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Title:What drives the global land rush? PDF Logo
Authors:Arezki, Rabah
Deininger, Klaus
Selod, Harris
Issue Date:2011
Series/Report no.:CESifo working paper: Resource and Environment Economics 3666
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.
Subjects:land acquisition
large-scale agriculture
foreign investments agro-ecological potential
land availability
land governance
property rights
JEL:F21
O13
Q15
Q34
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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