Land Tenure Security and Access to Finance of Agricultural Households in Cameroon
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Date
2020-11-15
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 to ensure higher
economic efficiency of the land property rights.