The role of tenure security in farmers' decision-making on investment in improved seeds: Insights from mental models

Lisa Murken, Kati Krähnert, Karlijn Van den Broek, John Adriko and Christoph Gornott
Authors registered in the RePEc Author Service: Kati Kraehnert

No 1066, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: This paper applies a mental model approach to study the role of tenure security in farmers' decisionmaking on agricultural investment in Uganda. We investigate the role that both perceived tenure security and formal land rights, measured by the possession of land certificates, play. Our focus is on investment in improved seeds, a widely applied strategy in agricultural development and climate change adaptation. The study design leverages the roll-out of a large land demarcation and registration project, which creates exogenous variation in farmers' tenure security. Results show that, in contrast to expectations derived from economic theory, tenure security plays only a minor role in farmers' decision-making process to invest in improved seeds. Out of 15 potential factors determining a farmer's investment decision, both perceived tenure security and possession of a land certificate are among the least chosen factors, regardless of whether or not households participated in the land registration project. A heterogeneity analysis reveals that female-headed households value formalized land rights more than male-headed households.

Keywords: Agricultural investment; decision-making; land titles; mental models; tenure security (search for similar items in EconPapers)
JEL-codes: Q12 Q15 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:284401

DOI: 10.4419/96973237

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