Tenure Security, Resource Endowments, and Tree Growing: Evidence from the Amhara Region of Ethiopia

We analyze roles of tenure insecurity and household endowments in explaining tree growing in Ethiopia, where farmers cannot sell or mortgage land and factor markets are imperfect. Unlike most other studies, we use panel data and examine determinants of the decision and intensity of tree growing. Unlike other studies, we compare the decision to keep trees and the decision to plant in the recent past. The results suggest that land-tenure insecurity influences the decision to grow trees but not the number of trees households grow. Household endowments, time, and location also explain tree growing by farmers. (JEL Q15, Q23)