Determinants of land tenure formalization under customary and statutory land tenure systems in Tanzania

Haji Msangi, Hamza Moluh Njoya, Katharina Löhr, Stefan Sieber, Betty Waized and Daniel Wilson Ndyetabula
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Hamza Moluh Njoya: Leibniz-Centre for Agricultural Landscape Research (ZALF)
Katharina Löhr: Leibniz-Centre for Agricultural Landscape Research (ZALF)
Stefan Sieber: Leibniz-Centre for Agricultural Landscape Research (ZALF)
Betty Waized: Sokoine University of Agriculture
Daniel Wilson Ndyetabula: Sokoine University of Agriculture

SN Business & Economics, 2024, vol. 4, issue 1, 1-24

Abstract: Abstract This study employs a multinomial logit model to examine the determinants of Land Tenure Formalization (LTF) under customary and statutory tenure systems using Living Standard Measurement Study-Integrated Surveys on Agriculture (LSMS-ISA) data for Tanzania’s National Panel Survey (NPS) wave of 2014/15. The findings show that household education levels, formal employment status, migrant status, and possession of dwelling certificates positively influence statutory LTF, while agricultural occupation status negatively influences statutory LTF. Conversely, household education level, farm size, and financial assistance positively influence customary LTF, while access to formal employment, the migrant status of the household head, and purchased plots negatively influence customary LTF. Taken together, these findings are suggestive of the costly and bureaucratic nature of Tanzania’s LTF systems, which potentially favour educated formal wage earners and migrants over less educated, indigenous, farmers who represent most households that derive their livelihoods directly from agriculture. The study recommends implementing land policy reforms that promote cost-effective, less bureaucratic, and inclusive systems of LTF for more socially optimal outcomes. Furthermore, since the determinants of LTF differ between tenure systems, the impact of LTF programs may also differ. This calls for future studies to explore this possibility, as it might shed light on the current debate on the conflicting results on the impact of LTF programs in many African countries.

Keywords: Land tenure formalization; Property rights; Customary tenure; Statutory tenure; Multinomial logit; Tanzania (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s43546-023-00600-7

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