The authors use a large data set from Ethiopia thatThe large productivity effect of terracing implies that, differentiates tenure security and transferability to even where households undertake investments to explore determinants of different types of land-related increase their tenure security, this may not be socially investment and its possible impact on productivity.efficient. In Ethiopia, government action to increase While they find some support for endogeneity of tenure security and transferability of land rights can investment in trees, this is not the case for terraces.significantly enhance rural investment and productivity. Transfer rights are unambiguously investment-enhancing. This paper-a product of Rural Development, Development Research Group-is part of a larger effort in the group to assess the impact of land policy on equity and productive development. Copies of the paper are available free from the World Bank,
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