Institutional challenges to poverty alleviation: Assessing the synergistic impact of land rights, extension, and financial services in Tanzania

Despite decades of reforms, poverty in Tanzania remains widespread, especially in rural areas where agriculture dominates livelihoods. While secure land rights are promoted as a cornerstone of poverty reduction, their effectiveness is limited in contexts where rural credit and agricultural extension services remain weak.

This study investigates the conditions under which tenure security translates into welfare improvements, explicitly testing for complementarities with other institutions. Using nationally representative microdata and a Multinomial Endogenous Switching Regression model to address endogeneity, we estimate the individual and joint effects of land rights, credit, and extension on multiple poverty measures. Results show that land rights in isolation yield modest gains, with limited impact on poverty reduction. The effects are significantly amplified, however, when combined with access to credit and extension.

Available at: https://doi.org/10.55158/DEEPCFWP5