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Network Effects and Land Redistribution: A Natural Experiment in Zimbabwe

Tara McIndoe Calder

IIIS Discussion Paper No. 352


The paper investigates whether positive network e ects may have ex isted between large-scale commercial farmers and small-scale communal farmers prior to the recent land redistribution in Zimbabwe. A di erence- in-di erence approach is used where measurement is carried out using several data sources including farm level, geographic and survey infor mation for cotton farmers in Mashonaland Central. It tests whether the removal of large-scale farmers has resulted in a decline in productivity for those small-scale farmers close to redistributed land as compared to those located at greater distances from large-scale/commercial farms. A signi cant negative productivity e ect is found in addition to a country- wide negative redistribution e ect. The latter is most likely due to wider economic and political instability over the last 10 years.I

Keywords: Land redistribution, network e ects, cotton farming, agricultural productivity, Zimbabwe
JEL Codes: Q12, Q15, O17, O33, N57

Last updated 28 August 2014 by IIIS (Email).