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Does Title Increase Large Farm Productivity ? Institutional Determinants of Large Land-BasedInvestments’ Performance in Zambia

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  • Ali,Daniel Ayalew
  • Deininger,Klaus W.

Abstract

The importance of well-functioning land markets for structural transformation via labormovements to the non-agricultural sector, growth in farm size, and the ability to use land as collateral for creditand has long motivated Government efforts at reducing the transaction costs of registering and transferring land andsupporting large farm formation. Rigorous evidence on the effect of such measures has, however, been scant. This paperexplores the impact of institutional arrangements on productivity for a representative sample of 3,000 largefarms in Zambia, one of the earliest African adopters of such policies to close this gap. Instrumental-variable (IV)regressions suggest title has no effect on productivity, investment, or credit access and reduces rather thanimproves rental market participation. Measures to harness Zambia’s potential include improving title quality throughexclusive use of digital registries; imposition of a land tax on state land to incentivize productive rather thanspeculative land use and cancel outdated legacy documents; and greater involvement of traditional authorities in recordmaintenance and land management, possibly via land tax revenue sharing.

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  • Ali,Daniel Ayalew & Deininger,Klaus W., 2021. "Does Title Increase Large Farm Productivity ? Institutional Determinants of Large Land-BasedInvestments’ Performance in Zambia," Policy Research Working Paper Series 9702, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9702
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    1. Ali, Daniel Ayalew & Deininger, Klaus, 2021. "Does title increase large farm productivity? Institutional determinants of large land-based investments' performance in Zambia," 2021 Conference, August 17-31, 2021, Virtual 315328, International Association of Agricultural Economists.
    2. Marii Rasva & Evelin Jürgenson, 2022. "Europe’s Large-Scale Land Acquisitions and Bibliometric Analysis," Agriculture, MDPI, vol. 12(6), pages 1-13, June.

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