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Evaluating the Impact of Land Tenure and Titling on Access to Credit in Uganda

Author

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  • Petracco, Carly K.
  • Pender, John L.
Abstract
Increasing smallholder farmers’ access to credit is a paramount concern in Africa in general and in Uganda in particular, as a means to help modernize agriculture. We use matching impact evaluation methods to assess four pair-wise comparisons: i) households who have freehold land with vs. without a title, ii) households who have customary land with vs. without a customary certificate, iii) households with a title or certificate having freehold vs. customary tenure, and iv) households without a title or certificate having freehold vs. customary tenure. Each comparison is then evaluated for the impact on access to any form of credit, formal credit and informal credit. Two matching methods were used and the results compared to test the robustness of the conclusions. The only statistically significant finding is a positive impact on access to credit of households with freehold without title over customary holders without a certificate. The results imply that tenure rights, rather than title to those rights, affect credit access for rural households in Uganda. The fact that access to informal credit is increased by freehold tenure status, even without a title, suggests that informal lenders use the tenure status as a screening device, rather than as recoverable collateral.

Suggested Citation

  • Petracco, Carly K. & Pender, John L., 2009. "Evaluating the Impact of Land Tenure and Titling on Access to Credit in Uganda," 2009 Conference, August 16-22, 2009, Beijing, China 51899, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51899
    DOI: 10.22004/ag.econ.51899
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    3. Dower, Paul & Potamites, Elizabeth, 2005. "Signaling Credit-Worthiness: Land Titles, Banking Practices and Access to Formal Credit in Indonesia," 2005 Annual meeting, July 24-27, Providence, RI 19120, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    7. Louis Atamja & Sungjoon Yoo, 2021. "Credit Constraint and Rural Household Welfare in the Mezam Division of the North-West Region of Cameroon," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    8. Dong, Jiayun & Liang, Wenyuan & Fu, Yimin & Liu, Weiping & Managi, Shunsuke, 2021. "Impact of devolved forest tenure reform on formal credit access for households: Evidence from Fujian, China," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 486-498.
    9. Kotchikpa Gabriel Lawin & Lota Tamini, 2018. "Droits de propriété foncière et performance des petits producteurs agricoles des pays en développement : une synthèse de la littérature empirique," CIRANO Working Papers 2018s-05, CIRANO.
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    More about this item

    Keywords

    Agricultural Finance; Land Economics/Use;

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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