Land accumulation dynamics in developing country agriculture

Understanding land accumulation dynamics is relevant for policymakers interested in the economic effects of land inequality in developing country agriculture. This Working Paper explores and simultaneously tests the leading theories of microlevel land accumulation dynamics using unique panel data from Paraguay. The results suggest that farm growth varies systematically with farm size – a formal rejection of stochastic growth theories (that is, Gibrat's Law) – and that titled land area may have considerable infuence on land accumulation. Furthermore, the authors' estimates indicate that a dualistic agrarian structure is the likely product of the unfettered operation of land markets.