Property rights and investment in agriculture: Evidence for Ghana
AbstractThis 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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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 37046.
Date of creation: Jun 2008
Date of revision:
Land tenure; property rights; investment; optimal control; multivariate probit;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
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