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Efficiency and Equity of Rural Land Markets and the Impact on Income: Evidence in Kenya and Uganda from 2003 to 2015 TABETANDO, Rayner KIJIMA, Yoko Land markets Agriculture Poverty Uganda Kenya https://www.grips.ac.jp/list/jp/facultyinfo/kijima-yoko/ This study examines the evolution and impact of land sales and rental markets on agricultural efficiency in rural Kenya and Uganda using panel data spanning over 10 years. We first analyse the efficiency gains induced by land sales and rental markets by estimating the impact of participation in markets on unobserved farmer ability and land endowment. We do find evidence in both countries, that land markets induce efficiency by transferring land to households with higher farming ability. In both countries, the land market enhances equity by transferring land from land-abundant to land-constrained households. Although renting-in land increases crop income in Kenya, we find no evidence that renting in land enables households to escape from poverty. In contrast, increase in land owned helped decrease poverty incidence in Uganda. These findings points to potential weaknesses in the functioning of land markets in Kenya and Uganda which impedes their ability to contribute to poverty alleviation. JEL Classification Codes: D63, O12, Q15 This study was supported by : Grant-in-Aid for Scientific Research (Overseas Academic Research) (JSPS KAKENHI Grant Number 15H02619) and the GRIPS Emerging State Project of the Japan Society for the Promotion of Science (JSPS KAKENHI Grant Number 25101002) GRIPS Policy Research Center 2019-06-28 eng technical report AM https://doi.org/10.24545/00001685 https://grips.repo.nii.ac.jp/records/1697 10.24545/00001685 https://ideas.repec.org/p/ngi/dpaper/19-08.html https://ideas.repec.org/p/ngi/dpaper/19-08.html GRIPS Discussion Papers DP19-08 https://grips.repo.nii.ac.jp/record/1697/files/DP19-08.pdf application/pdf 650.7 kB