IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v11y2022i11p2090-d978053.html
   My bibliography  Save this article

Spatial Distribution Characteristics and Influencing Factors of the Success or Failure of China’s Overseas Arable Land Investment Projects—Based on the Countries along the “Belt and Road”

Author

Listed:
  • Linyan Ma

    (School of Economics and Management, Northwest A&F University, Yangling 712100, China
    These authors contributed equally to this work.)

  • Zichun Pan

    (School of Economics and Management, Northwest A&F University, Yangling 712100, China
    These authors contributed equally to this work.)

  • Yameng Wang

    (School of Economics, Qufu Normal University, Rizhao 276826, China)

  • Feng Wei

    (School of Economics and Management, Northwest A&F University, Yangling 712100, China)

Abstract

As globalization continues, overseas arable land investment is becoming a viable option for China to alleviate its agricultural growth constraints, and the “Belt and Road” initiative offers plenty of opportunities for China to invest in overseas arable land. This study used data from the Land Matrix, KOF, World Bank, CEPII, UNCTAD and other databases to analyze the spatial distribution characteristics and factors influencing the success or failure of China’s overseas farmland investment projects in countries along the “Belt and Road” project through spatial analysis and the Logit model. The results show that North America has the largest share of production versus contracted acreage in current acreage investment cases, and Asian projects have the highest success rate. Both successful and failed projects in China regarding arable land investment are highly correlated spatially and characterized by a strong concentration and low uniformity of distribution, with differences in the degree of concentration in Asia, Africa and other regions. The contracted area, host country participation and host country resource endowment, business environment and institutional quality have significant, inverted “U-shaped”, negative and positive effects on project success, respectively. In addition, the involvement of the host country has a significant negative impact on the success of investment projects in Africa, and the length of investment and the type of investment purpose have a significant positive and negative impact on the success of investment projects in Asian countries. Therefore, China’s overseas arable land investment should be based on a full examination of existing investment projects in each country, the selection of host countries with abundant resource endowments and a good business environment and institutional environment and the adoption of a model suitable for each location to carry out investments according to local conditions.

Suggested Citation

  • Linyan Ma & Zichun Pan & Yameng Wang & Feng Wei, 2022. "Spatial Distribution Characteristics and Influencing Factors of the Success or Failure of China’s Overseas Arable Land Investment Projects—Based on the Countries along the “Belt and Road”," Land, MDPI, vol. 11(11), pages 1-19, November.
    • Handle: RePEc:gam:jlands:v:11:y:2022:i:11:p:2090-:d:978053
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/11/11/2090/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/11/11/2090/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 1-26, September.
    2. Guy L. F. Holburn & Bennet A. Zelner, 2010. "Political capabilities, policy risk, and international investment strategy: evidence from the global electric power generation industry," Strategic Management Journal, Wiley Blackwell, vol. 31(12), pages 1290-1315, December.
    3. Alan M. Rugman & Alain Verbeke, 2005. "A Perspective on Regional and Global Strategies of Multinational Enterprises," Chapters, in: Analysis of Multinational Strategic Management, chapter 8, pages 104-119, Edward Elgar Publishing.
    4. Globerman, Steven & Shapiro, Daniel, 2002. "Global Foreign Direct Investment Flows: The Role of Governance Infrastructure," World Development, Elsevier, vol. 30(11), pages 1899-1919, November.
    5. Michael A Witt & Arie Y Lewin, 2007. "Outward foreign direct investment as escape response to home country institutional constraints," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 579-594, July.
    6. Yameng Wang & Apurbo Sarkar & Linyan Ma & Qian Wu & Feng Wei, 2021. "Measurement of Investment Potential and Spatial Distribution of Arable Land among Countries within the “Belt and Road Initiative”," Agriculture, MDPI, vol. 11(9), pages 1-23, September.
    7. Lu, Xinhai & Ke, Shangan & Cheng, Tao & Chen, Ting, 2018. "The impacts of large-scale OFI on grains import: Empirical research with double difference method," Land Use Policy, Elsevier, vol. 76(C), pages 352-358.
    8. Sochanny Hak & John McAndrew & Andreas Neef, 2018. "Impact of Government Policies and Corporate Land Grabs on Indigenous People’s Access to Common Lands and Livelihood Resilience in Northeast Cambodia," Land, MDPI, vol. 7(4), pages 1-20, October.
    9. Jennifer Tobin & Susan Rose-Ackerman, 2011. "When BITs have some bite: The political-economic environment for bilateral investment treaties," The Review of International Organizations, Springer, vol. 6(1), pages 1-32, March.
    10. John H Dunning, 1998. "Location and the Multinational Enterprise: A Neglected Factor?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(1), pages 45-66, March.
    11. Mudambi, Ram & Navarra, Pietro, 2002. "Institutions and internation business: a theoretical overview," International Business Review, Elsevier, vol. 11(6), pages 635-646, December.
    12. Lu, Xinhai & Li, Yan & Ke, Shangan, 2020. "Spatial distribution pattern and its optimization strategy of China’s overseas farmland investments," Land Use Policy, Elsevier, vol. 91(C).
    13. von Braun, Joachim & Meinzen-Dick, Ruth Suseela, 2009. ""Land grabbing" by foreign investors in developing countries: Risks and opportunities," Policy briefs 13, International Food Policy Research Institute (IFPRI).
    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. Mingzhi Zhang & Xiangyu Zhou & Chao Chen & Jianxu Liu & Jiaxi Li & Fuying Huan & Bowen Wang, 2023. "Enterprise Spatial Agglomeration and Economic Growth in Northeast China: Policy Implications for Uneven to Sustainable Development," Sustainability, MDPI, vol. 15(15), pages 1-17, July.

    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. Clampit, Jack & Gaffney, Nolan & Fabian, Frances & Stafford, Thomas, 2023. "Institutional misalignment and escape-based FDI: A prospect theory lens," International Business Review, Elsevier, vol. 32(3).
    2. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    3. Oludotun Fasanya, David & Ingham, Hilary & Read, Robert, 2022. "Determinants of internationalisation by firms from Sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 144(C), pages 951-965.
    4. Nielsen, Bo Bernhard & Asmussen, Christian Geisler & Weatherall, Cecilie Dohlmann, 2017. "The location choice of foreign direct investments: Empirical evidence and methodological challenges," Journal of World Business, Elsevier, vol. 52(1), pages 62-82.
    5. Vera Kunczer & Thomas Lindner & Jonas Puck, 2019. "Benefitting from immigration: The value of immigrants’ country knowledge for firm internationalization," Journal of International Business Policy, Palgrave Macmillan, vol. 2(4), pages 356-375, December.
    6. Alvaro Cuervo-Cazurra & Bernardo Silva-Rêgo & Ariane Figueira, 2022. "Financial and fiscal incentives and inward foreign direct investment: When quality institutions substitute incentives," Journal of International Business Policy, Palgrave Macmillan, vol. 5(4), pages 417-443, December.
    7. James, Barclay E. & Sawant, Rajeev J. & Bendickson, Joshua S., 2020. "Emerging market multinationals’ firm-specific advantages, institutional distance, and foreign acquisition location choice," International Business Review, Elsevier, vol. 29(5).
    8. De Villa, Maria A. & Rajwani, Tazeeb & Lawton, Thomas, 2015. "Market entry modes in a multipolar world: Untangling the moderating effect of the political environment," International Business Review, Elsevier, vol. 24(3), pages 419-429.
    9. Fathi Ali & Norbert Fiess & Ronald MacDonald, 2010. "Do Institutions Matter for Foreign Direct Investment?," Open Economies Review, Springer, vol. 21(2), pages 201-219, April.
    10. Choi, Gunae, 2022. "Determinants of target location selection for acquirers in the manufacturing sector: Pollution intensity, policy enforcement, and civic environmentalism," Journal of Business Research, Elsevier, vol. 146(C), pages 308-324.
    11. Cuervo-Cazurra, Alvaro & Ciravegna, Luciano & Melgarejo, Mauricio & Lopez, Luis, 2018. "Home country uncertainty and the internationalization-performance relationship: Building an uncertainty management capability," Journal of World Business, Elsevier, vol. 53(2), pages 209-221.
    12. Klaus E. Meyer & Hung Vo Nguyen, 2005. "Foreign Investment Strategies and Sub‐national Institutions in Emerging Markets: Evidence from Vietnam," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 63-93, January.
    13. Daniel Shapiro & Yao Tang & Cathy Xuejing, 2007. "Mode of Entry and the Regional Distribution of Foreign Direct Investment in China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 5(3), pages 261-277.
    14. Donnelly, Róisín & Manolova, Tatiana S., 2020. "Foreign location decisions through an institutional lens: A systematic review and future research agenda," International Business Review, Elsevier, vol. 29(4).
    15. Godinez, Jose R. & Liu, Ling, 2015. "Corruption distance and FDI flows into Latin America," International Business Review, Elsevier, vol. 24(1), pages 33-42.
    16. Klimek Artur, 2015. "Institutions and Outward Foreign Direct Investment," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 46(1), pages 101-119, June.
    17. Jiang, Guoliang F. & Holburn, Guy L.F. & Beamish, Paul W., 2016. "The spatial structure of foreign subsidiaries and MNE expansion strategy," Journal of World Business, Elsevier, vol. 51(3), pages 438-450.
    18. Madhav Joshi & Jason Michael Quinn, 2020. "Civil war termination and foreign direct investment, 1989–2012," Conflict Management and Peace Science, Peace Science Society (International), vol. 37(4), pages 451-470, July.
    19. Kottaridi, Constantina & Giakoulas, Dimitris & Manolopoulos, Dimitris, 2019. "Escapism FDI from developed economies: The role of regulatory context and corporate taxation," International Business Review, Elsevier, vol. 28(1), pages 36-47.
    20. Clegg, Jeremy & Lin, Hsin Mei & Voss, Hinrich & Yen, I-Fan & Shih, Yi Tien, 2016. "The OFDI patterns and firm performance of Chinese firms: The moderating effects of multinationality strategy and external factors," International Business Review, Elsevier, vol. 25(4), pages 971-985.

    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:gam:jlands:v:11:y:2022:i:11:p:2090-:d:978053. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.