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Cultivate or rent out ? Land security in rural Thailand

Author

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  • Gine, Xavier

Abstract

In the 1980s the Thai government tried to legalize squatters by issuing special titles that restricted the sale and rental of the land. Using data from 2,874 farming households collected in 1997, the author finds that in places where these government titles where issued, leased plots are more likely to be titled than those that are self-cultivated. For these areas, he uses a model to estimate a 6 percent risk premium in the rental rate for untitled plots. In other areas, however, land rights play no role in the decision to lease land and the rental rate of untitled plots does not include a risk premium. The results indicate that this policy distorted the land rental market by triggering a sense of insecurity among landowners.

Suggested Citation

  • Gine, Xavier, 2005. "Cultivate or rent out ? Land security in rural Thailand," Policy Research Working Paper Series 3734, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3734
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    References listed on IDEAS

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    Cited by:

    1. Jin, Songqing & Deininger, Klaus, 2009. "Land rental markets in the process of rural structural transformation: Productivity and equity impacts from China," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 629-646, December.
    2. Castañeda Dower, Paul & Pfutze, Tobias, 2013. "Specificity of control: The case of Mexico's ejido reform," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 13-33.
    3. Joseph P. Kaboski & Robert M. Townsend, 2011. "A Structural Evaluation of a Large‐Scale Quasi‐Experimental Microfinance Initiative," Econometrica, Econometric Society, vol. 79(5), pages 1357-1406, September.
    4. Deininger, Klaus & Jin, Songqing, 2007. "Land rental markets in the process of rural structural transformation : productivity and equity impacts in China," Policy Research Working Paper Series 4454, The World Bank.
    5. Gine, Xavier, 2005. "Access to capital in rural Thailand : an estimated model of formal versus informal credit," Policy Research Working Paper Series 3502, The World Bank.
    6. Ravi Bhandari, 2006. "Searching for a Weapon of Mass Production in Nepal," Journal of Developing Societies, , vol. 22(2), pages 111-143, June.

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    More about this item

    Keywords

    Wetlands; Forestry; Rural Land Policies for Poverty Reduction; Land Use and Policies; Municipal Housing and Land;
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