Foreign Direct Investment in Sub-Saharan Africa: The Land-Energy Nexus

Giorgia Giovannetti () and Elisa Ticci ()

QA - Rivista dell'Associazione Rossi-Doria, 2013, issue 2

Abstract: his paper explores recent patterns of foreign direct investments (FDI) in land in Sub-Saharan Africa (SSA), with the focus on investment in biofuel crops. It describes the drivers and features of this type of investment compared to general FDI trends in developing countries and SSA. The continent is one of the areas most targeted by international land acquisitions, especially for biofuel projects, but Africa’s increasing attractiveness in this sector is not without risks. Our Zero Inflated Poisson estimates for the number of large-scale international land deals in biofuels in Sub-Saharan countries identify land availability and abundance of water resources combined with weak land governance as significant drivers. These findings indirectly suggest that biofuel-oriented FDI in land on the sub-continent are driven by resource-seeking decisions.

Keywords: FDI; Land grabbing; Biofuels; Africa (search for similar items in EconPapers)
JEL-codes: F21 N57 O13 Q24 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:rar:journl:0261

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