Land Use Policy
Abstract
This study examines the relationship between land-tenure security and nine types of agricultural investment in Peru’s Highlands, using agricultural census data and a simultaneous-equations approach to account for the possibility that tenure security and investment affect one another. Tenure security is positively associated with five investment types, although the estimated effects are smaller than the institutional argument for titling might suggest. For two investments, the estimated relationship is negative, consistent with customary practices serving as effective forms of land management. The findings suggest that land-titling programs can support rural development, but are not sufficient on their own and should complement functioning local institutions. Education, training, and gender equality also matter for rural development.