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Does tenure insecurity explain the variations in land-related investment decisions in rural Ethiopia?

Author

Listed:
  • Muna Shifa

    (School of Economics, University of Cape Town)

  • Murray Leibbrandt

    (SALDRU, School of Economics, University of Cape Town)

  • Martin Wittenberg

    (DataFirst, School of Economics, University of Cape Town)

Abstract

We examine the relationship between land tenure security and land-related investments in rural Ethiopia. We control for both household heterogeneity and possible endogeneity of tenure security in estimating the impact of tenure security on investment. Empirical results show that variations in levels of tenure security do not explain the observed differences in investment behaviour among farm households in rural Ethiopia. In contrast, land size, access to labour and extension services, and location are seen to be important determinants of land-related investments. The results suggest that without addressing other barriers to investment, land reforms (titling) may not be sufficient to improve land-related investments.

Suggested Citation

  • Muna Shifa & Murray Leibbrandt & Martin Wittenberg, 2015. "Does tenure insecurity explain the variations in land-related investment decisions in rural Ethiopia?," SALDRU Working Papers 150, Southern Africa Labour and Development Research Unit, University of Cape Town.
    • Handle: RePEc:ldr:wpaper:150
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    More about this item

    Keywords

    Property rights; land tenure; land titling; agricultural extension services; Africa;
    All these keywords.

    JEL classification:

    • P14 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Property Rights
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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