This thesis seeks to investigate key drivers of the agricultural land market in a country undergoing economic structural transformation. The Ricardian land price model is extended to reflect different scenarios with regards to flexibility of land supply and competition for alternative uses for land. In addition, the study examined various non-market influences on price: (i) state intervention to determine and stabilise land supply for competing uses; (ii) transaction costs in land exchange and utilisation, and (iii) imperfect market competition arising from excess surplus situations and differences in buyer and seller characteristics. Their impacts on the agricultural land market are described via an estimation of a hedonic price model using parcel-level data (n = 2222) taken from a period of 7 years for four states in the Central West coast of Peninsular Malaysia. The data covers agricultural land with and without strong development potential. The latter comprise of land with continued oil palm, rice, rubber cultivation potentials. An additional category is vacant or idled agricultural land with relative small development potential. Results show that estimated coefficients of all land attributes in the model (road frontage, proximity to urban centres, population growth, land restrictions and year of sale) are significant. However their individual implicit value differs across different land categories. The spatial econometrics exercise was inconclusive in identifying the type and degree of spatial bias present in the data. The effect of economic transformation and expectations in the economy is further examined via a moving correlation analysis using hedonic price indexes constructed from a longer set of sales data (15 years). Price of farmland with clear development potential appears to correlate positively with value and volatility of development rent (which is proxied by the stock market property index), while price of farmland with pure agricultural potential is correlated with value and volatility of agricultural rent (proxied by the stock market plantation index).
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:546256 |
| Date | January 2011 |
| Creators | Khalid, Haniza |
| Publisher | University of Nottingham |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Source | http://eprints.nottingham.ac.uk/12252/ |
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