PT - JOURNAL ARTICLE AU - Tione, Sarah E. AU - Holden, Stein T. TI - Non-Convex Transaction Costs and Land Rental Market Participation in Malawi AID - 10.3368/le.98.1.062620-0092R DP - 2021 Oct 20 TA - Land Economics PG - 062620-0092R 4099 - http://le.uwpress.org/content/early/2021/10/13/le.98.1.062620-0092R.short 4100 - http://le.uwpress.org/content/early/2021/10/13/le.98.1.062620-0092R.full AB - We assess how non-convex transaction costs constrain access to and participation in the land rental market by smallholder farmers within Sub-Saharan Africa. The theory suggests a dynamic externality due to such transaction costs and that orchestrated participation can reduce such costs and enhance future participation. We use dynamic random effects probit and Tobit models with balanced panel data from Malawi to assess participation on the tenant side of the market. We observe that initial and earlier land rental market participation significantly increases participation in the subsequent years, consistent with dynamic non-convex transaction costs and possible entry barriers in the market.