World Bank eLibrary
    Parallel Title: Deininger, Klaus The rise of large farms in land abundant countries
    Abstract: Increased levels and volatility of food prices has led to a surge of interest in large-scale agriculture and land acquisition. This creates challenges for policy makers aiming to establish a policy environment conducive to an agrarian structure to contribute to broad-based development in the long term. Based on a historical review of episodes of growth of large farms and their impact, this paper identifies factors underlying the dominance of owner-operated farm structures and ways in which these may change with development. The amount of land that could potentially be available for expansion and the level of productivity in exploiting available land resources are used to establish a country-level typology. The authors highlight that an assessment of the advantages of large operations, together with information on endowments, can provide input into strategy formulation at the country level. A review of recent cases of land acquisition reinforces the importance of the policy framework in determining outcomes. It suggests that transparency and contract enforcement, recognition of local land rights and ways in which they can be exercised, attention to employment effects and technical viability, and mechanisms to re-allocate land from unsuccessful ventures to more productive entrepreneurs are key areas warranting the attention of policy makers
    DOI: 10.1596/1813-9450-5588
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  • 13
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    Does Female Reservation Affect Long-Term Political Outcomes : Evidence from Rural India (2011)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (32 p)
    Edition: 2011 World Bank eLibrary
    Parallel Title: Deininger, Klaus Does Female Reservation Affect Long-Term Political Outcomes
    Abstract: Although many studies have explored the impacts of political quotas for females, often with ambiguous results, the underlying mechanisms and long-term effects have received little attention. This paper uses nation-wide data from India spanning a 15-year period to explore how reservations affect leader qualifications, service delivery, political participation, local accountability, and individuals' willingness to contribute to public goods. Although leader quality declines and impacts on service quality are often negative, gender quotas are shown to increase the level and quality of women's political participation, the ability to hold leaders to account, and the willingness to contribute to public goods. Key effects persist beyond the reserved period and impacts on females often materialize only with a lag
    DOI: 10.1596/1813-9450-5708
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  • 14
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    Can Diaries Help Improve Agricultural Production Statistics : Evidence from Uganda (2011)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (25 p)
    Edition: 2011 World Bank eLibrary
    Parallel Title: Deininger, Klaus Can Diaries Help Improve Agricultural Production Statistics
    Abstract: Although good and timely information on agricultural production is critical for policy-decisions, the quality of underlying data is often low and improving data quality could have a high payoff. This paper uses data from a production diary, administered concurrently with a standard household survey in Uganda to analyze the nature and incidence of responses, the magnitude of differences in reported outcomes, and factors that systematically affect these. Despite limited central supervision, diaries elicited a strong response, complemented standard surveys in a number of respects, and were less affected by problems of respondent fatigue than expected. The diary-based estimates of output value consistently exceeded that from the recall-based production survey, in line with reported disposition. Implications for policy and practical administration of surveys are drawn out
    DOI: 10.1596/1813-9450-5717
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  • 15
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    Productivity Effects of Land Rental Markets in Ethiopia : Evidence from a Matched Tenant-Landlord Sample (2011)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (35 p)
    Edition: 2011 World Bank eLibrary
    Parallel Title: Deininger, Klaus Productivity Effects of Land Rental Markets in Ethiopia
    Abstract: As countries increasingly strive to transform their economies from agriculture-based into a diversified one, land rental will become of greater importance. It will thus be critical to complement research on the efficiency of specific land rental arrangements-such as sharecropping-with an inquiry into the broader productivity impacts of the land rental market. Plot-level data for a matched landlord-tenant sample in an environment where sharecropping dominates allows this paper to explore both issues. The authors find that pure output sharing leads to significantly lower levels of efficiency that can be attenuated by monitoring while the inefficiency disappears if inputs are shared as well. Rentals transfer land to more productive producers but realization of this productivity advantage is prevented by the inefficiency of contractual arrangements, suggesting changes that would prompt adoption of different contractual arrangements could have significant benefits
    DOI: 10.1596/1813-9450-5727
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  • 16
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    What Drives the Global "Land Rush"? (2011)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (33 p)
    Edition: 2011 World Bank eLibrary
    Parallel Title: Arezki, Rabah What Drives the Global "Land Rush"?
    Abstract: The 2007-2008 upsurge in agricultural commodity prices gave rise to widespread concern about investors causing a "global land rush". Large land deals can provide opportunities for better access to capital, transfer of technology, and advances in productivity and employment generation. But they carry risks of dispossession and loss of livelihoods, corruption, deterioration in local food security, environmental damage, and long-term social polarization that led some countries to recently pass legislation restricting foreign land acquisition. To stimulate evidence-based debate, this paper explores determinants of foreign land acquisition for large-scale agriculture. It quantifies demand for land deals, showing it focused on Africa where land expansion is about 20 times the level it was in the past. The analysis uses data on bilateral investment relationships, together with newly constructed indicators of agro-ecological suitability in non-protected and forested areas with low population density as well as land rights security. It estimates gravity models that can help identify determinants of foreign land acquisition dedicated to large-scale agriculture. The results confirm the central role of agro-ecological potential as a pull factor. In contrast to the literature on foreign investment in general, the quality of the business climate is insignificant, whereas weak land governance and tenure security for current users make countries more attractive for investors. Implications for policy are discussed
    DOI: 10.1596/1813-9450-5864
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  • 17
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    Environmental and Gender Impacts of Land Tenure Regularization in Africa : Pilot Evidence from Rwanda (2011)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (31 p)
    Edition: 2011 World Bank eLibrary
    Parallel Title: Ali, Daniel Ayalew Environmental and Gender Impacts of Land Tenure Regularization in Africa
    Abstract: Although increased global demand for land has led to renewed interest in African land tenure, few models to address these issues quickly and at the required scale have been identified or evaluated. The case of Rwanda's nation-wide and relatively low-cost land tenure regularization program is thus of great interest. This paper evaluates the short-term impact (some 2.5 years after completion) of the pilots undertaken to fine-tune the approach using a geographic discontinuity design with spatial fixed effects. Three key findings emerge from the analysis. First, the program improved land access for legally married women (about 76 percent of married couples) and prompted better recordation of inheritance rights without gender bias. Second, the analysis finds a very large impact on investment and maintenance of soil conservation measures. This effect was particularly pronounced for female headed households, suggesting that this group had suffered from high levels of tenure insecurity, which the program managed to reduce. Third, land market activity declined, allowing rejection of the hypothesis that the program caused a wave of distress sales or widespread landlessness by vulnerable people. Implications for program design and policy are discussed
    DOI: 10.1596/1813-9450-5765
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  • 18
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    Going Digital : Credit Effects of Land Registry Computerization in India (2010)
    Washington, D.C : The World Bank
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    Language: English
    Pages: Online-Ressource (26 p)
    Edition: 2010 World Bank eLibrary
    Parallel Title: Goyal, Aparajita Going Digital
    Abstract: Despite strong beliefs that property titling and registration will enhance credit access, empirical evidence in support of such effects remains scant. The gradual roll-out of computerization of land registry systems across Andhra Pradesh's 387 sub-registry offices allows us to combine quarterly administrative data on credit disbursed by all commercial banks for an eleven-year period (1997-2007) aggregated to the sub-registry office level with the date of shifting registration from manual to digital. Computerization had no credit effect in rural areas but led to increased credit-supply in urban ones. A marked increase of registered urban mortgages due to computerization supports the robustness of the result. At the same time, estimated impacts from reduction of the stamp duty are much larger, suggesting that, without further changes in the property rights system, impacts of computerization will remain marginal
    DOI: 10.1596/1813-9450-5244
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  • 19
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    Inheritance Law Reform and Women's Access To Capital : Evidence From India's Hindu Succession Act (2010)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (43 p)
    Edition: 2010 World Bank eLibrary
    Parallel Title: Nagarajan, Hari Inheritance Law Reform and Women's Access To Capital
    Abstract: This paper examines whether and to what extent amendments in inheritance legislation impact women's physical and human capital investments, using disaggregated household level data from India. The authors use inheritance patterns over three generations of individuals to assess the impact of changes in the Hindu Succession Act that grant daughters equal coparcenary birth rights in joint family property that were denied to daughters in the past. The causal effect is isolated by exploiting the variation in the timing of father's death to compare within household bequests of land given to sons and daughters in the states of Maharashtra and Karnataka. The analysis shows that the amendment significantly increased daughters' likelihood to inherit land, but that even after the amendment substantial bias persists. The results also indicate a robust increase in educational attainment of daughters, suggesting an alternative channel of wealth transfer
    DOI: 10.1596/1813-9450-5338
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  • 20
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    Why Liberalization Alone Has Not Improved Agricultural Productivity in Zambia : The Role of Asset Ownership and Working Capital Constraints (2000)
    Washington, D.C : The World Bank
    Details
    Language: English
    Pages: Online-Ressource (1 online resource (28 p.))
    Edition: Online-Ausg. World Bank E-Library Archive
    Parallel Title: Deininger, Klaus Why Liberalization Alone Has Not Improved Agricultural Productivity in Zambia
    Keywords: Cred Demand ; Economic Theory and Research ; Exports ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal Policies ; GDP ; Goods ; Inputs ; Labor Policies ; Macro-Economic Policies ; Macroeconomics and Economic Growth ; Markets ; Markets and Market Access ; Overvalued Exchange Rates ; Ownership ; Prices ; Production ; Production Function ; Productive Assets ; Productivity ; Risk Aversion ; Social Protections and Labor ; Subsidies ; Total Factor Productivity ; Welfare ; Cred Demand ; Economic Theory and Research ; Exports ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal Policies ; GDP ; Goods ; Inputs ; Labor Policies ; Macro-Economic Policies ; Macroeconomics and Economic Growth ; Markets ; Markets and Market Access ; Overvalued Exchange Rates ; Ownership ; Prices ; Production ; Production Function ; Productive Assets ; Productivity ; Risk Aversion ; Social Protections and Labor ; Subsidies ; Total Factor Productivity ; Welfare ; Cred Demand ; Economic Theory and Research ; Exports ; Finance and Financial Sector Development ; Financial Literacy ; Fiscal Policies ; GDP ; Goods ; Inputs ; Labor Policies ; Macro-Economic Policies ; Macroeconomics and Economic Growth ; Markets ; Markets and Market Access ; Overvalued Exchange Rates ; Ownership ; Prices ; Production ; Production Function ; Productive Assets ; Productivity ; Risk Aversion ; Social Protections and Labor ; Subsidies ; Total Factor Productivity ; Welfare
    Abstract: March 2000 - Policies to foster accumulation of the assets needed for agricultural production (including draft animals and implements) and to provide complementary public goods (education, credit, and good agricultural extension services) could greatly help reduce poverty and improve productivity in Zambia. Deininger and Olinto use a large panel data set from Zambia to examine factors that could explain the relatively lackluster performance of the country's agricultural sector after liberalization. Zambia's liberalization significantly opened the economy but failed to alter the structure of production or help realize efficiency gains. They reach two main conclusions. First, not owning productive assets (in Zambia, draft animals and implements) limits improvements in agricultural productivity and household welfare. Owning oxen increases income directly, allows farmers to till their fields efficiently when rain is delayed, increases the area cultivated, and improves access to credit and fertilizer markets. Second, the authors reject the hypothesis that the application of fertilizer is unprofitable because of high input prices. Rather, fertilizer use appears to have declined because of constraints on supplies, which government intervention exacerbated instead of alleviating. (Extending the use of fertilizer to the many producers not currently using it would be profitable, but increasing the amount applied by the few producers who now have access to it would not be.) Policies to foster accumulation of the assets needed for agricultural production (including draft animals and implements) and to provide complementary public goods (education, credit, and good agricultural extension services) could greatly help reduce poverty and improve productivity. This paper - a product of Rural Development, Development Research Group - is part of a larger effort in the group to analyze determinants of rural growth and market participation. The authors may be contacted at kdeiningerworldbank.org or polinto@worldbank.org
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