Estimating Heterogeneous Effects of Land Titling on Rural Household’s Agricultural Productivity: Evidence From the Southern Highland Regions of Tanzania

Abstract

This paper analyses the effect of land titles on agricultural productivity in the southern highland regions of Mbeya and Ruvuma and assesses the potential mediating effect of access to credit. The contribution of this paper to the existing literature is threefold. First, it contributes to the general literature on the impact of land titling on agricultural performance. Second, it investigates whether access to credit is an important mediating variable. Third, it assessed whether households respond differently depending on farmer and land characteristics. To contribute to the evidence on the impact of land titling four hypotheses were tested: Since the study is based on observational data, propensity score matching technique was employ to determine the land titling effects. The findings suggest that land titles have a statistically significant positive effect on productivity. This can at least partially be explained by an increase in credit access for titled households. The study results further suggest heterogeneous effects of titles, which vary with age of the head of household and size of land cultivated.