Effects of land tenure rights formalization on household investments – The case of PRODEP in Nicaragua

This study analyses the impacts of titling on tenure security, property value, access to credit, and household investments in the departments of Nueva Segovia, Jinotega y Chinandega, which are covered by Nicaragua’s Land Administration Programme (PRODEP). The programme has been in operation for over two decades, prioritized and sustained by the national government, International Financial Institutions, and other donors, targeting the poorest and most vulnerable households. Using quasi-experimental econometric techniques, namely propensity score techniques, and instrumental variables, we find that titling obtained through PRODEP, either individually or jointly, has significantly contributed to an increase in beneficiaries’ perception of both land tenure security and increased land value. We also find that the perception of an increase in owners’ land value was higher for women covered by the later phase of the program. While the overall findings are encouraging, we suggest that potential investments in land and housing by landowners be further enhanced through strengthening synergies with complementary programmes for local economic development, housing, and poverty reduction.