Abstract
In a world with no uncertainty and perfect markets, where all inputs are divisible, there would be no room for tenancy in agriculture (Nabi 1985). In a perfect world, landless peasants could borrow money without collateral and purchase their own land, as opposed to being sharecroppers. In such a neoclassical world, the existence of tenancies could be explained only by the historical evolution of institutions. In the real world, however, markets are imperfect. Some factors of production are indivisible and/or not easy to market, such as cattle, machinery, and management skills. Furthermore, uncertainties exist due to weather and nature and those related to the labor market. As a result of market imperfections and the uncertainties of agricultural production, tenancy has become an important production arrangement in developing-country agriculture (Braverman and Stiglitz 1982; Byres 1983; Nabi 1985; Otsuka et al. 1993; Dasgupta et al. 1999).
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© 2012 Fatma Gül Ünal
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Ünal, F.G. (2012). Sharecropping or Fixed-Rent Tenancy?. In: Land Ownership Inequality and Rural Factor Markets in Turkey. The Economics of the Middle East. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137110886_3
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DOI: https://doi.org/10.1057/9781137110886_3
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