Investment in Land, Tenure Security and Area Farmed in Northern Mozambique

Abstract: The analysis of land investment and tenure security usually assumes land scarcity. However, some developing countries have communities with land abundance. This article therefore examines the effects of land abundance for investment and tenure security. The paper develops a formal test of land abundance and estimates a system of three simultaneous equations. The empirical analysis uncovers significant land abundance in Northern Mozambique. In contrast to the literature, area farmed is a determinant of investment and tenure security. However, no link exists between investment and tenure security. These findings have strong implications for rural development policy in land abundant communities.

Share LinkedIn