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Land tenure security and investment: Does strength of land right really matter in rural Burkina Faso?

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  • Bambio, Yiriyibin
  • Bouayad Agha, Salima

Abstract

The causal relationship between land tenure security and agricultural investment plays a crucial role in the process of rural development. Land property rights are key determinants for reducing poverty through agricultural productivity, natural resource management, and socio-economic inequalities. Growing competition for land access increases the sensitivity in land socio-economic stakes and related policies in developing countries. This paper analyzes the impacts of land rights on land-related investment in rural Burkina Faso. We use rural representative panel data and appropriate methods. The Two-Stage Conditional Maximum Likelihood approach is used for dealing with endogeneity, while the Generalized Structural Equation Model allows us to control for random effects. We show that stronger land rights increase land-attached investment, and land investment has positive and negative effect on stronger and weaker land rights, respectively, in rural Burkina Faso. Our study also finds that women and immigrants have less land rights than men and natives, respectively. Our contribution to related literature includes the use of rigorous process of hierarchy in land rights. The close link of the results with land right strength is of great interest for cautious practitioners in land tenure and investment. Moreover, our results imply that a gain of efficiency can be achieved from combining practices in land tenure and investment.

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  • Bambio, Yiriyibin & Bouayad Agha, Salima, 2018. "Land tenure security and investment: Does strength of land right really matter in rural Burkina Faso?," World Development, Elsevier, vol. 111(C), pages 130-147.
  • Handle: RePEc:eee:wdevel:v:111:y:2018:i:c:p:130-147
    DOI: 10.1016/j.worlddev.2018.06.026
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    More about this item

    Keywords

    Land tenure; Property rights; Investment; Agriculture; Africa; Burkina Faso;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • 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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