Land ownership security and farm productivity: Evidence from Thailand

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Abstract
The article discusses the impact of land ownership security on farmers’ input use and output value. Economic theory suggests that farmers with secure legal ownership will have more incentives and better ability to invest, due to a lower perceived risk and a favourable access to institutional credit. This leads to higher variable inputs use and higher output per unit of land. The article uses farm level data from three provinces in Thailand to test the above propositions. The data pertain to samples of squatters, who lack secure legal ownership, as contrasted with legally titled farmers. The results confirm that the provision of secure ownership in LDCs can increase productivity significantly.