What Drives the Global Land Rush?

Author/Editor:

Harris Selod ; KLAUS DEININGER ; Rabah Arezki

Publication Date:

November 1, 2011

Electronic Access:

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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.

Series:

Working Paper No. 2011/251

Subject:

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

English

Publication Date:

November 1, 2011

ISBN/ISSN:

9781463923334/1018-5941

Stock No:

WPIEA2011251

Pages:

35

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