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Tenure security and land-related investment - evidence from Ethiopia, Volume 1
 
Author:Deininger, Klaus; Jin, Songqing; Adenew, Berhanu; Gebre-Selassie, Samuel; Nega, Berhanu; Country:Ethiopia;
Date Stored:2003/04/11Document Date:2003/03/31
Document Type:Policy Research Working PaperSubTopics:Environmental Economics & Policies; Payment Systems & Infrastructure; Municipal Housing and Land; Banks & Banking Reform; Real Estate Development; Labor Policies; Land and Real Estate Development
Language:EnglishRegion:Africa
Report Number:WPS2991Sub Sectors:Housing finance; General public administration sector; Crops
Collection Title:Policy, Research working paper ; no. WPS 2991Volume No:1

Summary: 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.

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