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Evaluating the Impact of Land Tenure and Titling on Access to Credit in Uganda

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  • Petracco, Carly K.
  • Pender, John L.

Abstract

Increasing smallholder farmers’ access to credit is a paramount concern in Africa in general and in Uganda in particular, as a means to help modernize agriculture. We use matching impact evaluation methods to assess four pair-wise comparisons: i) households who have freehold land with vs. without a title, ii) households who have customary land with vs. without a customary certificate, iii) households with a title or certificate having freehold vs. customary tenure, and iv) households without a title or certificate having freehold vs. customary tenure. Each comparison is then evaluated for the impact on access to any form of credit, formal credit and informal credit. Two matching methods were used and the results compared to test the robustness of the conclusions. The only statistically significant finding is a positive impact on access to credit of households with freehold without title over customary holders without a certificate. The results imply that tenure rights, rather than title to those rights, affect credit access for rural households in Uganda. The fact that access to informal credit is increased by freehold tenure status, even without a title, suggests that informal lenders use the tenure status as a screening device, rather than as recoverable collateral.

Suggested Citation

  • Petracco, Carly K. & Pender, John L., 2009. "Evaluating the Impact of Land Tenure and Titling on Access to Credit in Uganda," 2009 Conference, August 16-22, 2009, Beijing, China 51899, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae09:51899
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    Cited by:

    1. Misha Saleem, 2011. "The Effect of Ownership Rights on Urban Households' Access to Credit in Lahore," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 16(2), pages 111-139, Jul-Dec.
    2. Savath, Vivien & Fletschner, Diana & Peterman, Amber & Santos, Florence, 2014. "Land, assets, and livelihoods: Gendered analysis of evidence from Odisha State in India:," IFPRI discussion papers 1323, International Food Policy Research Institute (IFPRI).
    3. Ngore, Patrick Muthee, 2010. "Evaluation of Factors Influencing Value Addition by Butchery Agribusinesses in Igembe North District, Kenya," Research Theses 134498, Collaborative Masters Program in Agricultural and Applied Economics.

    More about this item

    Keywords

    Uganda; land tenure; land titling; rural credit; Agricultural Finance; Land Economics/Use; Q15; Q14;

    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
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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