What Drives the Global Land Rush?

Rabah Arezki, Klaus Deininger and Harris Selod ()

No 3666, CESifo Working Paper Series from CESifo

Abstract: 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.

Keywords: land acquisition; large-scale agriculture; foreign investments agro-ecological potential; land availability; land governance; property rights (search for similar items in EconPapers)
JEL-codes: F21 O13 Q15 Q34 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (20)

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Related works:
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Working Paper: What Drives the Global “Land Rush”? (2015)
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Working Paper: What Drives the Global Land Rush? (2011)
Working Paper: What Drives the Global Land Rush? (2011)
Working Paper: What Drives the Global Land Rush? (2011)
Working Paper: What drives the global"land rush"? (2011)
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