Investment and equity effects of land regularisation: the case of Nicaragua

We use data from Nicaragua to examine the impact of award of registered and non-registered title on land values and changes in land-attached investment. Registration, acquisition through purchase, and agrarian reform title all are associated with significant increases in the value of plots. Receipt of registered title is found to increase land values by 30% and at the same time greatly increase the propensity to invest, bringing such investment closer to the optimum. In line with descriptive statistics indicating great demand for land right regularisation especially from the poor, this suggests that titling can have a positive distributional effect. At the same time, the legal validity and official recognition of the titles issued appears to be of great importance.