Factors Influencing the Formalization of Rural Land Transactions in Ethiopia: A Theory of Planned Behavior Approach

Abstract

Despite the recent successful establishment of systematic land registration programs in some African countries including Ethiopia, updating the land registers has become a growing concern. However, there is limited empirical evidence about whether landholders’ behavior is driving the lack of updating land registers in Ethiopia. Using the theory of planned behavior, this study examines the factors that influence landholders’ behavior of formalizing rural land transactions in Ethiopia. Primary and secondary data were collected using surveys, key informant interviews, and a literature review. A total of 206 respondents participated in the survey from the Basona Worena district of the Amhara region, central Ethiopia. A structural equation model and descriptive statistics were used to analyze the survey data and supplemented by qualitative findings. The study findings revealed that landholders’ attitudes and subjective norms have positively and significantly influenced their intentions to formalize land transactions. However, perceived behavioral control has a negative and insignificant influence. The predictive relevance of the research model is significant and indicates strong intentions to formalize but less actual behavior. This behavior can influence the currency of the information in the land register in the near future and degrade the functions and sustainability of the land registration system in Ethiopia. The study findings recommended facilitating the behavioral changes of landholders to transform their strong intentions into actual practice. Policymakers should develop and implement an innovative information value creation strategy including landholder-oriented services that incentivize the formalization of land transactions and helps landholders overcome hurdles created by subjective norms.