Customary Land Conversion and the Formation of the African City

As cities grow and spatially expand, agricultural land is converted into residential land. In many developing countries, especially in Sub-Saharan Africa, this process is accompanied by a change in land tenure, whereby plots held under traditional...

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Main Authors: Picard, Pierre M., Selod, Harris
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
Online Access:http://documents.worldbank.org/curated/en/184281584971290852/Customary-Land-Conversion-and-the-Formation-of-the-African-City
http://hdl.handle.net/10986/33484
id okr-10986-33484
recordtype oai_dc
spelling okr-10986-334842022-09-20T00:13:07Z Customary Land Conversion and the Formation of the African City Picard, Pierre M. Selod, Harris URBANIZATION LAND MARKET PROPERTY RIGHTS MARKET FAILURE As cities grow and spatially expand, agricultural land is converted into residential land. In many developing countries, especially in Sub-Saharan Africa, this process is accompanied by a change in land tenure, whereby plots held under traditional customary arrangements are sold to new urban residents, possibly with formal property rights. This paper studies joint land-use and land-tenure conversion in an urban economics model in which intermediaries purchase agricultural land from customary owners and attempt to transform it into residential plots with statutory property rights. The spatial equilibrium includes a mix of land uses and rights where statutory and non-statutory residential plots coexist with customary land that is mainly used for agriculture. Because customary ownership is subject to uncertainty (because of tenure insecurity), the conversion process includes a potential information asymmetry between customary owners and intermediaries. The analysis shows that a market failure may emerge whereby some customary owners prefer to continue farming their land rather than participate in the urban residential land market, which results in a city that is too small. Empirical analysis using Malian data validates the key features of the model captured by land price gradients, as well as the ranking and the variance of land prices, and is suggestive of the presence of information asymmetry. 2020-03-26T14:19:40Z 2020-03-26T14:19:40Z 2020-03 Working Paper http://documents.worldbank.org/curated/en/184281584971290852/Customary-Land-Conversion-and-the-Formation-of-the-African-City http://hdl.handle.net/10986/33484 English Policy Research Working Paper;No. 9192 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Mali
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic URBANIZATION
LAND MARKET
PROPERTY RIGHTS
MARKET FAILURE
spellingShingle URBANIZATION
LAND MARKET
PROPERTY RIGHTS
MARKET FAILURE
Picard, Pierre M.
Selod, Harris
Customary Land Conversion and the Formation of the African City
geographic_facet Africa
Mali
relation Policy Research Working Paper;No. 9192
description As cities grow and spatially expand, agricultural land is converted into residential land. In many developing countries, especially in Sub-Saharan Africa, this process is accompanied by a change in land tenure, whereby plots held under traditional customary arrangements are sold to new urban residents, possibly with formal property rights. This paper studies joint land-use and land-tenure conversion in an urban economics model in which intermediaries purchase agricultural land from customary owners and attempt to transform it into residential plots with statutory property rights. The spatial equilibrium includes a mix of land uses and rights where statutory and non-statutory residential plots coexist with customary land that is mainly used for agriculture. Because customary ownership is subject to uncertainty (because of tenure insecurity), the conversion process includes a potential information asymmetry between customary owners and intermediaries. The analysis shows that a market failure may emerge whereby some customary owners prefer to continue farming their land rather than participate in the urban residential land market, which results in a city that is too small. Empirical analysis using Malian data validates the key features of the model captured by land price gradients, as well as the ranking and the variance of land prices, and is suggestive of the presence of information asymmetry.
format Working Paper
author Picard, Pierre M.
Selod, Harris
author_facet Picard, Pierre M.
Selod, Harris
author_sort Picard, Pierre M.
title Customary Land Conversion and the Formation of the African City
title_short Customary Land Conversion and the Formation of the African City
title_full Customary Land Conversion and the Formation of the African City
title_fullStr Customary Land Conversion and the Formation of the African City
title_full_unstemmed Customary Land Conversion and the Formation of the African City
title_sort customary land conversion and the formation of the african city
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/184281584971290852/Customary-Land-Conversion-and-the-Formation-of-the-African-City
http://hdl.handle.net/10986/33484
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