FARMING & RURAL SYSTEMS ECONOMICS edited ty Werner Doppler and Siegfried Bauer

Transcription

1 FARMING & RURAL SYSTEMS ECONOMICS edited ty Werner Doppler and Siegfried Bauer VOLUME 56 Land Property Rights and Agricultural Development in the Highlands of Madagascar: Economic and Environmental Implications Rija Ranaivoarison ISBN X ISSN D26 Margraf Verlag

2 TABLE OF CONTENTS 1. INTRODUCTION Problem Statement Study's Objectives Study's Hypotheses Study's Organization : 4 2. AGRICULTURE AND POLICY IN MADAGASCAR Introduction Economic Background Structure and Growth Trends Structure of Import and Export Balance of Payments and Debt Poverty in Madagascar Madagascar Agriculture Sector General Performance of Agriculture Sector \\ Growth Trends in Major Sub-Sector Food Crop: Rice Export Crops Fisheries Livestock Agricultural Policies Post Independence ( ) Socialism Period ( ) Under Structural Adjustment Program (Since 1985) Constraints to Agricultural Development LAND RIGHTS SYSTEM IN MADAGASCAR: FACTS, POLICIES AND PROBLEMS Structures and Organization of Land Ownership State Ownership Private Ownership Land Registration Procedure of Land Registration Current Situation of Registration Potential Land Registration Demand Cost of Registration Mode of Acquisition of Land Inheritance Land Market Land Lease Market Land Policies in Historical Perspective Pre-Colonial Era 31

3 3.4.2 Colonial Era, Post-colonial Era Land Problems in Madagascar Nature of the Problems Limited Access to Land Insecurity of Land Tenure Factors Causing Land Problems Resulting Effects of Land Problems Farm Miniaturization Farm Fragmentation Reduction of Fallow Period Migration Links to Poverty Current Changes in Land Policy Long Leases Creation of "Guichet Unique" GELOSE or Secured Local Management of Natural Resources 42 Concluding Remarks METHODOLOGY AND DATA ANALYSIS Study Area Rational for the Choice of the Study Area Characteristics of the Study Area Physical Characteristics Land Use and Farming Systems Access to Institutions Sampling Design Data Collection Primary Data Secondary Data Data Analysis Level of Analysis Descriptive Analysis Causality Analysis RESULTS OF FIELD SURVEY Characteristics of Households Demographic and Educational Characteristics Income Source Farm Size Patterns Land Rights Categories Mode of Acquisition of Land Fixed Rental Land 59

4 Sharecropped Land Inherited Land Purchased Land Situation of Land Titling in the Study Area Farmer with Titled Land Farmer's Perceptions over Land Titling Linking Land Rights and Agricultural Productivity Land Rights and Inputs Use Land Rights Output Land Rights and Investment in Material and Equipment Land Rights and Investment on Soil Conservation Techniques Land Rights and Credit Use Descriptive Results Factors Explaining the Relationship between Land Rights and Access to Formal Credit 77 Concluding Remarks OVERVIEW OF THEORIES AND FACTS Types of Property Regimes Non-Property Regimes Common Property Regimes State Property Regimes go Private Property Regimes Hardin's "Tragedy of the Commons" gj 6.3 The Property Rights School (Transaction Cost Approach) g Basic Assumptions g Empirical Evidence g Empirical Results in Sub-Saharan Africa Countries g Policy Implication g Limitation of Property Rights School g5 6.4 The Evolutionary Theory of Land Rights School g Basic Assumptions g Policy Implication g Empirical Evidences g Limitations of the Evolutionary Theory of Land Rights School g9 6.5 Overview of Research Methodology Measurement of Tenure Security 9j Econometric Method of Testing THE MODEL'S STRUCTURE AND EMPIRICAL SPECIFICATION Theoretical Framework Identification of Indicator Variables Indicators of Land Rights 99

5 Approaches to Measure the Land Rights Land Rights Indexes in the Study Area Investment Variable Investment in Agricultural Equipment Investment in Soil Conservation Technologies Investment in Soil Fertility Enhancement and Maintenance Economic Indicators Indexes of Productivity Other Index of Productivity Economic Indexes in Study Area Indicators of Plot Plot Slope Soil Quality Soil Degradation Indicators of Household Labor Land Fragmentation Cash Income Farm Size Dependency Ratio Access to Credit and Extension Services Migrant Status Education Level and Age of the Household Head Method of Estimation Level of Estimation Estimation Approaches Systematic Comparison Indicator Trend Function Econometric Regression Complex System Modeling Rationale for the Choice of Estimation Approach Models Specification Investment in Capital Equipment Equation Investment on Soil Conservation Measures Equation Soil Fertility Maintenance and Enhancement Equation Agricultural Productivity Equation Strengths and Limitations of the Methodology ECONOMIC ESTIMATION OF LAND RIGHTS IMPACT Impact of the Land Property Rights on Agricultural Investment Impact on Investment in Equipment Impact to Land Property Rights Impact of other Factors Impact Investment in Soil Conservation Measures 136

6 Impact of Land Property Rights Impact of other Factors Impact on Investment in Soil Fertility Enhancement and Maintenance Impact on Chemical Fertilizer Use Impact on Manure Use Impact of Land Property Rights on the Productivity Impact of Land Rights by Using Tornqvist Index of Efficiency Impact of Land Rights by Using Total Factors of Productivity Index Impact of Other Factors 149 Concluding Remarks FACTORS AFFECTING FARMERS'DECISIONS OF PARTICIPATION IN LAND TITLING Methodological Approaches to Analyze the Farmer's Decision of Participation in Land Titling Rationale for Choice of Methodological Approach Specification of the Empirical Model Indicators of Participation in Land Titling Independent Variables Empirical Models Estimation Procedure Empirical Results and Discussion 158 Concluding Remarks CONCLUSIONS AND POLICY RECOMMENDATIONS Summary of Major Findings Policy Recommendations Short- and Medium Term Priorities Subsidized Credit for Titling Create New Branch Offices Collective Land Titling Gradual Approach of Implementation of Land Titling Promotion of Private Partnership Use of Geographic Information System (GIS) Long-Term Priorities Recommendations for Further Research 172 ZUSAMMENFASSUNG (SUMMARY IN GERMAN) 175 REFERENCES 183

7 LIST OF TABLES Table2.1 Madagascar GDP Growth Rates, Table 2.2: Livestock Production, Table 2.3: Trends of Slaughtering, Table 3.1: Distribution of Titled Land by Provinces, Table 3.2: Cost of Land Registration by Activity 28 Table 4.1: Characteristics of Road Infrastructure 48 Table 5.1: Means and Standard Deviation of Selected Socioeconomic Characteristics of Survey Households, by Region 56 Table 5.2: Correlation Between Farm Size and Households Characteristics 58 Table 5.3: Distribution Pattern of Land in the Sample 58 Table 5.4: Correlation Between Size of Land with other Variables 64 Table 5.5: Correlation Between Title Status Variable and others Variables Table 5.6: Correlation Between Willingness To Pay and others Variables Table 5.7: Value of Inputs per Are in Malagasy Franc (MgF) by Title Status and Mode of Acquisition of Land 68 Table 5.8: Correlation Between Output and others Variables 69 Table 5.9: Value of Output per Are in Malagasy Franc (MgF) by Title Status and Mode of Acquisition of Land 70 Table 5.10: Ownership of Agricultural Material and Equipment 71 Table 5.11: Correlation Between Value of Equipment per Household in Malagasy Franc (MgF) and others Variables 73 Table 5.12: Proportion of Different Type of Soil Conservation 74 Measures Table 5.13: Adoption Rate of "Ditch and Hedge" 74 Table 5.14: Farm Household Characteristics of Respondents to "Ditch and Hedge" 75 Table 5.15: Proportion (%) of Households and Loan Size by Credit Source 76 Table 5.16: Proportion (%) of Households per Farm Size Receiving Formal Loan 76 Table 6.1: Studies of Impacts of Land Titling on Agricultural Productivity in Africa 85 Table 6.2: Study Cases of Evolutionary Theory of Land Rights in Africa Table 6.3: Models Testing the Links Between Tenure Security, Investment on Land, and Agricultural Productivity in Sub-Saharan Africa Countries 96 Table 7.1: Frequency Distribution of Sample Households According to Land Rights 101 Table 7.2: Land Rights Indexes by Region, Table 7.3: Methods of Measurement of Relative Technical Efficiency Level 111 Table 7.4: Economic Indexes by Region, Table 8.1: Determinants of Investment in Equipment 135 Table 8.2: Proportion of Different Type of Soil Conservation Measures 136

8 Table 8.3: Adoption Factors of "Ditch and Hedge" 138 Table 8.4: Double Hurdle Model for Factors Affecting the Intensity of Investment in " Ditch and Hedge" 140 Table 8.5 Use of Chemical Fertilizer and Manure at Farm Level, by Region 142 Table 8.6: Determinants of the Fertilizer Use on Lowland 143 Table 8.7: Tornqvist Index, by Region 145 Table 8.8: Determinants of Farmer's Productivity 146 Table 8.9: Total Factor of Productivity Index, by Region 147 Table 8.10: Determinants of Farmer's Productivity...! 148 Table 9.1 Participation Rate in Land Titling 155 Table 9.2: Indexes of Participation in Land Titling by Region, Table 9.3: Description of Variables Explaining the Participation in Land Titling 156 Table 9.4: Determinant Factors of Farmer's Decision of Participation in Land Titling 159 Table Al.l: Characteristics of TFP Index Variable 193 Table A1.2: ANOVA Test for TFP Index Variable 193 Table A1.3: Multiple Comparisons of TFP Index with Tamhane Test 193 Table A1.4: ANOVA Test for TFP Index Variable 194 Table A2.1: Likelihood Ratio Test of for Model Specification 195