Arbeitspapier

What drives the global land rush?

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 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.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 3666

Classification
Wirtschaft
International Investment; Long-term Capital Movements
Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
Natural Resources and Domestic and International Conflicts
Subject
land acquisition
large-scale agriculture
foreign investments agro-ecological potential
land availability
land governance
property rights
Agrarboden
Direktinvestition
Ausländisch
Umweltschutz
Eigentumsrecht
Globalisierung
Welt

Event
Geistige Schöpfung
(who)
Arezki, Rabah
Deininger, Klaus
Selod, Harris
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2011

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Arezki, Rabah
  • Deininger, Klaus
  • Selod, Harris
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2011

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