Does tenure insecurity explain the variations in land-related investment decisions in rural Ethiopia?

Muna Shifa, Murray Leibbrandt and Martin Wittenberg

No 150, SALDRU Working Papers from Southern Africa Labour and Development Research Unit, University of Cape Town

Abstract: We examine the relationship between land tenure security and land-related investments in rural Ethiopia. We control for both household heterogeneity and possible endogeneity of tenure security in estimating the impact of tenure security on investment. Empirical results show that variations in levels of tenure security do not explain the observed differences in investment behaviour among farm households in rural Ethiopia. In contrast, land size, access to labour and extension services, and location are seen to be important determinants of land-related investments. The results suggest that without addressing other barriers to investment, land reforms (titling) may not be sufficient to improve land-related investments.

Keywords: Property rights; land tenure; land titling; agricultural extension services; Africa (search for similar items in EconPapers)
JEL-codes: P14 Q15 Q16 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-afr, nep-agr and nep-dev
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