Market failure and land concentration

Arbeitspapier

Utilizing a 2002 household-level World Bank Survey for rural Turkey, this paper explores the link between concentration of land ownership and rural factor markets. We construct a unique index that measures market malfunctioning based on the neoclassical model linking land and labor endowments through factor markets to household income. We further test whether land ownership concentration affects market malfunctioning. Our empirical investigation supports the claim that factor markets are structurally limited in reducing existing inequalities as a result of land ownership concentration. Our findings show that in the presence of land ownership inequality, malfunctioning rural factor markets result in increased land concentration, increased income inequality, and inefficient resource allocation. This work fills an important empirical gap within the development literature and establishes a positive association between asset inequality and factor market failure.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 575

Classification and Topics

• Classification: Wirtschaft ; Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets ; Agricultural Markets and Marketing; Cooperatives; Agribusiness ; Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
• Subject: market failure ; land ownership ; Turkey

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ünal, Fatma Gül
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/56976
• Last update: 10.03.2025, 11:44 AM CET