Library Resource
Reports & Research
December, 1999
India, British Indian Ocean Territory
The effects of land sales restrictions on credit use, land investment and cultivation decisions are investigated using data from two villages in south India. Sales restrictions are found to have little effect on credit supply and demand or demand for land improvements. Some household characteristics are found to affect investment demand on plots subject to sales restrictions in one village, suggesting that the 'transactions effect' of such restrictions may be inhibiting allocative efficiency.