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Titling, Credit Constraints and Rental Markets in Rural Peru: Exploring Channels and Conditioned Impacts

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  • Zegarra, Eduardo
  • Escobal, Javier
  • Aldana, Ursula

Abstract

This paper constructs a baseline and pursues an overall impact evaluation of the PETT (Programa Especial de Titulación de Tierras), an ambitious rural titling program created in Peru in 1992. The general evaluation of impacts on farmers shows a picture of not many positive effects, at least in the short period of the evaluation (2004-2006). On average, most income variables (and income composition) do not seem to be impacted by titling, and there are no detectable effects on investments or other outcome variables, such as credit, land markets, or land conflicts. However, this general picture hides important impacts that may occur for some groups of farmers, or for farmers facing different constraints in the pre-intervention stage. Given the limitations, we investigated in more detail two important channels that are behind the potential impacts of rural titling programs: credit access and use of land rental markets.

Suggested Citation

  • Zegarra, Eduardo & Escobal, Javier & Aldana, Ursula, 2008. "Titling, Credit Constraints and Rental Markets in Rural Peru: Exploring Channels and Conditioned Impacts," IDB Publications (Working Papers) 3707, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:3707
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    2. Engle Warnick James C. & Escobal Javier & Laszlo Sonia C., 2011. "Ambiguity Aversion and Portfolio Choice in Small-Scale Peruvian Farming," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-56, November.
    3. Oladehinde, Gbenga John & Olayiwola, Lasun Mykail & Popoola, Kehinde Olayinka, 2024. "Security of land tenure: A comparative analysis among sub-ethnic groups in rural communities of Oyo State, Nigeria," Land Use Policy, Elsevier, vol. 138(C).
    4. Navarro-Castañeda, Sandro & Arranz, José M. & Burguillo, Mercedes & Colla De Robertis, Esteban, 2021. "Land tenure security and agrarian investments in the Peruvian Highlands," Land Use Policy, Elsevier, vol. 109(C).
    5. 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.

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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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