Tenure security, investment and the productivity of agricultural farms in the communal area of Kavango West region of Namibia: Any evidence of causality? Uchezuba, D1, Amaambo, P2. & Mbai, S3 1. Senior Lecturer, Department of Agriculture and Natural Resource Sciences, the Namibian University of Science and Technology, P.M.B 1338, Windhoek, Namibia, Tel: +264810425716, E-mail:
[email protected]. (Corresponding author) 2. Post-graduate student, Department of Agriculture and Natural Resource Sciences, the Namibian University of Science and Technology Windhoek, Namibia. Tel: +264 61 207 2327, E-mail:
[email protected] 3. Head of the Department of Agriculture and Natural Resource Sciences, the Namibian University of Science and Technology, Windhoek, Namibia, Tel: +264813902376, Email:
[email protected] Contributed Paper prepared for presentation at the 93rd Annual Conference of the Agricultural Economics Society, University of Warwick, England. 15 – 17 April 2019 Abstract The study aims to determine causality amid the decision to apply for leasehold land right, increased farm investment, and total farm productivity on livestock farms in the Kavango West region of Namibia. Various econometric models have been used to model these relationships in the literature. However, there is a growing concern that methods which do not explicitly account for the endogeneity of regressors and which are used to investigate the relationship between property rights and the economic activities on agricultural farms often produce bias estimates that are inefficient and inconsistent. This study applied an instrumental variable (IV) regression using a survey data of 510 farmers to correct for endogeneity. A test of endogeneity of tenure security, investment, and farm productivity in the various models shows that tenure security is exogenous to farm investment decision and farm productivity.