Land tenure security and investment incentives: puzzling evidence from Burkina Faso

Brasselle, Anne-Sophie; Gaspart, Frédéric; Platteau, Jean‐Philippe

doi:10.1016/s0304-3878(01)00190-0

Cited by 503 publications

(367 citation statements)

References 19 publications

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“…They argue that titling enhances tenure security, helps to secure investments; supports land markets to evolve more efficiently; improves access to formal credit and helps to reduce poverty and ultimately expedites economic development (Payne et al, 2009;UNECE, 2005;World Bank, 2006). The economic impact of formal property titles is derived from the assurance effect -certainty that 4 property owners will be able to reap the fruits of their investment and the collateralisation effect -the ability of property owners to use their properties as collateral for credit (Brasselle et al, 2001;de Soto, 2000). With secure property titles, property owners who do not have funds to invest could obtain credit to undertake their desired investment activities through the collateralisation effect.…”

mentioning

confidence: 99%

Secure property right as a determinant of SME’s access to formal credit in Ghana: dynamics between Micro-finance Institutions and Universal Banks

Domeher

Abdulai

Yeboah

2016

Journal of Property Research

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Does registered land title help to improve tenure security and enhance one's chances of securing a loan from formal financial institutions? This question continues to sharply divide opinions among academics, policy makers and international development partners. The long running debate on the subject of 'Property in the Commons', which serves as the ideological origin of what has become known as 'Washington Consensus' in contemporary times claims that there is positive correlation between the possession of registered land title and access to credit. However, this has often received considerable rebuttals. Even if the 'Washington Consensus' is accepted, the argument is still laced with some fundamental difficulty because it inherently assumes and treats financial institutions as a homogenous class of business. Yet financial institutions exhibit greater diversity in their operations and decision making process. This paper attempts to contribute towards developing improved understanding between the 'secure land title and access to credit relationship' by disaggregating financial institutions into Micro Finance and UniversalBanks and examining what role secure land title play in granting credit from the perspectives of these two categories of financial institutions. To achieve this, field level investigations were conducted amongst officials of both Microfinance Institutions (MFIs) and Universal Banks in Ghana using structured questionnaires. A total of 200 questionnaires -100 each to MFI and Universal Banks were administered of which a response rate of 51 and 57 was respectively achieved. The data was analysed using various non-parametric statistics. The study amongst other things established that universal banks and MFIs differ in their opinions on how important secure titles are in the lending process and the nature of the influence they can exert on the final lending decision. It was established that both categories of lenders do regard secure titles as important but whether or not it will influence their decision to accept a given landed property as collateral varies across lender types.

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mentioning

confidence: 99%

Secure property right as a determinant of SME’s access to formal credit in Ghana: dynamics between Micro-finance Institutions and Universal Banks

Domeher

Abdulai

Yeboah

2016

Journal of Property Research

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“…In China, higher risk of expropriation is associated with significant reduction in application of organic fertilizer (Jacoby, Li and Rozelle, 2002), and in Columbia, inhibited shifts into coffee production (Sanchez, Lopez-Uribe and Fazio, 2010). Other studies, however, cast doubt on the existence of a systematic influence of land tenure security on investment, and emphasize that informal rights may provide stable entitlements (Brasselle, Gaspart and Platteau, 2002). 5 The effects of titling on residential investment are consistent with those from a "natural experiment" analysis of the allocation of property rights in Argentina (Galiani and Schargrodsky, 2005).…”

mentioning

confidence: 76%

Village Political Economy, Land Tenure Insecurity, and the Rural to Urban Migration Decision: Evidence from China

Giles

Ren

2014

Policy Research Working Papers

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu This paper investigates the impact of land tenure insecurity on the migration decisions of China's rural residents. A simple model first frames the relationship among these variables and the probability that a reallocation of land will occur in the following year. After first demonstrating that a village leader's support for administrative land reallocation carries with it the risk of losing a future election, the paper exploits election-timing and village heterogeneity in lineage group composition and demographic change to identify the effect of land security. In response to an expected land reallocation in the following year, the probability that a rural resident migrates out of the county declines by 2.8 percentage points, which accounts for 17.5 percent of the annual share of village residents, aged 16 to 50, who worked as migrants during the period. This finding underscores the potential importance of secure property rights for facilitating labor market integration and the movement of labor out of agriculture. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SJEL Classification: O12, O15, J61, Q15, R23

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“…First, land tenure systems evolve dynamically over time and many studies have documented that, as payoffs from investment increase, institutional innovations to increase tenure security emerge endogenously (Brasselle et al 2002;Bruce and MigotAdholla 1994;Otsuka 2001;Platteau 1994). Titling of land in pursuit of credit benefits (de Soto 2000) has in many cases created unsustainable institutions but failed to deliver the expected benefits.…”

Section: The Debate On Land Tenure Formalization In Africamentioning

confidence: 99%

Environmental and Gender Impacts of Land Tenure Regularization in Africa: Pilot Evidence from Rwanda

Ali¹,

Deininger²,

Goldstein³

2011

Policy Research Working Papers

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Although recent developments greatly increased interest in African land tenure, few models to address these issues at the required scale have been identified or evaluated. Rwanda's nation-wide land tenure regularization programme is of great interest. A discontinuity design with spatial fixed effects that is used to evaluate the pilot for this programme points to three main effects; namely, (i) improved land access for legally married women and better recordation of inheritance rights; (ii) significant and large investment impacts that are particularly pronounced for women; and (iii) a reduction in land market activity rather than distress sales. Implications for programme design and policy are discussed.

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Land tenure security and investment incentives: puzzling evidence from Burkina Faso

Cited by 503 publications

References 19 publications

Secure property right as a determinant of SME’s access to formal credit in Ghana: dynamics between Micro-finance Institutions and Universal Banks

Secure property right as a determinant of SME’s access to formal credit in Ghana: dynamics between Micro-finance Institutions and Universal Banks

Village Political Economy, Land Tenure Insecurity, and the Rural to Urban Migration Decision: Evidence from China

Environmental and Gender Impacts of Land Tenure Regularization in Africa: Pilot Evidence from Rwanda

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