Abstract
Increasing commercial pressure on land may lead to land concentration in developing countries, especially in the context of complex systems of property rights. In this article we review through meta-analysis (MA) the econometric findings of the literature estimating the nexus between land inequality and economic growth. In particular, our MA controls for various features of the studies and for the so-called “publication bias”, and shows that land-inequality negatively affects economic growth, especially at low development levels. Analysis based on panel data, which generally imply a relatively short run perspective, typically report a lower or positive correlation between land inequality and growth, suggesting that the negative impact of land inequality emerges in the long run, possibly through credit constraints and institutional mechanisms.
Highlights
Economic growth and resource distribution issues have a permanent importance in the research agenda of economists and international institutions: from early World Bank analysis to recent contributions on the relationship between inequality and sustainable development in light of the financial crisis [1,2,3]
The preliminary result of our MA is that land inequality seemed to influence growth negatively: there was a trade–off between land inequality and economic growth
We reviewed the findings of the literature estimating the impact of land inequality on growth through a meta-analysis and we argue, focusing on Africa, that our topic is relevant since increasing commercial pressure on land may determine development patterns based on land concentration, with negative implications on sustainable development
Summary
Economic growth and resource distribution issues have a permanent importance in the research agenda of economists and international institutions: from early World Bank analysis to recent contributions on the relationship between inequality and sustainable development in light of the financial crisis [1,2,3]. Land inequality is a determinant of income inequality; land distribution becomes a crucial issue, mainly in countries at a low development level. The first contribution of this article is to review, through a meta-analysis (MA), previous and relevant literature analyzing the nexus between economic growth and land inequality, with the aim to highlight the implications for the contemporary debate on development, especially regarding commercial pressure on land. The second contribution is to deepen our understanding of the crucial importance of land as a factor of production, and a determinant of economic growth and sustainability, especially in rural areas of developing countries. The sustainability of development, defined as the ability to meet the needs of current generations without weakening the ability of the future generations to satisfy their own, is negatively affected by an unequal distribution of land, through the growth channel, and through its negative impact on institutions, including institutions for governance of the commons
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