IDEAS home Printed from https://ideas.repec.org/a/eee/deveco/v99y2012i2p236-243.html
   My bibliography  Save this article

Going digital: Credit effects of land registry computerization in India

Author

Listed:
  • Deininger, Klaus
  • Goyal, Aparajita

Abstract

By improving access, without altering the underlying information, computerization of land registration provides a unique case to test for credit supply effects of improved land administration that have often been elusive in the literature. We exploit the variation in the timing of the shift from manual to digital operation of Andhra Pradesh's 387 subregistry offices during the state-wide rollout of this intervention between 1999 and 2005. Administrative data on credit disbursed and registered land transactions from 1995 to 2007 point to significant, though quantitatively modest, increases in credit access in urban but not rural areas. Institutional factors allow us to explain these results.

Suggested Citation

  • Deininger, Klaus & Goyal, Aparajita, 2012. "Going digital: Credit effects of land registry computerization in India," Journal of Development Economics, Elsevier, vol. 99(2), pages 236-243.
    • Handle: RePEc:eee:deveco:v:99:y:2012:i:2:p:236-243
    DOI: 10.1016/j.jdeveco.2012.02.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304387812000181
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jdeveco.2012.02.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Besley, Timothy & Ghatak, Maitreesh, 2010. "Property Rights and Economic Development," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4525-4595, Elsevier.
    2. Jean O. Lanjouw & Philip I. Levy, 2002. "Untitled: A Study of Formal and Informal Property Rights in Urban Ecuador," Economic Journal, Royal Economic Society, vol. 112(482), pages 986-1019, October.
    3. World Bank, 2007. "India - Land Policies for Growth and Poverty Reduction," World Bank Publications - Reports 7818, The World Bank Group.
    4. Deininger, Klaus & Jin, Songqing, 2006. "Tenure security and land-related investment: Evidence from Ethiopia," European Economic Review, Elsevier, vol. 50(5), pages 1245-1277, July.
    5. James Fenske, 2010. "L’Étranger: Status, Property Rights, and Investment Incentives in Côte d’Ivoire," Land Economics, University of Wisconsin Press, vol. 86(4), pages 621-644.
    6. Arrunada, Benito, 2007. "Pitfalls to avoid when measuring institutions: Is Doing Business damaging business?," Journal of Comparative Economics, Elsevier, vol. 35(4), pages 729-747, December.
    7. Michael R. Carter & Pedro Olinto, 2003. "Getting Institutions “Right” for Whom? Credit Constraints and the Impact of Property Rights on the Quantity and Composition of Investment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 173-186.
    8. Stephen R. Boucher & Michael R. Carter & Catherine Guirkinger, 2008. "Risk Rationing and Wealth Effects in Credit Markets: Theory and Implications for Agricultural Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 409-423.
    9. Timothy J. Besley & Konrad B. Burchardi & Maitreesh Ghatak, 2012. "Incentives and the De Soto Effect," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 237-282.
    10. World Bank, 2007. "India : Land Policies for Growth and Poverty Reduction," World Bank Publications - Books, The World Bank Group, number 15791, December.
    11. Abhijit Banerjee & Lakshmi Iyer, 2005. "History, Institutions, and Economic Performance: The Legacy of Colonial Land Tenure Systems in India," American Economic Review, American Economic Association, vol. 95(4), pages 1190-1213, September.
    12. Galiani, Sebastian & Schargrodsky, Ernesto, 2004. "Effects of land titling on child health," Economics & Human Biology, Elsevier, vol. 2(3), pages 353-372, December.
    13. Boucher, Stephen R. & Carter, Michael R. & Guirkinger, Catherine, 2008. "AJAE Appendix: Risk Rationing and Wealth Effects in Credit Markets: Theory and Implications for Agriculture Development," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 90(2), pages 1-6.
    14. Galiani, Sebastian & Schargrodsky, Ernesto, 2010. "Property rights for the poor: Effects of land titling," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 700-729, October.
    15. Sebastian Galiani & Ernesto Schargrodsky, 2004. "The Health Effects of Land Titling," Working Papers 78, Universidad de San Andres, Departamento de Economia, revised Dec 2004.
    16. Markus Goldstein & Christopher Udry, 2008. "The Profits of Power: Land Rights and Agricultural Investment in Ghana," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 981-1022, December.
    17. Hanan G. Jacoby & Guo Li & Scott Rozelle, 2002. "Hazards of Expropriation: Tenure Insecurity and Investment in Rural China," American Economic Review, American Economic Association, vol. 92(5), pages 1420-1447, December.
    18. Panagariya, Arvind, 2011. "India: The Emerging Giant," OUP Catalogue, Oxford University Press, number 9780199751563, Decembrie.
    19. Fenske, James, 2011. "Land tenure and investment incentives: Evidence from West Africa," Journal of Development Economics, Elsevier, vol. 95(2), pages 137-156, July.
    20. Field, Erica Marie, 2005. "Property Rights and Investment in Urban Slums," Scholarly Articles 3634150, Harvard University Department of Economics.
    21. Erica Field, 2007. "Entitled to Work: Urban Property Rights and Labor Supply in Peru," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(4), pages 1561-1602.
    22. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-548, June.
    23. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    24. Erica Field, 2005. "Property Rights and Investment in Urban Slums," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 279-290, 04/05.
    25. Quy-Toan Do & Lakshmi Iyer, 2008. "Land Titling and Rural Transition in Vietnam," Economic Development and Cultural Change, University of Chicago Press, vol. 56(3), pages 531-579, April.
    26. Scott Rozelle & Johan F.M. Swinnen, 2004. "Success and Failure of Reform: Insights from the Transition of Agriculture," Journal of Economic Literature, American Economic Association, vol. 42(2), pages 404-456, June.
    27. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-937, October.
    28. Oriana Bandiera, 2007. "Land Tenure, Investment Incentives, and the Choice of Techniques: Evidence from Nicaragua," The World Bank Economic Review, World Bank, vol. 21(3), pages 487-508, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Deininger, Klaus & Ali, Daniel Ayalew & Alemu, Tekie, 2008. "Impacts of land certification on tenure security, investment, and land markets : evidence from Ethiopia," Policy Research Working Paper Series 4764, The World Bank.
    2. Ali, Daniel Ayalew & Deininger, Klaus & Goldstein, Markus, 2014. "Environmental and gender impacts of land tenure regularization in Africa: Pilot evidence from Rwanda," Journal of Development Economics, Elsevier, vol. 110(C), pages 262-275.
    3. Daniel Ayalew Ali & Klaus Deininger & Markus Goldstein, 2011. "Environmental and Gender Impacts of Land Tenure Regularization in Africa," World Bank Other Operational Studies 25527, The World Bank.
    4. Ali, Daniel Ayalew & Deininger, Klaus & Mahofa, Godfrey & Nyakulama, Rhona, 2021. "Sustaining land registration benefits by addressing the challenges of reversion to informality in Rwanda," Land Use Policy, Elsevier, vol. 110(C).
    5. Deininger, Klaus, 2010. "Towards sustainable systems of land administration: Recent evidence and challenges for Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 5(1), pages 1-22, September.
    6. Macours, Karen & Janvry, Alain de & Sadoulet, Elisabeth, 2010. "Insecurity of property rights and social matching in the tenancy market," European Economic Review, Elsevier, vol. 54(7), pages 880-899, October.
    7. de Janvry, Alain & Emerick, Kyle & Gonzalez-Navarro, Marco & Sadoulet, Elisabeth, 2012. "Certified to Migrate: Property Rights and Migration in Rural Mexico," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt1jk3m3c1, Department of Agricultural & Resource Economics, UC Berkeley.
    8. Liesbet Vranken & Karen Macours & Nivelin Noev & Johan Swinnen, 2007. "Property Rights Imperfections, Asset Allocation, and Welfare: Co-Ownership in Bulgaria," LICOS Discussion Papers 18007, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    9. Lai, Yani & Wang, Jiayuan & Lok, Waiming, 2017. "Redefining property rights over collective land in the urban redevelopment of Shenzhen, China," Land Use Policy, Elsevier, vol. 69(C), pages 485-493.
    10. Galiani Sebastian & Schargrodsky Ernesto, 2016. "The Deregularization of Land Titles," Man and the Economy, De Gruyter, vol. 3(2), pages 169-188, December.
    11. Ayalew, Hailemariam & Admasu, Yeshwas & Chamberlin, Jordan, 2021. "Is land certification pro-poor? Evidence from Ethiopia," Land Use Policy, Elsevier, vol. 107(C).
    12. Vranken, Liesbet & Macours, Karen & Noev, Nivelin & Swinnen, Johan, 2011. "Property rights imperfections and asset allocation: Co-ownership in Bulgaria," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 159-175, June.
    13. Sebastian Galiani & Ernesto Schargrodsky, 2011. "Land Property Rights and Resource Allocation," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 329-345.
    14. Ho, Hoang-Anh, 2021. "Land tenure and economic development: Evidence from Vietnam," World Development, Elsevier, vol. 140(C).
    15. Galiani, Sebastian, 2011. "The Dynamics of Land Titling Regularization and Market Development," WIDER Working Paper Series 088, World Institute for Development Economic Research (UNU-WIDER).
    16. Zhou, Nan & Cheng, Wenli & Zhang, Longyao, 2022. "Land rights and investment incentives: Evidence from China’s Latest Rural Land Titling Program," Land Use Policy, Elsevier, vol. 117(C).
    17. Gottlieb, Charles & Grobovšek, Jan, 2019. "Communal land and agricultural productivity," Journal of Development Economics, Elsevier, vol. 138(C), pages 135-152.
    18. Jérémie GIGNOUX & Karen MACOURS & Liam WREN-LEWIS, 2015. "Impact of land administration programs on agricultural productivity and rural development: existing evidence, challenges and new approaches," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 96(3), pages 467-498.
    19. Besley, Timothy & Ghatak, Maitreesh, 2009. "The de Soto effect," LSE Research Online Documents on Economics 25429, London School of Economics and Political Science, LSE Library.
    20. Italo A. Gutierrez & Oswaldo Molina, 2020. "Reverting to Informality: Unregistered Property Transactions and the Erosion of the Titling Reform in Peru," Economic Development and Cultural Change, University of Chicago Press, vol. 69(1), pages 317-334.

    More about this item

    Keywords

    Land registration; Credit; Transactions; Information; Technology; India;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:99:y:2012:i:2:p:236-243. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/devec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.