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Property rights and investment in agriculture: Evidence for Ghana

  • Abdulai, Awudu
  • Owusu, Victor
  • Goetz, Renan

This article develops a theoretical framework to examine the relationship between land tenure agreements and households’ investment in land improvement and conservation measures. It then analyzes this relationship with a multivariate probit model based on a survey data from a sample of 560 plots belonging to 246 farmers from 6 villages in the Brong-Ahafo region of Ghana. A major hypothesis tested is that investment in productivity enhancing and conservation techniques are influenced by land tenure systems. The theoretical analysis and empirical results generally reveal that land tenure differences significantly influence farmers’ decisions to invest in land improvement and conservation measures. Furthermore, reduced-form productivity regressions show that tenure differences do affect land productivity.

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File URL: https://mpra.ub.uni-muenchen.de/37046/1/MPRA_paper_37046.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37046.

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Date of creation: Jun 2008
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Handle: RePEc:pra:mprapa:37046
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  1. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
  2. Edward B. Barbier, 2004. "Explaining Agricultural Land Expansion and Deforestation in Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1347-1353.
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  4. Carter, Michael R. & Olinto, Pedro, 2000. "Getting Institutions 'Right' for Whom: Credit Constraints and the Impact of Property Rights on the Quantity and Compostiton of Investment," Staff Paper Series 433, University of Wisconsin, Agricultural and Applied Economics.
  5. Shaban, Radwan Ali, 1987. "Testing between Competing Models of Sharecropping," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 893-920, October.
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  7. Markus Goldstein & Christopher Udry, 2005. "The Profits of Power: Land Rights and Agricultural Investment in Ghana," Working Papers 929, Economic Growth Center, Yale University.
  8. Jeff DeSimone, 2002. "Illegal Drug Use and Employment," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 952-977, October.
  9. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
  10. Angelsen, Arild, 1999. "Agricultural expansion and deforestation: modelling the impact of population, market forces and property rights," Journal of Development Economics, Elsevier, vol. 58(1), pages 185-218, February.
  11. Marenya, Paswel P. & Barrett, Christopher B., 2007. "Household-level determinants of adoption of improved natural resources management practices among smallholder farmers in western Kenya," Food Policy, Elsevier, vol. 32(4), pages 515-536, August.
  12. Feder, Gershon & Feeny, David, 1991. "Land Tenure and Property Rights: Theory and Implications for Development Policy," World Bank Economic Review, World Bank Group, vol. 5(1), pages 135-53, January.
  13. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
  14. 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.
  15. Otsuka, Keijiro & Place, Frank, 2001. "Land tenure and natural resource management," Food policy statements 34, International Food Policy Research Institute (IFPRI).
  16. Pinckney, Thomas C & Kimuyu, Peter K, 1994. "Land Tenure Reform in East Africa: Good, Bad or Unimportant?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 3(1), pages 1-28, April.
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