arge capital investments on household welfare

How Important are Investment Indivisibilities for Development? Understanding Land Investment and its Long-Run Impacts in Uganda

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CompletedLand Markets Financial Inclusion Poverty Reduction Development Economics

Research Theme Land Markets | Financial Inclusion | Poverty Reduction | Development Economics

arge capital investments on household welfare

Project overview

This study investigates the long-term impacts of large capital investments on household welfare, land ownership, and poverty reduction in Uganda. Building on a randomized lottery experiment conducted five years earlier, the research follows 1,050 households across the districts of Kagadi, Ibanda, and Ntungamo to examine how different levels of financial support influence investment decisions, land acquisition, income growth, and long-term economic mobility. The study places particular emphasis on understanding why many recipients of larger grants invested in land rather than businesses, and whether these investments generated sustained improvements in household wellbeing.

In addition to evaluating the lasting effects of the original intervention, the project examines how Uganda's land market functions, including land transactions, plot sizes, land appreciation, property rights, and land titling. Using detailed household surveys and economic modelling, the research explores how land indivisibilities, credit constraints, and land tenure systems influence investment opportunities and economic development. The findings will provide new evidence on the relationship between financial inclusion, land markets, and poverty dynamics in low-income settings.

Research impact

The study generates important evidence on the long-term effects of financial interventions and the role of land markets in reducing poverty and promoting economic growth. Its findings inform policies on financial inclusion, land administration, land titling, and rural development while contributing to a better understanding of how investment opportunities can accelerate poverty reduction and inclusive economic development in Uganda.