Jann Lay / Kerstin Nolte / Kacana Sipangule

Large-Scale Farms and Smallholders: Evidence from Zambia

GIGA Working Paper, No. 310, February 2018

Abstract
In light of the surge in large‐scale farms in developing countries, concerns have been raised that smallholders may be negatively affected. There is, however, very little evidence beyond case studies to support these claims. Drawing on nationally representative household data sets and an inventory of large‐scale farms in Zambia, this study investigates the relationship between large‐scale farms and smallholders. First, we analyse the geographical contexts of wards that host large-scale farms and show that large-scale farms are found in wards with good infrastructure and soil quality. Second, we adopt a difference-in-differences approach to estimate the impacts of large‐scale farms on smallholders’ area cultivated, maize yields, and access to fertiliser. We find that smallholders in wards with large-scale farms increase their area cultivated and maize yields, but have lower fertiliser usage. This hints at positive spillovers at the extensive and intensive margins but not at improved access to agricultural inputs. It is likely that these results are also driven by the emergence of medium‐scale farms in these regions.

Related Research at the GIGA

Related Research Tabs

GIGA Authors

Apl. Prof. Dr. Jann Lay is head of GIGA Research Programme 3 “Growth and Development.” He is also an adjunct professor of development economics at the University of Göttingen. His research interests encompass various aspects of economic development in the Global South and Africa in particular, including (informal) employment and labour markets, the effects of so-called “land grabs”, and energy- and climate-related topics.

Dr. Kerstin Nolte is a postdoctoral researcher at the GIGA Institute of African Affairs and Speaker of the Research Team Sustainable Development of GIGA Research Programme 3: Growth and Development.

Recent Publications by the Authors

Sebastian Renner / Jann Lay / Michael Schleicher

The effects of energy price changes: heterogeneous welfare impacts and energy poverty in Indonesia

Environment and Development Economics, 24, 2019, 2, 180-200

Claudia Dislich / Elisabeth Hettig / Jan Salecker / Johannes Heinonen / Jann Lay / Katrin M. Meyer / Kerstin Wiegand / Suria Tarigan

Land-use change in oil palm dominated tropical landscapes: an agent-based model to explore ecological and socio-economic trade-offs

PLOS ONE, 2018

Insa Flachsbarth / Simone Schotte / Jann Lay / Alberto Garrido

Rural structural change, poverty and income distribution: evidence from Peru

The Journal of Economic Inequality, 16, 2018, 4, 631-653

Sebastian Renner / Jann Lay / Hannes Greve

Household welfare and CO2 emission impacts of energy and carbon taxes in Mexico

Energy Economics, 72, 2018, 222-235