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Land Tenure Insecurity as an Investment Incentive: The Case of Migrant Cocoa Farmers and Settlers in Ivory Coast

Author

Listed:
  • Catherine Bros

    () (ERUDITE - Université Paris-Est)

  • Alain Desdoigts

    () (IEDES - Université Paris 1 Panthéon Sorbonne)

  • Hugues Kouassi Kouadio

    () (École nationale supérieure de statistiques et d'économie appliquée (ENSEA) Abidjan)

Abstract

This study sets forth a positive relationship between tenure insecurity and investments over dierent time horizons among cocoa farmers in Ivory Coast. This positive relationship stands in stark contrast to results found in many related studies. We argue this dierence stems from the type of crops considered and, in particular, whether one considers annual and/or perennial crops. Given that cultivating perennial crops such as cocoa requires large upfront investments over a long period of time, it is of paramount importance to retain control over the land in the long run, especially when the trees reach full maturity. According to some theoretical arguments, investing is a way to retain such control when the farmer does not have administrative rights. Our results show that cocoa farmers whose status remains precarious in terms of tenure security (migrants) have a higher propensity to invest, especially when the tree is about to yield substantially. This study thus underlines the need to account for the life cycle of crops and the associated revenue streams when assessing the relationship between tenure (in-)security and investment.

Suggested Citation

  • Catherine Bros & Alain Desdoigts & Hugues Kouassi Kouadio, 2017. "Land Tenure Insecurity as an Investment Incentive: The Case of Migrant Cocoa Farmers and Settlers in Ivory Coast," Working Papers DT/2017/12, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt201712
    as

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    File URL: http://www.dial.ird.fr/media/ird-sites-d-unites-de-recherche/dial/documents/publications/doc_travail/2017/2017-12
    File Function: First version, 2017
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    References listed on IDEAS

    as
    1. Brasselle, Anne-Sophie & Gaspart, Frederic & Platteau, Jean-Philippe, 2002. "Land tenure security and investment incentives: puzzling evidence from Burkina Faso," Journal of Development Economics, Elsevier, vol. 67(2), pages 373-418, April.
    2. Fenske, James, 2011. "Land tenure and investment incentives: Evidence from West Africa," Journal of Development Economics, Elsevier, vol. 95(2), pages 137-156, July.
    3. Edella Schlager & Elinor Ostrom, 1992. "Property-Rights Regimes and Natural Resources: A Conceptual Analysis," Land Economics, University of Wisconsin Press, vol. 68(3), pages 249-262.
    4. Banerjee, Abhijit V. & Ghatak, Maitreesh, 2004. "Eviction threats and investment incentives," Journal of Development Economics, Elsevier, vol. 74(2), pages 469-488, August.
    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. Abdulai, Awudu & Owusu, Victor & Goetz, Renan, 2011. "Land tenure differences and investment in land improvement measures: Theoretical and empirical analyses," Journal of Development Economics, Elsevier, vol. 96(1), pages 66-78, September.
    7. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-338, May.
    8. F. Place & K. Otsuka, 2002. "Land Tenure Systems and Their Impacts on Agricultural Investments and Productivity in Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 38(6), pages 105-128.
    9. 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.
    10. Place, Frank, 2009. "Land Tenure and Agricultural Productivity in Africa: A Comparative Analysis of the Economics Literature and Recent Policy Strategies and Reforms," World Development, Elsevier, vol. 37(8), pages 1326-1336, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Tenure security; investment time horizons; crop life cycle; outsiders; Ivory Coast.;

    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
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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