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Does land titling matter? The role of land property rights in the war on illicit crops in Colombia

Juan Carlos Muñoz-Mora () and Santiago Tobón ()
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Juan Carlos Muñoz-Mora: Ecares, Universite Libre de Bruxelles

Authors registered in the RePEc Author Service: Juan Carlos Muñoz-Mora ()

No 1402, Working Papers from Departament Empresa, Universitat Autònoma de Barcelona

Abstract: This paper analyzes the role of formalization of land property rights in the war against illicit crops in Colombia. We argue that as a consequence of the increase of state presence and visibility during the period of 2000 and 2009, municipalities with a higher level of formalization of their land property rights saw a greater reduction in the area allocated to illicit crops. We hypothesize that this is due to the increased cost of growing illicit crops on formal land compared to informal, and due to the possibility of obtaining more benets in the newly installed institutional environment when land is formalized. We exploit the variation in the level of formalization of land property rights in a set of municipalities that had their first cadastral census collected in the period of 1994-2000; this selection procedure guarantees reliable data and an unbiased source of variation. Using fixed effects estimators, we found a significant negative relationship between the level of formalization of land property rights and the number of hectares allocated to coca crops per municipality. These results remain robust through a number of sensitivity analyses. Our endings contribute to the growing body of evidence on the positive effects of formal land property rights, and efective policies in the war on drugs in Colombia.

Keywords: Land property rights; Coca crops; War on drugs. (search for similar items in EconPapers)
JEL-codes: D74 F59 (search for similar items in EconPapers)
Date: 2014-02, Revised 2014-02
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Published in Working Papers at the Department of Business, March, pages 1-46

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http://www.uab.cat/doc/DOC_WP_14_02 Revised version, 2014 (application/pdf)
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Related works:
Working Paper: Does Land Titling Matter ?The Role of Land Property Rights in the War on Illicit Crops in Colombia (2014) Downloads
Working Paper: Does land titling matter? The role of land property rights in the war on illicit crops in Colombia (2014) Downloads
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