Kinship, transaction costs and land rental market participation
With land being the main source of income for many people in the developing world, security of access or ownership rights is imperative to the alleviation of rural povety. Past polices of land redistribution, prohibition of land renting and later legalisation of short-term contracts only, may have prevented or undermined tenancy markets in Ethiopia. This paper examines the allocative efficiency of the land rental market in Northern Ethiopia, and the extent to which adjustment in the tenancy market is constrained by transaction costs.