Finance Seminar Nicola Limodio
The paper asks a fundamental question in development finance: Why are mortgage markets so underdeveloped in many emerging economies, even though land and housing are often households’ main assets?
Using detailed administrative data from Rwanda, the study exploits quasi-experimental variation in 3G internet coverage alongside a nationwide land title reform. The results show that improved mobile connectivity accelerates the distribution of land titles, which households can then use as collateral to access bank loans.
As a result, borrowers increasingly shift from microfinance institutions to formal banks, enabling larger and longer-term loans and supporting greater investment in housing and construction. The analysis further shows that a large share of the effect operates through the property rights channel, as improved documentation of land ownership enables collateralized lending.