Formalization without certification? Experimental evidence on property rights and investment
This study presents evidence from the first large-scale randomized-controlled trial of a land formalization programme
Abstract
We present evidence from the first large-scale randomized-controlled trial of a land formalization program. We examine the link between land demarcation and investment in rural Benin in light of a model of agricultural production under insecure tenure. The demarcation process involved communities in the mapping and attribution of land rights; cornerstones marked parcel boundaries and offered lasting landmarks. The tenure security improvement through demarcation induces a 23 to 43 percent shift toward long-term investment on treated parcels. We explore gender and parcel location as relevant dimensions of heterogeneity. We find that female-managed landholdings in treated villages are more likely to be left fallow—an important soil fertility investment. Women respond to an exogenous tenure security change by shifting investment away from relatively secure, demarcated land and toward less secure land outside the village to guard those parcels.
This work is part of the Closing the Gender Gap in Africa: evaluating new policies and programmes for women’s economic empowerment programme
Citation
Markus Goldstein, Kenneth Houngbeji, Florence Kondylis, Michael O’Sullivan and Harris Selod, Journal of Development Economics, Volume 132, March 2018.
Link
Formalization without certification? Experimental evidence on property rights and investment