@article{Jamal:51204,
      recid = {51204},
      author = {Jamal, Erizal and Mardiharini, Maesti},
      title = {The Choice of Land Tenure Contracts in the Presence of  Transaction Costs in Rice Farming in West Java, Indonesia.},
      address = {2009-06-17},
      number = {1005-2016-79287},
      series = {Contributed Paper},
      pages = {26},
      month = {Jun},
      year = {2009},
      abstract = {This study assessed the preference for and efficiency of  land tenure contract arrangements in rice farming in West  Java, Indonesia. Specifically, it examined the transaction  costs associated with land tenure contracts, the land  tenure contract preference, the efficiency of land tenure  contracts, and the policy agenda to address the problems of  land tenure efficiency. Three types of land tenure  contracts were considered: sharecropping, fixed rental and  mortgage.  Farm plot data were used to econometrically  investigate whether transaction cost had an effect on the  choice of land tenure contracts and on the efficiency of  land tenure contracts. The transaction cost coefficient of  0.097 (significant of 1% level) in the choice of land  tenure indicates that as the value of transaction cost  increases, the landlord will most likely choose  sharecropping. However, if the transaction cost decreases,  it is more likely that the landlord will choose mortgage or  fixed rental. These findings show that contract choice of  landlord’s is influenced by the transaction cost. The  results show that sharecropping is the more efficient land  tenure arrangement in West Java, Indonesia. Thus it does  not support the Marshallian view of sharecropping as an  inefficient land tenure arrangement. Sharecropping in the  study area is benefiting both the landlord and the tenant  farmers. Transaction cost dismisses as labor monitoring is  needed to the barest minimum and higher marginal product is  achieved. Adoption of sharecropping in West Java like  support the government program of consolidating rice farm  to attain scale in economics’ and utilization more  efficiently farm labor.  The government needs to facilitate  the dissemination of information on land transaction.},
      url = {http://ageconsearch.umn.edu/record/51204},
      doi = {https://doi.org/10.22004/ag.econ.51204},
}