Land markets in Ethiopia function poorly, so land for large investments is often acquired through expropriation of small-scale farms. Recent iiG research evaluates the impact of expropriation on a group of small farmers whose land was taken to provide space for a large factory. Data collected before and after farmers lost their land and received a lump-sum compensation payment is used to examine how households cope with losing a major asset and the extent to which the lump-sum payment can be used to replace their lost income.
Harris, A. iiG Briefing Paper 26. Coping with land expropriation in rural Ethiopia. CSAE Economics Department, University of Oxford, Oxford, UK (2015) 2 pp.