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Property rights and investment in agriculture: Evidence for Ghana

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  • Abdulai, Awudu
  • Owusu, Victor
  • Goetz, Renan

Abstract

This article develops a theoretical framework to examine the relationship between land tenure agreements and households’ investment in land improvement and conservation measures. It then analyzes this relationship with a multivariate probit model based on a survey data from a sample of 560 plots belonging to 246 farmers from 6 villages in the Brong-Ahafo region of Ghana. A major hypothesis tested is that investment in productivity enhancing and conservation techniques are influenced by land tenure systems. The theoretical analysis and empirical results generally reveal that land tenure differences significantly influence farmers’ decisions to invest in land improvement and conservation measures. Furthermore, reduced-form productivity regressions show that tenure differences do affect land productivity.

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File URL: http://mpra.ub.uni-muenchen.de/37046/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37046.

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Date of creation: Jun 2008
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Handle: RePEc:pra:mprapa:37046

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Related research

Keywords: Land tenure; property rights; investment; optimal control; multivariate probit;

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References

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  1. Blundell, Richard W & Smith, Richard J, 1989. "Estimation in a Class of Simultaneous Equation Limited Dependent Variable Models," Review of Economic Studies, Wiley Blackwell, vol. 56(1), pages 37-57, January.
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  13. F. Place & K. Otsuka, 2002. "Land Tenure Systems and Their Impacts on Agricultural Investments and Productivity in Uganda," The Journal of Development Studies, Taylor and Francis Journals, vol. 38(6), pages 105-128.
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Cited by:
  1. Fenske, James, 2011. "Land tenure and investment incentives: Evidence from West Africa," Journal of Development Economics, Elsevier, vol. 95(2), pages 137-156, July.

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