Temporary transfers of land and risk-coping mechanisms in Thailand

This paper uses data collected in Thailand among permanent rural-urban migrants to analyse the motivations in land temporary transfers such as free loans or rentals. Land transfers are here looked at in a continuum and categorized according to three characteristics: the nature of the relationship between the parties of the exchange, the monetary nature of the payment as well as its explicit or imlicit nature. This methodology allows a richer typology than traditionnally used in empiric literature, and distinguishes between various loans that are not always free. The empirical results show that land loans are frequently chosen by households who rely heavily on traditional risk-sharing networks and credit land with a high safety net value. Moreover, the statistical analysis reveal the significance of hybrid transfers such as disguised rental, that combine both rent-seeking and risk-coping motivations. Overall, the paper underlines the importance of risk-coping motivations in the design of land temporary transfers.

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Journal Article