Resource information

Date of publication: 
December 2011
Resource Language: 
ISBN / Resource ID: 
handle:10986/5532
Copyright details: 
World Bank

This article provides evidence from one of the poorest countries in the world that the institutions of 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 implied tenure insecurity affect household investment decisions, focusing on trees and shrubs. The panel data estimates suggest that limited perceived transfer rights negatively affects the long-term investment in Ethiopian agriculture, contributing to the low returns from land and perpetuating low growth and poverty.

Authors and Publishers

Author(s), editor(s), contributor(s): 
Ali, Daniel Ayalew Dercon, Stefan Gautam, Madhur

Data provider

Intergovernmental or Multilateral organization

The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.

Share this page