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Land tenure security and agrarian investments in the Peruvian Highlands

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  • Navarro-Castañeda, Sandro
  • Arranz, José M.
  • Burguillo, Mercedes
  • Colla De Robertis, Esteban

Abstract

The abundant empirical studies on the relationship between land tenure security and investment remain inconclusive. This work sheds light on this issue, estimating a simultaneous equation model of 9 different types of land investments and land tenure security using data from the Peruvian agrarian census. This study analyzed the case of the Peruvian highlands, which could be a suitable case study for discussing the importance of land tenure security and land tilting programs on rural development in developing countries due to its agrarian-based economic characteristics and for having an official land-titling program (the PETT). We found that tenure security was significantly and positively related to five land investments among the nine analyzed; however, the size of these effects is small, so its importance is lower than what it is a priori expected on institutional grounds. The effects were also negative for two investments for which customs seemed to be a good way of land management. Land-titling programs in developing countries seem to be a necessary but not sufficient policy approach to promote rural development. Our results indicate that where customs are functioning well, land-titling programs can be complement to but not a substitute for these customary institutions. The impacts of other socio-economic variables suggest that public programs promoting education and training as well as gender equality are important for the promotion of rural development.

Suggested Citation

  • Navarro-Castañeda, Sandro & Arranz, José M. & Burguillo, Mercedes & Colla De Robertis, Esteban, 2021. "Land tenure security and agrarian investments in the Peruvian Highlands," Land Use Policy, Elsevier, vol. 109(C).
    • Handle: RePEc:eee:lauspo:v:109:y:2021:i:c:s0264837721003744
    DOI: 10.1016/j.landusepol.2021.105651
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    References listed on IDEAS

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