Land Property Rights and Resource Allocation

In this paper, we review the most significant empirical literature on the causal effects of land property rights. The literature indicates that secure property rights boost investment in both rural and urban areas. These effects, however, do not appear to be the result of improved credit conditions. In rural areas, clear land rights also lead to increases in productivity and farm earnings. In contrast, for urban areas, the evidence for an effect on earnings is mixed. We find little empirical evidence to suggest that land-titling programs enhance the development of land markets. Finally, some evidence suggests that land titling induces changes in household structure that foster human capital accumulation and may help to increase the incomes of future generations.