Efficiency and Productivity Differential Effects of Land Certification Program in Ethiopia: Quasi-Experimental Evidence from Tigray

36 Pages Posted: 21 Oct 2013

See all articles by Hagos Hosaena Ghebru

Hagos Hosaena Ghebru

International Food Policy Research Institute (IFPRI)

Stein T. Holden

Norwegian University of Life Sciences

Date Written: October 1, 2013

Abstract

Although theory predicts that better property rights to land can increase land productivity through tenure security effects (investment effects) and through more efficient input use due to enhanced tradability of the land (factor intensity effect), empirical studies on the size and magnitude of these effects are very scarce. Taking advantage of a unique quasi-experimental survey design, this study analyzes the productivity impacts of the Ethiopian land certification program by identifying how the investment effects (technological gains) would measure up against the benefits from any improvements in input use intensity (technical efficiency). For this purpose, we adopted a data envelopment analysis-based Malmquist-type productivity index to decompose productivity differences into (1) within-group farm efficiency differences, reflecting the technical efficiency effect, and (2) differences in the group production frontier, reflecting the long-term investment (technological) effects. The results show that farms without a land use certificate are, on aggregate, less productive than those with formalized use rights. We found no evidence to suggest this productivity difference is due to inferior technical efficiency. Rather, the reason is down to technological advantages, or a favorable investment effect, from which farm plots with a land use certificate benefit when evaluated against farms not included in the certification program. The low level of within-group efficiency of farms in each group reinforces the argument that certification programs need to be accompanied by complementary measures such as an improved financial and legal institutional framework in order to achieve the promised effects.

Keywords: Ethiopia, East Africa, Africa south of Sahara, Africa, Land tenure, productivity, Land productivity, land certification, data envelopment analysis, Malmquist index

Suggested Citation

Hosaena Ghebru, Hagos and Holden, Stein T., Efficiency and Productivity Differential Effects of Land Certification Program in Ethiopia: Quasi-Experimental Evidence from Tigray (October 1, 2013). IFPRI Discussion Paper 01295, Available at SSRN: https://ssrn.com/abstract=2343183 or http://dx.doi.org/10.2139/ssrn.2343183

Hagos Hosaena Ghebru (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Stein T. Holden

Norwegian University of Life Sciences ( email )

PO Box 5033
NO-1432 Aas
Norway
+47-64965699 (Phone)
+47-64943012 (Fax)

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