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Land Ownership Security and Farm Investment in Thailand

Author

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  • Gershon Feder
  • Tongroj Onchan
Abstract
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.

Suggested Citation

  • Gershon Feder & Tongroj Onchan, 1987. "Land Ownership Security and Farm Investment in Thailand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 311-320.
    • Handle: RePEc:oup:ajagec:v:69:y:1987:i:2:p:311-320.
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    File URL: http://hdl.handle.net/10.2307/1242281
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