Restoring Property rights: The Effects of Land Restitution on access to credit

Francesco Bogliacino, Christian Posso Suarez () and Juanita Villaveces

No ch6mk, SocArXiv from Center for Open Science

Abstract: We estimate the causal effect of the Law mandating land restitution to victims of forced displacement in Colombia. We use the timing of the restitution as the source of identification in an event study approach. Farmers typically rely on small to medium-sized loans with limited or no collateral to finance their investments, thus we employ microcredit as our main outcome variable. We analyze administrative data from the program, along with data from the census of credit transactions. Our findings reveal a substantial increase in access to credit, both in terms of the likelihood of signing a loan (extensive margin) and the loan amounts (intensive margin). These effects are most pronounced two years after land restitution, coinciding with the moment individuals gain full property rights. By delving into the specific details of these credit transactions, we ascertain that the credits obtained are primarily directed towards agricultural investments. This suggests that the increased access to credit is likely being used to finance material investments in the restored land parcels.

Date: 2023-09-21
New Economics Papers: this item is included in nep-agr, nep-ban, nep-dev and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://osf.io/download/6508b0a40fbdf7129b313d70/

Related works:
Working Paper: Restoring Property rights: The Effects of Land Restitution on access to credit (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:ch6mk

DOI: 10.31219/osf.io/ch6mk

Access Statistics for this paper

More papers in SocArXiv from Center for Open Science
Bibliographic data for series maintained by OSF ().