Land reform can improve both equity and efficiency in an eco

Land reform can improve both equity and efficiency in an economy. Explain

Solution

Land reform involves the changing of regulations, laws or customs in regard to ownership of land. It may consist of government-initiated or government-backed property redistribution, usually agricultural land. These have a positive and significant impact on income growth and accumulation of human and physical capital. Land reform can help in increasing efficiency, reducing poverty, and establish the basis of sustained growth, thus leading to both equity and efficiency in an economy. Conversely the inequality in the land distribution is associated with low economic growth