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The Profits of Power: Land Rights and Agricultural Investment in Ghana

  • Markus Goldstein

    (The World Bank)

  • Christopher Udry

    (Economic Growth Center, Yale University)

We examine the impact of ambiguous and contested land rights on investment and productivity in agriculture in Akwapim, Ghana. We show that individuals who hold powerful positions in a local political hierarchy have more secure tenure rights, and that as a consequence they invest more in land fertility and have substantially higher output. The intensity of investments on different plots cultivated by a given individual correspond to that individual’s security of tenure over those specific plots, and in turn to the individual’s position in the political hierarchy relevant to those specific plots. We interpret these results in the context of a simple model of the political allocation of land rights in local matrilineages.

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Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 929.

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Length: 47 pages
Date of creation: Nov 2005
Date of revision:
Handle: RePEc:egc:wpaper:929
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  1. Timothy G. Conley & Christopher R. Udry, 2000. "Learning About a New Technology: Pineapple in Ghana," Working Papers 817, Economic Growth Center, Yale University, revised May 2004.
  2. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
  3. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
  4. Abhijit V. Banerjee & Paul J. Gertler & Maitreesh Ghatak, 2002. "Empowerment and Efficiency: Tenancy Reform in West Bengal," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 239-280, April.
  5. William Easterly & Ross Levine, 2002. "Tropics, Germs, and Crops: How Endowments Influence Economic Development," Working Papers 15, Center for Global Development.
  6. Stanley L. Engerman & Kenneth L. Sokoloff, 2003. "Institutional and Non-Institutional Explanations of Economic Differences," NBER Working Papers 9989, National Bureau of Economic Research, Inc.
  7. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal Of Fortune: Geography And Institutions In The Making Of The Modern World Income Distribution," The Quarterly Journal of Economics, MIT Press, vol. 117(4), pages 1231-1294, November.
  8. Bromley, Daniel W., 1989. "Property relations and economic development: The other land reform," World Development, Elsevier, vol. 17(6), pages 867-877, June.
  9. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  10. 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 903-37, October.
  11. Conley, T. G., 1999. "GMM estimation with cross sectional dependence," Journal of Econometrics, Elsevier, vol. 92(1), pages 1-45, September.
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