Land Tenure Security and Access to Finance of Agricultural Households in Cameroon
Date
2021-07-19
Authors
Raoul, Minfede Koe
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
This study investigates the relationship between the land tenure security and the
financing of agricultural households. The study uses data from the third Cameroun
Household Survey (ECAM3), carried out by the National Institute of Statistics in
2007. The study has two objectives. The first objective investigates the effect of the
land tenure security on the access to finance of agricultural households; the second
assesses the impact of the land tenure security on the volume of credit extended to
agricultural households. The regression switching model is used. The study assumes
formal and informal financing sources. The empirical results reveal different impact
of land property rights on the access to financing of the agricultural households.
Precisely, the legal land title improves by 5.4% the possibility to access to formal
financing. On the other hand, the land title, whether legally of customarily defined,
increases by 20% the possibility of access to informal financing. Such results imply
a double orientation of economic policy. The first should set up a financing scheme
adapted to rural environment. The second should aim to reconcile the legal and
customary land property rights in order to ensure higher economic efficiency of the
land property rights