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What Drives the Global Land Rush?

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  • Harris Selod
  • Klaus W. Deininger
  • Rabah Arezki

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 indicators of 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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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 11/251.

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Length: 35
Date of creation: 01 Nov 2011
Date of revision:
Handle: RePEc:imf:imfwpa:11/251

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Keywords: Agroindustries; Economic models; Land tenure; forest; investors; land acquisition; forest land; forest area; investor protection; forests; agricultural land; investment projects; direct investment; foreign direct investment; foreign investment; land rights; cultivated land; commodity prices; land users; expropriation; multinational firms; land reform; forest plantations; investment flows; land policy; global capital; land owners; forestry law; agricultural land use; forest sector; land quality; arable land; land clearing; land tenure security; private equity; center for international forestry research; cultivable land; forestry research; investment decisions; public investment; environmental protection; contract enforcement; forest resources; forestry industry; investment climate; land tenure systems; investment needs; international finance; rates of return; institutional investors;

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Citations

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Cited by:
  1. Christophe Gouel, 2013. "Food Price Volatility and Domestic Stabilization Policies in Developing Countries," NBER Working Papers 18934, National Bureau of Economic Research, Inc.
  2. Das, Gouranga, 2012. "Trans-border Land Acquisitions: A New Guise of Outsourcing and Host Country Effects," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. 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.
  4. 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.
  5. 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.
  6. 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..
  7. 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).

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