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Tenure security and land-related investment - evidence from Ethiopia

Author

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  • Deininger, Klaus
  • Jin, Songqing
  • Adenew, Berhanu
  • Gebre-Selassie, Samuel
  • Nega, Berhanu

Abstract

The authors use a large data set from Ethiopia that differentiates tenure security and transferability to explore determinants of different types of land-related investment and its possible impact on productivity. While they find some support for endogeneity of investment in trees, this is not the case for terraces. Transfer rights are unambiguously investment-enhancing. The large productivity effect of terracing implies that, even where households undertake investments to increase their tenure security, this may not be socially efficient. In Ethiopia, government action to increase tenure security and transferability of land rights can significantly enhance rural investment and productivity.

Suggested Citation

  • Deininger, Klaus & Jin, Songqing & Adenew, Berhanu & Gebre-Selassie, Samuel & Nega, Berhanu, 2003. "Tenure security and land-related investment - evidence from Ethiopia," Policy Research Working Paper Series 2991, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2991
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    More about this item

    Keywords

    Land and Real Estate Development; Environmental Economics&Policies; Municipal Housing and Land; Labor Policies; Payment Systems&Infrastructure; Environmental Economics&Policies; Municipal Housing and Land; Banks&Banking Reform; Land and Real Estate Development; Real Estate Development;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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