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Land Property Rights and Resource Allocation

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  • Sebastian Galiani
  • Ernesto Schargrodsky

Abstract

In this paper, we review the most significant empirical literature on the causal effects of land property rights. The literature indicates that secure property rights boost investment in both rural and urban areas. These effects, however, do not appear to be the result of improved credit conditions. In rural areas, clear land rights also lead to increases in productivity and farm earnings. In contrast, for urban areas, the evidence for an effect on earnings is mixed. We find little empirical evidence to suggest that land-titling programs enhance the development of land markets. Finally, some evidence suggests that land titling induces changes in household structure that foster human capital accumulation and may help to increase the incomes of future generations.

Suggested Citation

  • 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.
    • Handle: RePEc:ucp:jlawec:doi:10.1086/661957
    DOI: 10.1086/661957
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    Cited by:

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    3. Jinqian Deng & Yue Gu & Na Zhang, 2024. "Has China’s Pilot Policy of Farmland Management Right Mortgage Loan Promoted County Agricultural Economic Growth?," Land, MDPI, vol. 13(6), pages 1-20, June.
    4. Katz-Lavigne, Sarah, 2020. "Distributional impact of corporate extraction and (un)authorised clandestine mining at and around large-scale copper- and cobalt-mining sites in DR Congo," Resources Policy, Elsevier, vol. 65(C).
    5. Douglas A. Irwin, 2020. "Adam Smith's “tolerable administration of justice” and the Wealth of Nations," Scottish Journal of Political Economy, Scottish Economic Society, vol. 67(3), pages 231-247, July.
    6. Alain de Janvry & Kyle Emerick & Marco Gonzalez-Navarro & Elisabeth Sadoulet, 2015. "Delinking Land Rights from Land Use: Certification and Migration in Mexico," American Economic Review, American Economic Association, vol. 105(10), pages 3125-3149, October.
    7. Blakeslee, David & Chaurey, Ritam & Fishman, Ram & Malik, Samreen, 2018. "Structural Transformation and Spillovers from Industrial Areas," IZA Discussion Papers 11886, Institute of Labor Economics (IZA).
    8. Subramanian, Arjunan & Kumar, Parmod, 2024. "Property rights, factor allocation and household welfare: Experimental evidence from a land titling program in India," Journal of Development Economics, Elsevier, vol. 167(C).
    9. Douglas A. Irwin, 2014. "Adam Smith's "Tolerable Administration of Justice" and the Wealth of Nations," NBER Working Papers 20636, National Bureau of Economic Research, Inc.
    10. Lu, Shenghua & Wang, Hui, 2023. "How revolving-door recruitment makes firms stand out in land market: Evidence from China," China Economic Review, Elsevier, vol. 78(C).
    11. Tseday Jemaneh Mekasha & Wilhelm Ngasamiaku & Remidius D. Ruhinduka & Finn Tarp, 2018. "Land tenure security and internal migration in Tanzania," WIDER Working Paper Series 158, World Institute for Development Economic Research (UNU-WIDER).
    12. Zehua Wang & Fachao Liang & Sheng-Hau Lin, 2023. "Can socially sustainable development be achieved through homestead withdrawal? A hybrid multiple-attributes decision analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-18, December.
    13. Valsecchi, Michele, 2014. "Land property rights and international migration: Evidence from Mexico," Journal of Development Economics, Elsevier, vol. 110(C), pages 276-290.
    14. Dan Li & Wenjing Zhong & Yitao Chen, 2022. "The Role of Farmland Titling in Urban Agricultural Resilience: Evidence from Metropolitan Guangzhou, China," Sustainability, MDPI, vol. 14(23), pages 1-20, November.
    15. Lei Xu & Shixiang Chen & Shuliu Tian, 2022. "The Mechanism of Land Registration Program on Land Transfer in Rural China: Considering the Effects of Livelihood Security and Agricultural Management Incentives," Land, MDPI, vol. 11(8), pages 1-25, August.
    16. Yang, Jidong & Liu, Cheng & Liu, Kai, 2023. "Land marketization and industrial restructuring in China," Land Use Policy, Elsevier, vol. 131(C).
    17. Laura Jaitman, 2015. "Urban infrastructure in Latin America and the Caribbean: public policy priorities," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 24(1), pages 1-57, December.
    18. Musungu, Arnold L. & Kubik, Zaneta & Qaim, Matin, 2023. "Drought Shocks and Labor Reallocation in Rural Africa: Evidence from Ethiopia," Discussion Papers 338675, University of Bonn, Center for Development Research (ZEF).
    19. Agyei-Holmes,Andrew & Buehren,Niklas & Goldstein,Markus P. & Osei,Robert Darko & Osei-Akoto,Isaac & Udry,Christopher Robert, 2020. "The Effects of Land Title Registration on Tenure Security, Investment and the Allocation of Productive Resources : Evidence from Ghana," Policy Research Working Paper Series 9376, The World Bank.
    20. Tseday Jemaneh Mekasha & Wilhelm Ngasamiaku & Remidius D. Ruhinduka & Finn Tarp, 2018. "Land tenure security and internal migration in Tanzania," WIDER Working Paper Series wp-2018-158, World Institute for Development Economic Research (UNU-WIDER).
    21. Acevedo, Manuela & Angel, Andrés & Acosta, Camilo, 2023. "Access to Formal Financial Markets and Microbusiness Formalization in Colombia," Coyuntura Económica, Fedesarrollo, vol. 53, pages 51-79, December.
    22. Pal, Sarmistha & Chowdhury, Prabal Roy & Saher, Zoya, 2021. "Land Ceiling Legislations, Land Acquisition and De-industrialisation: Theory and Evidence from the Indian States," IZA Discussion Papers 14624, Institute of Labor Economics (IZA).
    23. Kotikula, Aphichoke & Raza, Wameq Azfar, 2021. "Housing ownership Gender differences in Dhaka, Bangladesh," Land Use Policy, Elsevier, vol. 110(C).
    24. Aragón, Fernando M. & Molina, Oswaldo & Outes-León, Ingo W., 2020. "Property rights and risk aversion: Evidence from a titling program," World Development, Elsevier, vol. 134(C).
    25. Ruisheng Li & Bin Huang & Shaoquan Liu & Dingde Xu, 2024. "Land Transfer Contract and Farmers’ Straw-Returning Behavior: Evidence from Rural China," Land, MDPI, vol. 13(7), pages 1-16, June.

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