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Tenure security and land-related investment - evidence from Ethiopia

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Author Info
Deininger, Klaus
Jin, Songqing
Adenew, Berhanu
Gebre-Selassie, Samuel
Nega, Berhanu

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Abstract

The authors use a large data set from Ethiopia that differentiates tenure security and transferability to explore determinants of different types of land-related investment and its possible impact on productivity. While they find some support for endogeneity of investment in trees, this is not the case for terraces. Transfer rights are unambiguously investment-enhancing. The large productivity effect of terracing implies that, even where households undertake investments to increase their tenure security, this may not be socially efficient. In Ethiopia, government action to increase tenure security and transferability of land rights can significantly enhance rural investment and productivity.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2991.

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Date of creation: 31 Mar 2003
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Handle: RePEc:wbk:wbrwps:2991

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Keywords: Land and Real Estate Development Environmental Economics&Policies Municipal Housing and Land Labor Policies Payment Systems&Infrastructure Environmental Economics&Policies Municipal Housing and Land Banks&Banking Reform Land and Real Estate Development RealEstate Development

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Katleen Van den Broeck & Carol Newman & Finn Tarp, 2007. "Land Titles and Rice Production in Vietnam," Trinity Economics Papers tep1207, Trinity College Dublin, Department of Economics. [Downloadable!]
    Other versions:
  2. Zevenbergen, Jaap & Holden, Stein & Ali, Daniel Ayalew & Deininger, Klaus, 2007. "Rural land certification in Ethiopia : process, initial impact, and implications for other African countries," Policy Research Working Paper Series 4218, The World Bank. [Downloadable!]
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