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Land title, tenure security, investment and farm output: evidence from Guatemala

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  • Thomas SchweigertAuthor-Email: schweigt@uww.edu

    (University of Wisconsin-Whitewater, USA)

Abstract

Having a title to land can be associated with increased farm output for two distinct reasons. On the one hand, access to credit may require the use of land, to which there is secure title, as collateral. The classical channel through which title affects output, however, is by increasing the landholders’ tenure security and, thus, the incentive to make investments tied to the land, whether credit financed or not. The article uses household level data from Guatemala that control for the credit access channel and isolate the effect that titles are found to have higher output and yield. This can be explained as the result of greater willingness to invest family labor in the present so as to generate higher future output due to greater tenure security. Using ordered probit analysis, I find that having title substantially increases the probability that households perform quality labor tasks which are associated with higher output levels.

Suggested Citation

  • Thomas SchweigertAuthor-Email: schweigt@uww.edu, 2006. "Land title, tenure security, investment and farm output: evidence from Guatemala," Journal of Developing Areas, Tennessee State University, College of Business, vol. 40(1), pages 115-126, September.
    • Handle: RePEc:jda:journl:vol.40:year:2006:issue1:pp:115-126
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    Citations

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    Cited by:

    1. Xu Guangdong, 2013. "Property Rights, Law, and Economic Development," The Law and Development Review, De Gruyter, vol. 6(1), pages 117-142, July.
    2. Juan Zhang & Qin Chen, 2022. "The Impact of Farmland Tenure Security on China’s Agricultural Production Efficiency: A Perspective of Agricultural Production Factors," Sustainability, MDPI, vol. 14(23), pages 1-22, December.
    3. Satish Chand & Charles Yala, 2009. "Land Tenure and Productivity: Farm-Level Evidence from Papua New Guinea," Land Economics, University of Wisconsin Press, vol. 85(3), pages 442-453.

    More about this item

    Keywords

    Land title; Tenure security; Property rights; Farm households; Probit analysis;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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