IDEAS home Printed from https://ideas.repec.org/p/zbw/wgspdp/201402.html
   My bibliography  Save this paper

How institutions shape land deals: The role of corruption

Author

Listed:
  • Bujko, Matthias
  • Fischer, Christian
  • Krieger, Tim
  • Meierrieks, Daniel

Abstract

Large-scale land acquisitions, or land grabs, concentrate in developing countries which are also known for their corruption-friendly setting caused by a weak institutional framework. We argue that corrupt elites exploit this given institutional set-up to strike deals with international investors at the expense of the local population. Using panel data for 157 countries from 2000-2011, we provide evidence that these land deals indeed occur more often in countries with higher levels of corruption.

Suggested Citation

  • Bujko, Matthias & Fischer, Christian & Krieger, Tim & Meierrieks, Daniel, 2014. "How institutions shape land deals: The role of corruption," Discussion Paper Series 2014-02, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    • Handle: RePEc:zbw:wgspdp:201402
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/98848/1/790122421.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Toke S. Aidt, 2009. "Corruption, institutions, and economic development," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(2), pages 271-291, Summer.
    2. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," The World Bank Economic Review, World Bank, vol. 29(2), pages 207-233.
    3. Ward Anseeuw & Mathieu Boche & Thomas Breu & Markus Giger & Jann Lay & Peter Messerli & Kerstin Nolte, 2012. "Transnational land deals for agriculture in the global south," Post-Print hal-02875924, HAL.
    4. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Cursed by Resources or Institutions?," The World Economy, Wiley Blackwell, vol. 29(8), pages 1117-1131, August.
    5. Lance Eliot Brouthers & Yan Gao & Jason Patrick McNicol, 2008. "Corruption and market attractiveness influences on different types of FDI," Strategic Management Journal, Wiley Blackwell, vol. 29(6), pages 673-680, June.
    6. Ward Anseeuw & Mathieu Boche & Thomas Breu & Markus Giger & Jann Lay & Peter Messerli & Kerstin Nolte, 2012. "Transnational land deals for agriculture in the global south," Post-Print hal-02875924, HAL.
    7. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," World Bank Economic Review, World Bank Group, vol. 29(2), pages 207-233.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deininger, Klaus & Xia, Fang, 2016. "Quantifying Spillover Effects from Large Land-based Investment: The Case of Mozambique," World Development, Elsevier, vol. 87(C), pages 227-241.
    2. Tim Krieger & Martin Leroch, 2016. "The Political Economy of Land Grabbing," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(3), pages 197-204, October.
    3. Tim Krieger & Daniel Meierrieks, 2016. "Land Grabbing and Ethnic Conflict," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(3), pages 243-260, October.
    4. Deininger,Klaus W. & Xia,Fang & Mate,Aurelio & Payongayong,Ellen & Deininger,Klaus W. & Xia,Fang & Mate,Aurelio & Payongayong,Ellen, 2015. "Quantifying spillover effects from large farm establishments : the case of Mozambique," Policy Research Working Paper Series 7466, The World Bank.
    5. Diergarten, Yorck & Krieger, Tim, 2015. "A note on large-scale land acquisitions, commitment problems and international law," Discussion Paper Series 2015-02, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    6. Cheo, Ambe Emmanuel & Adelhardt, Nora & Krieger, Tim & Berneiser, Jessica & Sanchez Santillano, Federico Alberto & Bingwa, Brendon & Suleiman, Nischa & Thiele, Patricia & Royes, Alvaro & Gudopp, Danie, 2022. "Agrivoltaics across the water-energy-food-nexus in Africa: Opportunities and challenges for rural communities in Mali," Discussion Paper Series 2022-03, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    7. Diergarten Yorck & Krieger Tim, 2015. "Large-Scale Land Acquisitions, Commitment Problems and International Law," The Law and Development Review, De Gruyter, vol. 8(1), pages 217-233, June.
    8. Hirsch, Cornelius & Krisztin, Tamás & See, Linda, 2020. "Water Resources as Determinants for Foreign Direct Investments in Land - A Gravity Analysis of Foreign Land Acquisitions," Ecological Economics, Elsevier, vol. 170(C).
    9. Gianpaolo Rossini, 2017. "Land Grabbing: Last Ditch Effort of Colonialism? A Survey of a Few Contributions and a Couple of Suggestions," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 34(1), pages 79-96, April.
    10. Atuoye, Kilian Nasung & Luginaah, Isaac & Hambati, Herbert & Campbell, Gwyn, 2021. "Who are the losers? Gendered-migration, climate change, and the impact of large scale land acquisitions on food security in coastal Tanzania," Land Use Policy, Elsevier, vol. 101(C).
    11. Koroso, Nesru H. & Zevenbergen, Jaap A. & Lengoiboni, Monica, 2019. "Land institutions’ credibility: Analyzing the role of complementary institutions," Land Use Policy, Elsevier, vol. 81(C), pages 553-564.
    12. Petrescu-Mag, Ruxandra Mălina & Petrescu, Dacinia Crina & Reti, Kinga-Olga, 2019. "My land is my food: Exploring social function of large land deals using food security–land deals relation in five Eastern European countries," Land Use Policy, Elsevier, vol. 82(C), pages 729-741.
    13. Ahlerup, Pelle & Tengstam, Sven, 2015. "Do the land-poor gain from agricultural investments? Empirical evidence from Zambia using panel data," Working Papers in Economics 624, University of Gothenburg, Department of Economics.
    14. Scoppola, M. & Raimondi, V., 2018. "Foreign Land Acquisitions and Environmental Regulations: does the Pollution-Haven Hypothesis hold?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277098, International Association of Agricultural Economists.
    15. Krieger, Tim & Meierrieks, Daniel, 2014. "How to deal with international terrorism," Discussion Paper Series 2014-03, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    16. Valentina Raimondi & Margherita Scoppola, 2022. "Foreign land acquisitions and environmental regulations: Does the pollution‐haven effect hold?," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 172-194, February.
    17. Felix Albrecht & Björn Frank & Simone Gobien & Maren Hartmann & Özcan Ihtiyar & Elina Khachatryan & Nataliya Kusa & Ahmed Rashad & Mohamed Ismail Sabry & Sondos Shaheen & Thomas Stöber, 2016. "The Powerful, the Powerless, and the Grabbing: Non-Nash Land Grabbing in the Lab," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(3), pages 219-242, October.
    18. Antonis M. Koumpias & Jorge Martinez-Vazquez & Eduardo Sanz-Arcega, 2015. "Housing Bubbles and Zoning Corruption: Evidence from Greece and Spain," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1505, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kleemann, Linda & Thiele, Rainer, 2015. "Rural welfare implications of large-scale land acquisitions in Africa: A theoretical framework," Economic Modelling, Elsevier, vol. 51(C), pages 269-279.
    2. Margherita Scoppola & Margherita Scoppola, 2016. "Foreign Direct Investments and trade in agriculture: an incomplete contracts approach," FOODSECURE Working papers 49, LEI Wageningen UR.
    3. Maria Cipollina & Nadia Cuffaro & Giovanna D’Agostino, 2018. "Land Inequality and Economic Growth: A Meta-Analysis," Sustainability, MDPI, vol. 10(12), pages 1-20, December.
    4. 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 Kiel).
    5. Giovannetti, Giorgia & Ticci, Elisa, 2016. "Determinants of biofuel-oriented land acquisitions in Sub-Saharan Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 678-687.
    6. Odusola, Ayodele, 2015. "Economic and institutional determinants of foreign land acquisition in Africa: An empirical analysis," UNDP Africa Economists Working Papers 268727, United Nations Development Programme (UNDP).
    7. 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.
    8. Rosete, Alfredo, 2015. "Expropriation and the Location of Farmland Investment: a theoretical investigation into the Land Rush," UMASS Amherst Economics Working Papers 2015-17, University of Massachusetts Amherst, Department of Economics.
    9. Rosete Alfredo R. M., 2018. "Understanding Investor Behavior in the Recent Global Land Rush," Journal of Globalization and Development, De Gruyter, vol. 9(1), pages 1-13, June.
    10. Giger, Markus & Mutea, Emily & Kiteme, Boniface & Eckert, Sandra & Anseeuw, Ward & Zaehringer, Julie G., 2020. "Large agricultural investments in Kenya’s Nanyuki Area: Inventory and analysis of business models," Land Use Policy, Elsevier, vol. 99(C).
    11. Nolte, Kerstin & Voget-Kleschin, Lieske, 2014. "Consultation in Large-Scale Land Acquisitions: An Evaluation of Three Cases in Mali," World Development, Elsevier, vol. 64(C), pages 654-668.
    12. William G. Martin & Ravi Arvind Palat, 2014. "Asian Land Acquisitions in Africa: Beyond the ‘New Bandung’ or a ‘New Colonialism’?," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 3(1), pages 125-150, April.
    13. Kerstin Nolte & Susanne Vaeth, 2013. "Interplay of Land Governance and Large-Scale Agricultural Investment: Evidence from Ghana and Kenya," MAGKS Papers on Economics 201350, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    14. Chamberlin, Jordan & Jayne, T.S., 2020. "Does farm structure affect rural household incomes? Evidence from Tanzania," Food Policy, Elsevier, vol. 90(C).
    15. Valentina Raimondi & Margherita Scoppola, 2022. "Foreign land acquisitions and environmental regulations: Does the pollution‐haven effect hold?," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 172-194, February.
    16. Scoppola, M. & Raimondi, V., 2018. "Foreign Land Acquisitions and Environmental Regulations: does the Pollution-Haven Hypothesis hold?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277098, International Association of Agricultural Economists.
    17. Ayodele F. Odusola, 2014. "Land Grab in Africa: A Review of Emerging Issues and Implications for Policy Options," Working Papers 124, International Policy Centre for Inclusive Growth.
    18. Richard T. Gudaj & Fujin Yi & Svetlana Mishchuk & Tatiana A. Potenko & Ivan Zuenko & Zvi Lerman, 2020. "Impact of Chinese Agribusiness Entrepreneurs on the Local Land Market in the Russian Far East," American Journal of Economics and Sociology, Wiley Blackwell, vol. 79(5), pages 1417-1454, November.
    19. Conigliani, Caterina & Cuffaro, Nadia & D’Agostino, Giovanna, 2018. "Large-scale land investments and forests in Africa," Land Use Policy, Elsevier, vol. 75(C), pages 651-660.
    20. Krukowska, Monika, 2013. "European investors and land acquisitions in Sub-Saharan Africa," Problems of World Agriculture / Problemy Rolnictwa Światowego, Warsaw University of Life Sciences, vol. 13(28), pages 1-11, December.

    More about this item

    Keywords

    large-scale land acquisitions; land grabbing; foreign investments; weak institutions; property rights; corruption; large-N study;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:wgspdp:201402. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/wffrede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.