Impacts of Parcel-based Second Level Landholding Certificates on Soil Conservation Investment in Tigrai,Northern Ethiopia

Abstract

The question of whether the rural land registration and certification has an impact on farm level investment or not, remains an important policy question. It is also a deeply sensitive political issue in present day of Ethiopia. Using household level data collected from 279 household, this article investigates the impacts of rural land certificates on investment and its implication on fostering land productivity. Farmers’ reasons for adopting soil conservation measures vary sharply between stone terraces and soil bunds. The likelihood ratio test of model appropriates rejects the Tobit model in favour of the double hurdle model. This encourages the researcher to separately estimate the impacts of certificate on adoption decision and intensity of adoption. Results from the double hurdle model shows certificate have positively and significantly correlated with decision to invest but negatively correlated with intensity of investment.

Keywords

Double hurdle model land certification soil bound stone terrace tenure security Ethiopia

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