Migration Pressure, Tenure Security, and Agricultural Intensification: Evidence from Indonesia

Michael Grimm and Stephan Klasen

Abstract

We explore the role played by migration-induced population pressure for the endogenous adoption of formal land titles and subsequent investments in land in Central Sulawesi, Indonesia. Using original village- and household-level data we provide evidence that migration pressure increased the incentives to formalize landownership. The adoption of formal land rights was in turn associated with increased expenditures for agricultural inputs and investment in trees, terraces, ditches, and irrigation systems. We show that the availability of a demand-driven land titling system has been critical for increased agricultural intensification in this Indonesian setting. (JEL O12, Q15)

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