Trans-border Land Acquisitions:A New Guise of Outsourcing and Host Country Effects
The rush for land acquisition—primarily driven by food shortage and run for agrofuel—has drawn considerable attention. Some documents published in late 2009, 2010, and 2011 report this phenomenon. Terminological differences aside, it is—quite distinct from materials or service outsourcing—kind of off-shoring farm production to relatively land-abundant nations across borders and exporting them back to mitigate the adverse effects of food insecurity. While the academic literature is not capacious, this paper, first of its kind, attempts to study its (potential) effects in the context of a small open economy subject to exogenous shocks. The presence of a sector subject to land acquisition is central in the analysis. In particular, it furnishes that: (i) increase in world price of agro-business sector causes skewed effects (shrinkage) in manufacturing or innovative sectors, and subsistence sector (via forward and backward linkages), causing vulnerability to price changes; (ii) with attractive premium offered by host, land acquisition will undermine the avowed objective of mitigating food shortage and aggravate income inequality in the host; (iii) technological progress or inducing technological efforts via skill, capacity building, infrastructure developments will have favorable effects if host countries adopt favorable policy climate to foster governance, and education for revitalizing agriculture. Further extensions to address pertinent (stylized) facts are also explored.
|Date of creation:||01 Apr 2012|
|Date of revision:|
|Publication status:||Published in Working Paper of World Institute of Development Economics Research (UNU) 2012-43 (2012): pp. 1-54|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anwar, Sajid, 2006. "Factor mobility and wage inequality in the presence of specialisation-based external economies," Economics Letters, Elsevier, vol. 93(1), pages 88-93, October.
- Gouranga Das, 2009. "A hybrid production structure in trade: theory and implications," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 56(4), pages 359-375, December.
- Ronald W. Jones, 1965. "The Structure of Simple General Equilibrium Models," Journal of Political Economy, University of Chicago Press, vol. 73, pages 557.
- Satya Das, 2005. "Gradual globalization and inequality between and within countries," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 852-869, August.
- Ronald W. Jones, 2000. "Globalization and the Theory of Input Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 026210086x, December.
- 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).
- Bouet, Antoine & Laborde Debucquet, David, 2010. "Economics of export taxation in a context of food crisis," IFPRI discussion papers 994, International Food Policy Research Institute (IFPRI).
- Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-48, December.
- Matthias Weiss, 2004.
"Skill-Biased Technological Change: Is there Hope for the Unskilled?,"
MEA discussion paper series
04045, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- Weiss, Matthias, 2008. "Skill-biased technological change: Is there hope for the unskilled?," Economics Letters, Elsevier, vol. 100(3), pages 439-441, September.
- Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
- Hamid Beladi & Sugata Marjit & Reza Oladi, 2006. "Uniform Technical Progress: Can It Be Harmful?," Pacific Economic Review, Wiley Blackwell, vol. 11(1), pages 33-38, 02.
- Anwar, Sajid, 2009. "Wage inequality, welfare and downsizing," Economics Letters, Elsevier, vol. 103(2), pages 75-77, May.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40651. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.