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What Drives the Global Land Rush?

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  • Rabah Arezki
  • Klaus Deininger
  • Harris Selod

Abstract

This paper studies the determinants of foreign land acquisition for large-scale agriculture. To do so, gravity models are estimated using data on bilateral investment relationships, together with newly constructed indicators of agro-ecological suitability in areas with low population density as well as land rights security. Results confirm the central role of agro-ecological potential as a pull factor. In contrast to the literature on foreign investment in general, the quality of the business climate is insignificant whereas weak land governance and tenure security for current users make countries more attractive for investors. Implications for policy are discussed.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3666.

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Date of creation: 2011
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Handle: RePEc:ces:ceswps:_3666

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Keywords: land acquisition; large-scale agriculture; foreign investments agro-ecological potential; land availability; land governance; property rights;

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Cited by:
  1. Kleemann, Linda & Lay, Jann & Nolte, Kerstin & Ott, Konrad & Thiele, Rainer & Voget-Kleschin, Lieske, 2013. "Economic and ethical challenges of "land grabs" in sub-Saharan Africa," Kiel Policy Brief 67, Kiel Institute for the World Economy (IfW).
  2. Das, Gouranga, 2012. "Trans-border Land Acquisitions:A New Guise of Outsourcing and Host Country Effects," MPRA Paper 40651, University Library of Munich, Germany.
  3. Asongu Simplice & Nguena Christian, 2014. "Equitable and Sustainable Development of Foreign Land Acquisitions: what have we learnt on policy syndromes and implications?," Working Papers 14/001, African Governance and Development Institute..
  4. Giorgia Giovannetti & Elisa Ticci, 2013. "Foreign Direct Investment in Sub-Saharan Africa: Drivers and the Challenge of the Land-Energy Nexus," Working Papers - Economics wp2013_09.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  5. Gouel, Christophe, 2013. "Food price volatility and domestic stabilization policies in developing countries," Policy Research Working Paper Series 6393, The World Bank.
  6. Giorgia Giovannetti & Elisa Ticci, 2013. "Biofuel Development and Large-Scale Land Deals in Sub-Saharan Africa," Working Papers - Economics wp2013_27.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  7. Linda Kleemann & Rainer Thiele, 2014. "Rural Welfare Implications of Large-scale Land Acquisitions in Africa: A Theoretical Framework," Kiel Working Papers 1921, Kiel Institute for the World Economy.

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