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Property Rights in A Very Poor Country : Tenure Insecurity and Investment in Ethiopia / Ali, Daniel Ayalew

World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online

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Format:
Book
Government document
Author/Creator:
Ali, Daniel Ayalew
Contributor:
Ali, Daniel Ayalew
Dercon, Stefan
Gautam, Madhur
Series:
Policy research working papers.
World Bank e-Library.
Language:
English
Subjects (All):
Agricultural production.
Agriculture.
Appropriation.
Common Property Resource Development.
Forestry.
Heterogeneity.
Land rights.
Land tenure.
Municipal Housing and Land.
Natural resources.
Property Rights.
Rural Development.
Rural Development Knowledge and Information Systems.
Tenure.
Urban Development.
Urban Housing.
Local Subjects:
Agricultural production.
Agriculture.
Appropriation.
Common Property Resource Development.
Forestry.
Heterogeneity.
Land rights.
Land tenure.
Municipal Housing and Land.
Natural resources.
Property Rights.
Rural Development.
Rural Development Knowledge and Information Systems.
Tenure.
Urban Development.
Urban Housing.
Physical Description:
1 online resource (31 pages)
Place of Publication:
Washington, D.C., The World Bank, 2007
System Details:
data file
Summary:
This paper provides evidence from one of the poorest countries of the world that the property rights matter for efficiency, investment, and growth. With all land state-owned, the threat of land redistribution never appears far off the agenda. Land rental and leasing have been made legal, but transfer rights remain restricted and the perception of continuing tenure insecurity remains quite strong. Using a unique panel data set, this study investigates whether transfer rights and tenure insecurity affect household investment decisions, focusing on trees and shrubs. The panel data estimates suggest that limited perceived transfer rights, and the threat of expropriation, negatively affect long-term investment in Ethiopian agriculture, contributing to the low returns from land and perpetuating low growth and poverty.

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