IMF Working Papers

What Drives the Global Land Rush?

By Harris Selod, KLAUS DEININGER, Rabah Arezki

November 1, 2011

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Harris Selod, KLAUS DEININGER, and Rabah Arezki. What Drives the Global Land Rush?, (USA: International Monetary Fund, 2011) accessed September 24, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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 indicators of 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.

Subject: Balance of payments, Capital flows, Food imports, Foreign direct investment, International trade, Land prices, Population and demographics, Prices

Keywords: Capital flows, Destination country, Food imports, Foreign direct investment, Foreign Investments Agro-Ecological Potential, Global, Host country characteristic, Investor country variable, Land Acquisition, Land Availability, Land Governance, Land governance index, Land governance indicator, Land prices, Large-Scale Agriculture, Origin country, Property Rights, Smallholder land ownership-such as Costa Rica, Sub-Saharan Africa, WP

Publication Details

  • Pages:

    35

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2011/251

  • Stock No:

    WPIEA2011251

  • ISBN:

    9781463923334

  • ISSN:

    1018-5941

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