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Land Tenure Insecurity as an Investment Incentive: The Case of Migrant Cocoa Farmers and Settlers in Ivory Coast

Author

Listed:
  • Catherine Bros

    (UPEM - Université Paris-Est Marne-la-Vallée)

  • Alain Desdoigts

    (UP1 - Université Paris 1 Panthéon-Sorbonne)

  • Hugues Kouadio

    (ENSEA - Ecole nationale supérieure de statistique et d'économie appliquée [Abidjan])

Abstract

This study sets forth a positive relationship between tenure insecurity and investments over different time horizons among cocoa farmers in Ivory Coast. This positive relationship stands in stark contrast to results found in many related studies. We argue this difference stems from the type of crops considered and, in particular, whether one considers annual and/or perennial crops. Given that cultivating perennial crops such as cocoa requires large upfront investments over a long period of time, it is of paramount importance to retain control over the land in the long run, especially when the trees reach full maturity. According to some theoretical arguments, investing is a way to retain such control when the farmer does not have administrative rights. Our results show that cocoa farmers whose status remains precarious in terms of tenure security (migrants) have a higher propensity to invest, especially when the tree is about to yield substantially. This study thus underlines the need to account for the life cycle of crops and the associated revenue streams when assessing the relationship between tenure (in-)security and investment.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Catherine Bros & Alain Desdoigts & Hugues Kouadio, 2019. "Land Tenure Insecurity as an Investment Incentive: The Case of Migrant Cocoa Farmers and Settlers in Ivory Coast," Post-Print halshs-04841543, HAL.
    • Handle: RePEc:hal:journl:halshs-04841543
    DOI: 10.1093/jae/ejy019
    as

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    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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