Efficiency and equity of customary land tenure systems in farmland allocation and implications for well-being

Timothy Mtumbuka

This paper examines the role of customary tenure systems in redistributing land resources within the context of developing countries, which face challenges such as market imperfections and land idleness. Specifically, it scrutinizes the scenario in Malawi, where the farmland market is underdeveloped, and land acquisition predominantly occurs through customary tenure systems. Using data from the National Integrated Household Panel Survey, the study employs a combination of stochastic frontier analysis (SFA) and fixed effects techniques. Research findings indicate that farmland allocation by chiefs is inefficient and does not promote equity, while land tenure through inheritance is relatively efficient and associated with equity in farmland redistribution. Furthermore, the study reveals that customary land tenure systems and land tenure through sales and rental markets have similar welfare impacts in terms of crop production and sales values.

Event: World Bank Land Conference 2024 - Washington

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Document type:Efficiency and equity of customary land tenure systems in farmland allocation and implications for well-being (498 kB - pdf)