Does Title Increase Large Farm Productivity? Institutional Determinants of Large Land-Based Investments’ Performance in Zambia

The importance of well-functioning land markets for structural transformation via labor movements to the non-agricultural sector, growth in farm size, and the ability to use land as collateral for credit and has long motivated Government efforts at reducing the transaction costs of registering and t...

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Main Authors:	Ali, Daniel Ayalew, Deininger, Klaus
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	AGRICULTURAL PRODUCTIVITY LAND RIGHTS LAND TITLING LAND INVESTMENT ACCESS TO FINANCE
Online Access:	http://documents.worldbank.org/curated/en/334231624025654988/Does-Title-Increase-Large-Farm-Productivity-Institutional-Determinants-of-Large-Land-Based-Investments-Performance-in-Zambia http://hdl.handle.net/10986/35822

id	okr-10986-35822
recordtype	oai_dc
spelling	okr-10986-358222021-11-18T15:33:15Z Does Title Increase Large Farm Productivity? Institutional Determinants of Large Land-Based Investments’ Performance in Zambia Ali, Daniel Ayalew Deininger, Klaus AGRICULTURAL PRODUCTIVITY LAND RIGHTS LAND TITLING LAND INVESTMENT ACCESS TO FINANCE The importance of well-functioning land markets for structural transformation via labor movements to the non-agricultural sector, growth in farm size, and the ability to use land as collateral for credit and has long motivated Government efforts at reducing the transaction costs of registering and transferring land and supporting large farm formation. Rigorous evidence on the effect of such measures has, however, been scant. This paper explores the impact of institutional arrangements on productivity for a representative sample of 3,000 large farms in Zambia, one of the earliest African adopters of such policies to close this gap. Instrumental-variable (IV) regressions suggest title has no effect on productivity, investment, or credit access and reduces rather than improves rental market participation. Measures to harness Zambia’s potential include improving title quality through exclusive use of digital registries; imposition of a land tax on state land to incentivize productive rather than speculative land use and cancel outdated legacy documents; and greater involvement of traditional authorities in record maintenance and land management, possibly via land tax revenue sharing. 2021-06-24T13:54:09Z 2021-06-24T13:54:09Z 2021-06 Working Paper http://documents.worldbank.org/curated/en/334231624025654988/Does-Title-Increase-Large-Farm-Productivity-Institutional-Determinants-of-Large-Land-Based-Investments-Performance-in-Zambia http://hdl.handle.net/10986/35822 English Policy Research Working Paper;No. 9702 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Africa Eastern and Southern (AFE) Zambia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	AGRICULTURAL PRODUCTIVITY LAND RIGHTS LAND TITLING LAND INVESTMENT ACCESS TO FINANCE
spellingShingle	AGRICULTURAL PRODUCTIVITY LAND RIGHTS LAND TITLING LAND INVESTMENT ACCESS TO FINANCE Ali, Daniel Ayalew Deininger, Klaus Does Title Increase Large Farm Productivity? Institutional Determinants of Large Land-Based Investments’ Performance in Zambia
geographic_facet	Africa Africa Eastern and Southern (AFE) Zambia
relation	Policy Research Working Paper;No. 9702
description	The importance of well-functioning land markets for structural transformation via labor movements to the non-agricultural sector, growth in farm size, and the ability to use land as collateral for credit and has long motivated Government efforts at reducing the transaction costs of registering and transferring land and supporting large farm formation. Rigorous evidence on the effect of such measures has, however, been scant. This paper explores the impact of institutional arrangements on productivity for a representative sample of 3,000 large farms in Zambia, one of the earliest African adopters of such policies to close this gap. Instrumental-variable (IV) regressions suggest title has no effect on productivity, investment, or credit access and reduces rather than improves rental market participation. Measures to harness Zambia’s potential include improving title quality through exclusive use of digital registries; imposition of a land tax on state land to incentivize productive rather than speculative land use and cancel outdated legacy documents; and greater involvement of traditional authorities in record maintenance and land management, possibly via land tax revenue sharing.
format	Working Paper
author	Ali, Daniel Ayalew Deininger, Klaus
author_facet	Ali, Daniel Ayalew Deininger, Klaus
author_sort	Ali, Daniel Ayalew
title	Does Title Increase Large Farm Productivity? Institutional Determinants of Large Land-Based Investments’ Performance in Zambia
title_short	Does Title Increase Large Farm Productivity? Institutional Determinants of Large Land-Based Investments’ Performance in Zambia
title_full	Does Title Increase Large Farm Productivity? Institutional Determinants of Large Land-Based Investments’ Performance in Zambia
title_fullStr	Does Title Increase Large Farm Productivity? Institutional Determinants of Large Land-Based Investments’ Performance in Zambia
title_full_unstemmed	Does Title Increase Large Farm Productivity? Institutional Determinants of Large Land-Based Investments’ Performance in Zambia
title_sort	does title increase large farm productivity? institutional determinants of large land-based investments’ performance in zambia
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/334231624025654988/Does-Title-Increase-Large-Farm-Productivity-Institutional-Determinants-of-Large-Land-Based-Investments-Performance-in-Zambia http://hdl.handle.net/10986/35822
_version_	1764483847947288576

Does Title Increase Large Farm Productivity? Institutional Determinants of Large Land-Based Investments’ Performance in Zambia

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