IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i23p15762-d985277.html
   My bibliography  Save this article

Success Factors of Cross-Border Agricultural Investments for Opium Poppy Alternative Project under China’s Belt and Road Initiative

Author

Listed:
  • Yan Jin

    (School of Economics and Management, Yunnan Agricultural University, 95# Jinhei Road, Panlong District, Kunming 650201, China)

  • Liyun Zhang

    (Institute of International Rivers and Eco-Security, Yunnan University, South Section, East Outer Ring Road, Chenggong District, Kunming 650500, China
    Yunnan Key Laboratory of International Rivers and Transboundary Eco-Security, Yunnan University, South Section, East Outer Ring Road, Chenggong District, Kunming 650500, China
    Asian International Rivers Center, Yunnan University, South Section, East Outer Ring Road, Chenggong District, Kunming 650500, China)

  • Lu Feng

    (School of Economics and Management, Yunnan Agricultural University, 95# Jinhei Road, Panlong District, Kunming 650201, China)

Abstract

Cross-border agricultural investments (CBAIs) are considered to be an essential strategy that is expected to bridge the gap between poverty reduction and rural development in marginalized regions. Agricultural investments serve as a necessary indicator of the performance of international cooperation in China’s Belt and Road Initiative. It is of great significance to summarize the success factors of Chinese investors under this initiative and, more importantly, to improve the sustainability of CBAI projects and associated rural development. Extensive opium poppy cultivation is a barrier to poverty reduction in marginalized communities in less-developed countries such as Laos and Myanmar. The CBAIs in the opium poppy alternative (OPA) project conducted by Chinese agricultural companies aim to reduce drug crop cultivation and rural poverty based on a perspective of economic development. However, little is known about how participating companies cooperate with ex-poppy farmers to achieve investment success. In this study, we adopted case interviews and questionnaire surveys from Chinese agricultural companies in the China–Myanmar–Laos border region, with the aim to explore the success factors of CBAIs in the OPA project under China’s Belt and Road Initiative. The results indicated that the success of agricultural companies involved in the OPA project depended on three key factors, including (1) institutional and employee capacity building, (2) responses to policy and market incentives, and (3) support for the participation of ex-poppy farmers and community development. Our findings contribute to the theoretical and practical understanding of capacity improvements for foreign investors in China’s Belt and Road Initiative and shed light on the support of international agricultural cooperation for rural livelihood improvement.

Suggested Citation

  • Yan Jin & Liyun Zhang & Lu Feng, 2022. "Success Factors of Cross-Border Agricultural Investments for Opium Poppy Alternative Project under China’s Belt and Road Initiative," Sustainability, MDPI, vol. 14(23), pages 1-16, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:23:p:15762-:d:985277
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/23/15762/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/23/15762/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Santangelo, Grazia D., 2018. "The impact of FDI in land in agriculture in developing countries on host country food security," Journal of World Business, Elsevier, vol. 53(1), pages 75-84.
    2. Li, Chang & Yang, Lianxing, 2020. "Import to invest: Impact of cultural goods on cross-border mergers and acquisitions," Economic Modelling, Elsevier, vol. 93(C), pages 354-364.
    3. Futoshi Yamauchi, 2016. "The Effects of Improved Roads on Wages and Employment: Evidence from Rural Labour Markets in Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 52(7), pages 1046-1061, July.
    4. de Janvry, Alain & Sadoulet, Elisabeth, 2020. "Using agriculture for development: Supply- and demand-side approaches," World Development, Elsevier, vol. 133(C).
    5. Thomson, Frances & Parada-Hernández, Monica & Acero, Camilo, 2022. "Land formalization – The new magic bullet in counternarcotics? A case study of coca cultivation and tenure (in)formality from Colombia," World Development, Elsevier, vol. 149(C).
    6. Keovilignavong, Oulavanh & Suhardiman, Diana, 2020. "Linking land tenure security with food security: Unpacking farm households’ perceptions and strategies in the rural uplands of Laos," Land Use Policy, Elsevier, vol. 90(C).
    7. Kenneth S Law & Lynda Jiwen Song & Chi-Sum Wong & Donghua Chen, 2009. "The antecedents and consequences of successful localization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(8), pages 1359-1373, October.
    8. Benevenuto, Rodolfo & Caulfield, Brian, 2019. "Poverty and transport in the global south: An overview," Transport Policy, Elsevier, vol. 79(C), pages 115-124.
    9. Dadson Awunyo-Vitor & Ruby Adjoa Sackey, 2018. "Agricultural sector foreign direct investment and economic growth in Ghana," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-15, December.
    10. Sergio G. Lazzarini, 2015. "Strategizing by the government: Can industrial policy create firm-level competitive advantage?," Strategic Management Journal, Wiley Blackwell, vol. 36(1), pages 97-112, January.
    11. Xiaoyang Chen,Maggie & Lin,Chuanhao, 2018. "Foreign Investment across the Belt and Road : Patterns, Determinants, and Effects," Policy Research Working Paper Series 8607, The World Bank.
    12. Raitzer, David A. & Maredia, Mywish K., 2012. "Analysis of agricultural research investment priorities for sustainable poverty reduction in Southeast Asia," Food Policy, Elsevier, vol. 37(4), pages 412-426.
    13. Mazé, Dominique & Chailan, Claude, 2021. "A South-South perspective on emerging economy companies and institutional coevolution: An empirical study of Chinese multinationals in Africa," International Business Review, Elsevier, vol. 30(4).
    14. Dhahri, Sabrine & Omri, Anis, 2020. "Foreign capital towards SDGs 1 & 2—Ending Poverty and hunger: The role of agricultural production," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 208-221.
    15. Hongxing Yao & Mohammed Ismail Alhussam & Omar Abu Risha & Bilal Ahmed Memon, 2020. "Analyzing the Relationship between Agricultural FDI and Food Security: Evidence from Belt and Road Countries," Sustainability, MDPI, vol. 12(7), pages 1-20, April.
    16. repec:cdl:agrebk:qt40x818wj is not listed on IDEAS
    17. Vicol, Mark & Pritchard, Bill & Htay, Yu Yu, 2018. "Rethinking the role of agriculture as a driver of social and economic transformation in Southeast Asia’s upland regions: The view from Chin State, Myanmar," Land Use Policy, Elsevier, vol. 72(C), pages 451-460.
    18. Yang, Yin & Liu, Qin & Song, Jin & Zhou, Ming, 2021. "The influence mechanism of financial shared service mode on the competitive advantage of enterprises from the perspective of organizational complexity: A force field analysis," International Journal of Accounting Information Systems, Elsevier, vol. 42(C).
    Full references (including those not matched with items on IDEAS)

    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. Sanjay Kumar PATEL & Devashish JOSHI, 2023. "Impact of FDI and energy consumption on the agricultural productivity of BRICS nations," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(636), A), pages 315-322, Autumn.
    2. Linus Nyiwul & Niraj P. Koirala, 2022. "Role of foreign direct investments in agriculture, forestry and fishing in developing countries," Future Business Journal, Springer, vol. 8(1), pages 1-12, December.
    3. Samdrup, Tshering & Fogarty, James & Pandit, Ram & Iftekhar, Md. Sayed & Dorjee, Kinlay, 2023. "Does FDI in agriculture in developing countries promote food security? Evidence from meta-regression analysis," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1255-1272.
    4. Osinubi, Tolulope Temilola & Apanisile, Olumuyiwa Tolulope, . "Effect of Agricultural Investment On Food Security in Sub-Saharan Africa: What Role Does Institution Play?," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 9(2).
    5. Kruseman, Gideon & Dermawan, Ahmad & Diagne, Mandiaye & Enahoro, Dolapo & Frija, Aymen & Gatto, Marcel & Gbegbelegbe, Sika & Komarek, Adam M. & Mausch, Kai & Mottaleb, Khondoker, 2021. "Foresight for income and employment: What can we learn for agricultural research for development," SocArXiv 783rw, Center for Open Science.
    6. Newburry, William & Gardberg, Naomi A. & Sanchez, Juan I., 2014. "Employer Attractiveness in Latin America: The Association Among Foreignness, Internationalization and Talent Recruitment," Journal of International Management, Elsevier, vol. 20(3), pages 327-344.
    7. repec:osf:socarx:783rw_v1 is not listed on IDEAS
    8. Alexander Kalita & Alexander Chepurenko, 2020. "Competitiveness of Small and Medium Businesses and Competitive Pressure in the Manufacturing Industry," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 14(2), pages 36-50.
    9. Noah Kaiser & Christina K. Barstow, 2022. "Rural Transportation Infrastructure in Low- and Middle-Income Countries: A Review of Impacts, Implications, and Interventions," Sustainability, MDPI, vol. 14(4), pages 1-48, February.
    10. Berna Dogan, . "Does FDI in agriculture promote food security in developing countries? The role of land governance," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    11. Figueiredo, Paulo N., 2016. "Evolution of the short-fiber technological trajectory in Brazil's pulp and paper industry: The role of firm-level innovative capability-building and indigenous institutions," Forest Policy and Economics, Elsevier, vol. 64(C), pages 1-14.
    12. Ceballos, Francisco & Chugh, Aditi & Kramer, Berber, 2024. "Impacts of personalized picture-based crop advisories: Experimental evidence from India and Kenya," IFPRI discussion papers 2322, International Food Policy Research Institute (IFPRI).
    13. Shahid Ali & Junrui Zhang & Muhammad Usman & Muhammad Kaleem Khan & Farman Ullah Khan & Muhammad Abubakkar Siddique, 2020. "Do tournament incentives motivate chief executive officers to be socially responsible?," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 35(5), pages 597-619, February.
    14. Junyan Tian, 2023. "Does agricultural official development assistance facilitate foreign direct investment in agriculture: Evidence from 63 developing countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 702-718, September.
    15. Lei Fu & Weiyi Liang, 2025. "How Improving the Quality of Foreign Direct Investment Can Promote Sustainable Development: Evidence from China," Sustainability, MDPI, vol. 17(9), pages 1-29, April.
    16. Junguo Shi & Bert M. Sadowski & Xinru Zeng & Shanshan Dou & Jie Xiong & Qiuya Song & Sihan Li, 2023. "Picking winners in strategic emerging industries using government subsidies in China: the role of market power," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    17. Francesco Zecca & Marco D'Errico, 2021. "Food security and land use: The Ethiopian case," Economia agro-alimentare, FrancoAngeli Editore, vol. 23(2), pages 1-22.
    18. Ku McMahan & Saad Usmani, 2022. "The Economic Benefits of Supporting Private Social Enterprise at the Nexus of Water and Agriculture: A Social Rate of Return Analysis of the Securing Water for Food Grand Challenge for Development," Sustainability, MDPI, vol. 14(10), pages 1-16, May.
    19. Sovacool, Benjamin K. & Daniels, Chux & AbdulRafiu, Abbas, 2022. "Transitioning to electrified, automated and shared mobility in an African context: A comparative review of Johannesburg, Kigali, Lagos and Nairobi," Journal of Transport Geography, Elsevier, vol. 98(C).
    20. Hiroyuki Okamuro & Junichi Nishimura, 2021. "Effects of multilevel policy mix of public R&D subsidies: Empirical evidence from Japanese local SMEs [The Impact of R&D Subsidies on R&D Employment Composition]," Science and Public Policy, Oxford University Press, vol. 48(6), pages 829-840.
    21. Laura Lecluyse & Mirjam Knockaert & Annelore Huyghe, 2023. "It is not because it is offered that it is used: an investigation into firm-level determinants of use intensity of buffering services in science parks," Small Business Economics, Springer, vol. 61(1), pages 85-104, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:gam:jsusta:v:14:y:2022:i:23:p:15762-:d:985277. 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.