Land Registration and Land Investment: The case of Tigray Region, Northern Ethiopia

Abstract

The study explored whether land titling fostered tenure security and, thereby, increased investment on land improvement. We assessed the determinants of the probability and intensity of investment by using random effects and modified random effects probit and truncated regression models on 437 randomly selected households operating 1696 plots from eighteen selected communities (tabias) located in the five zones of the Tigray Region. Findings indicated that registration enhanced holders’ feeling of tenure security, there was significant increase in probability and composition of investments, and increased private initiatives. The likelihood and the intensity of conservation were low on land lost in the last redistribution or taken away by the public for different purposes. Length of tenure, initial investment, and access to food-for-work positively influenced the likelihood and intensity of conservation. Households with more livestock, land holding and adult male labor (although significant only in the random effects probit and at 10 percent level) were found to be more likely to make investments on land. Moreover, the intensity of investment was significantly influenced by the year of registration. Finally, households operating rented-in land were found to be less likely to and invested less indicating that tenants commit fewer resources to longterm investments because they strive to maximize immediate benefits. There were various time invariant household and plot level characteristics that influenced the probability and intensity of conservation. This calls for policy makers to minimize the potential sources of insecurity such as threats of future land redistribution and land taking without proper land compensation. Moreover, land registration/certification is vital for creating tenure security; this has to out scaled throughout the country.

Keywords: titling, tenure security, conservation investment, random effects model; Ethiopia, Africa.