Rural Land Certification and Land Related Investment: A Case Study of Two Rural Villages in the Amhara National Regional State, Ethiopia

Course ID
Ethiopian Economics Association (EEA)
Ermias Ashagrie

This paper provides some empirical evidence towards the effect of rural land certification on land-related investment; specifically on tree planting and terrace construction decision of small-holder farmers. An effort was made to quantify differences in land-related investments among those with or without certificate. Accordingly, 80 households, 40 households from cadastral registered Kebele and the other 40 from untitled kebele were interviewed using a pre-tested questionnaire. The study estimated the investment equation using Ordinary Least Square (OLS) and Probit model. The result indicates that land certification has insignificant effect on land-related investment-both in tree plantation and construction of terraces. The result seems contradictory with the conventional literature that shows tenure security accorded by land titling enhances farmers’ propensity to engage in land related investments. This is because the results show that farmers’ perception of tenure security is virtually similar in both Kebeles-in titled and untitled. In addition, in the context of the study area, where there is no property market and using land as collateral is prohibited by law, land titling may affect investment only through its assurance effect. Based on these results, the study proposed immediate solutions and urges future work that require rigorous examination whether other scenarios (privatization, long-term lease) works to enhance investment

Corporate Author: Getinet Alemu, Demirew Getachew (editors); Ethiopian Economic Association. Bahir Dar Chapter
Publisher: Ethiopia Economics Association (EEA)
ISBN/ISSN: 978-999445417-4
Primary Descriptors: tenure security
Secondary Descriptor: Land Investment
Geographic Descriptors: Ethiopia, Ama?ra kelel
Broad Subject heading: land (Rural)
Call Number: 330.963 PRO 2011
Serial Key Title: Proceedings of the Second Regional Conference of the Amhara Regional State Economic Development
Publication catagory: Regional Conference
Content type: EEA Publication
Publication date: 2013-06-27 00:00:00
Edition: 2nd
Conference Place: Bahir Dar, Ethiopia
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annualy
Thematic area: Regional Conference of the Amhara Regional State Economic Development
Author: Ermias Ashagrie and Hibret Belete
Chapter conference: Amhara
Conference date: 2010