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Land Ownership Security and Farm Investment in Thailand
Author(s) -
Feder Gershon,
Onchan Tongroj
Publication year - 1987
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242281
Subject(s) - business , land tenure , investment (military) , incentive , capital (architecture) , natural resource economics , agricultural economics , finance , economics , market economy , agriculture , geography , politics , political science , law , archaeology
The article discusses the impact of land ownership security on farm investment and land improvements. Ownership security enhances capital formation by providing better incentives and improved access to credit. Data from three provinces in Thailand are used to support theoretical propositions and estimate the impact of ownership security. Econometric analysis shows that in two provinces, ownership security induces significantly higher capital/land ratios. In a third province, with a well‐developed, informal credit market, ownership security is less important and the impact on capital formation is less significant. Land‐improving investments are shown to be significantly affected by ownership security.