Please use this identifier to cite or link to this item:

Title: Land reform with human capital: A new analysis using the theory of economic growth and the theory of the firm
Authors: Sousa, Miguel Rocha de
Keywords: Land reform
human capital
growth theory
Issue Date: 2005
Citation: Rocha de Sousa, M. (2005), Land reform with human capital: A new analysis using the theory of economic growth and the theory of the firm, Documento de Trabalho nº 2005/13, Universidade de Évora, Departamento de Economia.
Abstract: In section 1 we refer to a historical synopsis, section 2 classifies the different land reforms using KAWAGOE (1999) typology. Afterwards we link the concepts of human capital and land reform within the theory of economic growth. In section 3 a simplified formal dynamic model of land reform based on the neoclassical theory of economic growth is introduced, following SOLOW-SWAN models. In section 4 an endogenous growth model tries to evaluate land reform in the process of economic growth, based on the ROMER (1990) model. We further try to relate the notion of convergence with successful land reform. The main conclusion of these sections is that with the neoclassical exogenous framework there is convergence between small landholders and latifundia holders. This is a successful land reform: there is a finite time horizon that allows almost landless illiterate to catch up with rich literate farmers. In the case of endogenous growth there is never convergence thus the land reform process fails. Another conclusion in the endogenous framework is that, by reverse causality, failed land reforms result from perpetuating initial differential human capital stocks. In section 5, another approach is to extend ARROW (1962) learn by doing model to evaluate land reform as a structural break (or cut-off point). A condition for land reform viability is established, creating a Possibility Set of Recovery of Human Capital (PSRHC). In section 6 we simplify the theory of the firm JOVANOVIC´s (1982) model, applying it to agricultural firms to explain birth, life and death of latifundia. We establish the date and process of land reform, as a cut-off process, in which it arises from the failure of firms. Finally, in section 7, we conclude and present in section 8 the references.
Type: workingPaper
Appears in Collections:ECN - Working Papers (RePEc)

Files in This Item:

File Description SizeFormat
wp_2005_13.pdf432.67 kBAdobe PDFView/Open
FacebookTwitterDeliciousLinkedInDiggGoogle BookmarksMySpaceOrkut
Formato BibTex mendeley Endnote Logotipo do DeGóis 

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.


Dspace Dspace
DSpace Software, version 1.6.2 Copyright © 2002-2008 MIT and Hewlett-Packard - Feedback
UEvora B-On Curriculum DeGois