Land Tenure and Investment Incentives


Book Description

The existing literature on the relationship between property rights in land and adoption of agricultural investments in Africa has given results that are often confusing and contradictory. The present paper makes two clarifying contributions to this literature. First, it pulls together existing studies and investigates whether the results they find have been affected by research methods or local contexts. Studies with small sample sizes and those that control for the endogeneity of land rights are less likely to find a statistically significant link between land tenure and investment. Self-reported tenure security has been a poor predictor of investment outcomes, while transfer rights have had stronger effects in the literature. Second, this paper tests for a relationship between land tenure and agricultural investment in nine data sets from West Africa. While the link between tenure and investment is significant for fallow and tree planting, it is less robust for labor use and other inputs, such as manure or chemical fertilizer.













Land Tenure, Investment Incentives, and the Choice of Techniques


Book Description

The choice of cultivation techniques is a key determinant of agricultural productivity and has important consequences for income growth and poverty reduction in developing countries. Household data from Nicaragua are used to show that the choice of cultivation technique depends on farmers' tenure status even when techniques are observable and contractible. In particular, tree crops are less likely to be grown on rented than on owner-cultivated plots. Further evidence indicates that the result follows from landlords' inability or unwillingness to commit to long-term tenancy contracts rather than from agency costs due to risk aversion or limited liability.







Land Rights, Farmer Investment Incentives, and Agricultural Production in China


Book Description

The overall goal of our paper is to estimate the impact of China's land rights on farm investment incentives and agricultural production. To meet the goal, the paper pursues three specific objectives. First, the paper briefly reviews the various linkages between land rights and investment incentives. Next, we demonstrate how land use behaviour differs according to the tenure regime and land rights. Third, by using our field survey data, this paper identifies the links between specific land rights, instead of just the land tenure type, and investment incentives. The paper also measures the size of efficiency loss from the current land rights arrangements.




The Profits of Power


Book Description