[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/sae/soudev/v16y2021i2p194-219.html
   My bibliography  Save this article

Land Acquisition, Markets and Political Networks: Evidence from the Indian Sundarbans

Author

Listed:
  • Prasenjit Sarkhel
  • Anirban Mukherjee
Abstract
In recent times, land acquisitions in India for both public and private projects are facing stiff political resistance. Existing studies on land acquisition mostly focus on optimal compensation that would secure the consent of land owners. In this article, we argue that besides compensation, membership in different types of networks such as political parties and self-help groups might influence landowner consent. This could occur either because of pro-social concerns or access to better investment opportunities for the compensation amount. Using survey data from flood prone Indian Sundarbans, where the government sought to acquire land to construct embankments, we find evidence supportive of our hypothesis. The survey elicited reservation price response from land owners for a hypothetical land acquisition program. Our estimates show that land owners with self-help group members are more likely to have a higher ask price for agreeing to land sales. In contrast, controlling for length of party association, members of political networks are more likely to sell their land and have a lower reservation price than their non-political counterparts. Our results suggest that, rather than only increasing the compensation package, which is a stock of wealth, it is equally important to enhance the flow of income to ensure consensual land sales.

Suggested Citation

  • Prasenjit Sarkhel & Anirban Mukherjee, 2021. "Land Acquisition, Markets and Political Networks: Evidence from the Indian Sundarbans," Journal of South Asian Development, , vol. 16(2), pages 194-219, August.
    • Handle: RePEc:sae:soudev:v:16:y:2021:i:2:p:194-219
    DOI: 10.1177/09731741211024874
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09731741211024874
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09731741211024874?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lori Beaman & Jeremy Magruder, 2012. "Who Gets the Job Referral? Evidence from a Social Networks Experiment," American Economic Review, American Economic Association, vol. 102(7), pages 3574-3593, December.
    2. G. Raghuram, 2015. "Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Ordinance 2014: A Process Perspective," Working Papers id:7177, eSocialSciences.
    3. Lakshmi Iyer, 2016. "Institutions, Institutional Change and Economic Performance in Emerging Markets," World Scientific Book Chapters, in: INSTITUTIONS, INSTITUTIONAL CHANGE AND ECONOMIC PERFORMANCE IN EMERGING MARKETS, chapter 1, pages 3-50, World Scientific Publishing Co. Pte. Ltd..
    4. Andrea Galeotti & Luca Paolo Merlino, 2014. "Endogenous Job Contact Networks," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(4), pages 1201-1226, November.
    5. Kolm, Serge-Christophe, 2006. "Introduction to the Economics of Giving, Altruism and Reciprocity," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 1, pages 1-122, Elsevier.
    6. Patil, Vikram & Ghosh, Ranjan & Kathuria, Vinish & Farrell, Katharine N., 2020. "Money, Land or self-employment? Understanding preference heterogeneity in landowners’ choices for compensation under land acquisition in India," Land Use Policy, Elsevier, vol. 97(C).
    7. Papke, Leslie E. & Wooldridge, Jeffrey M., 2008. "Panel data methods for fractional response variables with an application to test pass rates," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 121-133, July.
    8. Halder, Jhuma, 2016. "Educational outcome: Identifying social factors in South 24 parganas district of West Bengal," Working Papers 360, Institute for Social and Economic Change, Bangalore.
    9. Bulat Sanditov & Saurabh Arora, 2016. "Social network and private provision of public goods," Journal of Evolutionary Economics, Springer, vol. 26(1), pages 195-218, March.
    10. Sumanta Prakash Shee & Ramkrishna Maiti, 2019. "Land acquisition, livelihood and income: the case of JSW Bengal Steel Plant at Salboni Block, Paschim Medinipur, West Bengal, India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(6), pages 2997-3014, December.
    11. Bulat Sanditov & Saurabh Arora, 2016. "Social network and private provision of public goods," Grenoble Ecole de Management (Post-Print) hal-01293681, HAL.
    12. Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
    13. Bulat Sanditov & Saurabh Arora, 2016. "Social network and private provision of public goods," Journal of Evolutionary Economics, Springer, vol. 26(1), pages 195-218, March.
    14. Ghatak, Maitreesh & Mookherjee, Dilip, 2014. "Land acquisition for industrialization and compensation of displaced farmers," Journal of Development Economics, Elsevier, vol. 110(C), pages 303-312.
    15. Sarkhel, Prasenjit, 2015. "Flood risk, land use and private participation in embankment maintenance in Indian Sundarbans," Ecological Economics, Elsevier, vol. 118(C), pages 272-284.
    16. Laura Alfaro & Lakshmi Iyer & Rachna Tahilyani, 2016. "Land Acquisition in India: Public Purpose and Private Property (C)," World Scientific Book Chapters, in: INSTITUTIONS, INSTITUTIONAL CHANGE AND ECONOMIC PERFORMANCE IN EMERGING MARKETS, chapter 4, pages 95-108, World Scientific Publishing Co. Pte. Ltd..
    17. Madhav Gadgil & Ramachandra Guha, 1994. "Ecological Conflicts and the Environmental Movement in India," Development and Change, International Institute of Social Studies, vol. 25(1), pages 101-136, January.
    18. Raghuram, G. & Simy Sunny, 2015. "Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Ordinance 2014: A Process Perspective," IIMA Working Papers WP2015-07-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    19. Das, Upasak, 2015. "Does Political Activism and Affiliation Affect Allocation of Benefits in the Rural Employment Guarantee Program: Evidence from West Bengal, India," World Development, Elsevier, vol. 67(C), pages 202-217.
    20. Shylashri Shankar & Raghav Gaiha & Raghbendra Jha, 2011. "Information, Access and Targeting: The National Rural Employment Guarantee Scheme in India," Oxford Development Studies, Taylor & Francis Journals, vol. 39(1), pages 69-95.
    21. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    22. Bulat Sanditov & Saurabh Arora, 2016. "Social network and private provision of public goods," Post-Print hal-01293681, HAL.
    23. Maitreesh Ghatak & Parikshit Ghosh, 2011. "The Land Acquisition Bill-- A Critique and a Proposal," Working papers 204, Centre for Development Economics, Delhi School of Economics.
    24. Fernandez, Raquel & Rodrik, Dani, 1991. "Resistance to Reform: Status Quo Bias in the Presence of Individual-Specific Uncertainty," American Economic Review, American Economic Association, vol. 81(5), pages 1146-1155, December.
    25. Diego Maiorano & Upasak Das & Silvia Masiero, 2018. "Decentralisation, clientelism and social protection programmes: a study of India’s MGNREGA," Oxford Development Studies, Taylor & Francis Journals, vol. 46(4), pages 536-549, October.
    26. Poulomi Bhattacharya & K. N. Ninan, 2011. "Social cost‐benefit analysis of intensive versus traditional shrimp farming: A case study from India," Natural Resources Forum, Blackwell Publishing, vol. 35(4), pages 321-333, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Djula Borozan & Mirjana Radman Funaric, 2018. "The Impact of Disaggregated Social Capital on Household Electricity Intensity," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 16(2), pages 189-207.
    2. Patil, Vikram & Ghosh, Ranjan & Kathuria, Vinish & Farrell, Katharine N., 2020. "Money, Land or self-employment? Understanding preference heterogeneity in landowners’ choices for compensation under land acquisition in India," Land Use Policy, Elsevier, vol. 97(C).
    3. María Paz Espinosa & Jaromír Kovárík & Sofía Ruíz-Palazuelos, 2021. "Are close-knit networks good for employment?," Working Papers 21.06, Universidad Pablo de Olavide, Department of Economics.
    4. Nguimkeu, Pierre & Zeufack, Albert, 2024. "Manufacturing in structural change in Africa," World Development, Elsevier, vol. 177(C).
    5. Alessandro Barattieri & Matteo Cacciatore, 2023. "Self-Harming Trade Policy? Protectionism and Production Networks," American Economic Journal: Macroeconomics, American Economic Association, vol. 15(2), pages 97-128, April.
    6. Meyer, Ina & Kaniovski, Serguei & Scheffran, Jürgen, 2012. "Scenarios for regional passenger car fleets and their CO2 emissions," Energy Policy, Elsevier, vol. 41(C), pages 66-74.
    7. Nicole M. Mason & Thomas S. Jayne & Nicolas van de Walle, 2017. "The Political Economy of Fertilizer Subsidy Programs in Africa: Evidence from Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 705-731.
    8. Amat Adarov & Robert Stehrer, 2020. "Capital dynamics, global value chains, competitiveness and barriers to FDI and capital accumulation in the EU," JRC Research Reports JRC121096, Joint Research Centre.
    9. Costa-Font, Joan & Vilaplana-Prieto, Cristina, 2022. "Health shocks and housing downsizing: How persistent is ‘ageing in place’?," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 490-508.
    10. Céline Nauges & Jon Strand, 2017. "Water Hauling and Girls’ School Attendance: Some New Evidence from Ghana," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(1), pages 65-88, January.
    11. Øien Henning, 2013. "Do Local Governments Respond to (Perverse) Financial Incentives in Long-Term Care Funding Schemes?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(2), pages 525-549, August.
    12. Leila Bengali & Mary C. Daly & Olivia Lofton & Robert G. Valletta, 2021. "The Economic Status of People with Disabilities and Their Families since the Great Recession," The ANNALS of the American Academy of Political and Social Science, , vol. 695(1), pages 123-142, May.
    13. Guccio, C. & Lisi, D., 2014. "Social interactions in inappropriate behavior for childbirth services: Theory and evidence from the Italian hospital sector," Health, Econometrics and Data Group (HEDG) Working Papers 14/28, HEDG, c/o Department of Economics, University of York.
    14. Grohmann, Antonia & Klühs, Theres & Menkhoff, Lukas, 2018. "Does financial literacy improve financial inclusion? Cross country evidence," World Development, Elsevier, vol. 111(C), pages 84-96.
    15. Galor, Oded & Klemp, Marc, 2014. "The Biocultural Origins of Human Capital Formation," IZA Discussion Papers 8433, Institute of Labor Economics (IZA).
    16. Nicholas Sly & Caroline Weber, 2015. "Global tax policy and the synchronization of business cycles," Research Working Paper RWP 15-7, Federal Reserve Bank of Kansas City.
    17. Ligthart, Jenny E. & Werner, Sebastian E.V., 2012. "Has the euro affected the choice of invoicing currency?," Journal of International Money and Finance, Elsevier, vol. 31(6), pages 1551-1573.
    18. Leif Brandes & Marc Brechot & Egon Franck, 2011. "The Temptation of Social Ties: When Interpersonal Network Transactions Hurt Firm Performance," Working Papers 00159, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2012.
    19. Baccini, Leonardo & Impullitti, Giammario & Malesky, Edmund J., 2019. "Globalization and state capitalism: Assessing Vietnam's accession to the WTO," Journal of International Economics, Elsevier, vol. 119(C), pages 75-92.
    20. Jaya Prakash Pradhan & Mohammad Zohair, 2015. "Subnational Export Performance and Determinants," Review of Market Integration, India Development Foundation, vol. 7(2), pages 133-174, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:soudev:v:16:y:2021:i:2:p:194-219. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.