What Drives the Global “Land Rush”?
The 2007-2008 upsurge in agricultural commodity prices gave rise to widespread concern about investors causing a "global land rush". Large land deals can provide opportunities for better access to capital, transfer of technology, and adva...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111031110520 http://hdl.handle.net/10986/3630 |
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okr-10986-3630 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CAPITAL ACCOUNTABILITY ACCOUNTING AGRICULTURAL COMMODITY AGRICULTURAL ECONOMICS AGRICULTURAL LAND AGRICULTURAL LAND USE AGRICULTURAL LANDS AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURE ARABLE LAND ARBITRATION AUCTIONS BANK POLICY BANKS BIODIVERSITY BUSINESS CLIMATE BUSINESS CYCLE CAPITAL FLOW CAPITAL FLOWS CAPITAL MARKETS CENTER FOR INTERNATIONAL FORESTRY RESEARCH COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES CONTRACT ENFORCEMENT CULTIVABLE LAND CULTIVATED AREA CULTIVATED LAND CULTIVATION DEBT DEFAULT RISK DEFORESTATION DEMOCRACY DEVELOPING COUNTRIES DIRECT FOREIGN INVESTMENT DROUGHTS ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE EMERGING ECONOMIES EMPLOYMENT ENVIRONMENTAL BENEFITS ENVIRONMENTAL DAMAGE ENVIRONMENTAL PROTECTION ENVIRONMENTAL RISKS EQUATOR PRINCIPLES EQUITY FUNDS EQUITY MARKETS EXPORT COMPETITIVENESS EXPORTER EXPORTERS EXPROPRIATION EXTERNALITIES FACE VALUE FAIR PRICE FARM SIZE FARMLAND FINANCE CORPORATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SUPPORT FOOD PRICE FOOD PRODUCTION FOREIGN DIRECT INVESTMENT FOREIGN FIRM FOREIGN INVESTMENT FOREIGN INVESTMENT FLOWS FOREIGN INVESTMENTS FOREST FOREST LAND FOREST PLANTATIONS FOREST RESOURCES FOREST SECTOR FORESTRY FORESTRY INDUSTRY FORESTRY LAW FORESTS GEOGRAPHIC DISTRIBUTION GLOBAL CAPITAL GLOBAL CAPITAL FLOWS GLOBALIZATION GOOD GOVERNANCE GOVERNANCE INDEX GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNMENT REVENUES HOST COUNTRIES HOST COUNTRY HUMAN DEVELOPMENT INCOME INFLOWS OF CAPITAL INFORMATION TECHNOLOGY INSTITUTIONAL ENVIRONMENT INSTITUTIONAL INVESTORS INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL LAW INTERNATIONAL TRADE INVENTORIES INVESTING INVESTMENT CLIMATE INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS INVESTOR INTEREST INVESTOR PROTECTION JOB CREATION LAND ACQUISITION LAND CLEARING LAND MARKETS LAND OWNERS LAND OWNERSHIP LAND POLICIES LAND POLICY LAND QUALITY LAND REFORM LAND RIGHTS LAND TENURE LAND TENURE SECURITY LAND TENURE SYSTEMS LAND TRANSFERS LAND USE LAND USERS LAND VALUES LEGISLATION LIABILITY LIBERALIZATION LIQUIDATION LONG-TERM INVESTMENT MARGINAL LANDS MARKET DISTORTIONS MARKET PRICES MONETARY FUND NATIONAL INVESTMENTS NATURAL RESOURCES OIL OPPORTUNITY COST OUTPUT POLICY RESPONSE POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO PORTFOLIO INVESTMENT POVERTY ALLEVIATION PRIVATE EQUITY PRODUCTIVITY PROPERTY RIGHTS PROTECTION OF INVESTORS PUBLIC INVESTMENT PUBLIC LAND PUBLIC SPENDING PUSH FACTORS RATES OF RETURN RED TAPE REGULATORY ENVIRONMENT RENEGOTIATION RETURNS RULE OF LAW SHAREHOLDERS SOCIAL DEVELOPMENT SOILS SOVEREIGN RISK SUSTAINABLE INVESTMENT TAX TAX BREAKS TRADE FLOWS TRANSACTION TRANSACTION COST TRANSPARENCY TRANSPORT TRUST FUND VOLATILITY WAGES WORLD ECONOMY ZONING |
| spellingShingle |
ACCESS TO CAPITAL ACCOUNTABILITY ACCOUNTING AGRICULTURAL COMMODITY AGRICULTURAL ECONOMICS AGRICULTURAL LAND AGRICULTURAL LAND USE AGRICULTURAL LANDS AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURE ARABLE LAND ARBITRATION AUCTIONS BANK POLICY BANKS BIODIVERSITY BUSINESS CLIMATE BUSINESS CYCLE CAPITAL FLOW CAPITAL FLOWS CAPITAL MARKETS CENTER FOR INTERNATIONAL FORESTRY RESEARCH COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES CONTRACT ENFORCEMENT CULTIVABLE LAND CULTIVATED AREA CULTIVATED LAND CULTIVATION DEBT DEFAULT RISK DEFORESTATION DEMOCRACY DEVELOPING COUNTRIES DIRECT FOREIGN INVESTMENT DROUGHTS ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE EMERGING ECONOMIES EMPLOYMENT ENVIRONMENTAL BENEFITS ENVIRONMENTAL DAMAGE ENVIRONMENTAL PROTECTION ENVIRONMENTAL RISKS EQUATOR PRINCIPLES EQUITY FUNDS EQUITY MARKETS EXPORT COMPETITIVENESS EXPORTER EXPORTERS EXPROPRIATION EXTERNALITIES FACE VALUE FAIR PRICE FARM SIZE FARMLAND FINANCE CORPORATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SUPPORT FOOD PRICE FOOD PRODUCTION FOREIGN DIRECT INVESTMENT FOREIGN FIRM FOREIGN INVESTMENT FOREIGN INVESTMENT FLOWS FOREIGN INVESTMENTS FOREST FOREST LAND FOREST PLANTATIONS FOREST RESOURCES FOREST SECTOR FORESTRY FORESTRY INDUSTRY FORESTRY LAW FORESTS GEOGRAPHIC DISTRIBUTION GLOBAL CAPITAL GLOBAL CAPITAL FLOWS GLOBALIZATION GOOD GOVERNANCE GOVERNANCE INDEX GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNMENT REVENUES HOST COUNTRIES HOST COUNTRY HUMAN DEVELOPMENT INCOME INFLOWS OF CAPITAL INFORMATION TECHNOLOGY INSTITUTIONAL ENVIRONMENT INSTITUTIONAL INVESTORS INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL LAW INTERNATIONAL TRADE INVENTORIES INVESTING INVESTMENT CLIMATE INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS INVESTOR INTEREST INVESTOR PROTECTION JOB CREATION LAND ACQUISITION LAND CLEARING LAND MARKETS LAND OWNERS LAND OWNERSHIP LAND POLICIES LAND POLICY LAND QUALITY LAND REFORM LAND RIGHTS LAND TENURE LAND TENURE SECURITY LAND TENURE SYSTEMS LAND TRANSFERS LAND USE LAND USERS LAND VALUES LEGISLATION LIABILITY LIBERALIZATION LIQUIDATION LONG-TERM INVESTMENT MARGINAL LANDS MARKET DISTORTIONS MARKET PRICES MONETARY FUND NATIONAL INVESTMENTS NATURAL RESOURCES OIL OPPORTUNITY COST OUTPUT POLICY RESPONSE POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO PORTFOLIO INVESTMENT POVERTY ALLEVIATION PRIVATE EQUITY PRODUCTIVITY PROPERTY RIGHTS PROTECTION OF INVESTORS PUBLIC INVESTMENT PUBLIC LAND PUBLIC SPENDING PUSH FACTORS RATES OF RETURN RED TAPE REGULATORY ENVIRONMENT RENEGOTIATION RETURNS RULE OF LAW SHAREHOLDERS SOCIAL DEVELOPMENT SOILS SOVEREIGN RISK SUSTAINABLE INVESTMENT TAX TAX BREAKS TRADE FLOWS TRANSACTION TRANSACTION COST TRANSPARENCY TRANSPORT TRUST FUND VOLATILITY WAGES WORLD ECONOMY ZONING Arezki, Rabah Deininger, Klaus Selod, Harris What Drives the Global “Land Rush”? |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5864 |
| description |
The 2007-2008 upsurge in agricultural
commodity prices gave rise to widespread concern about
investors causing a "global land rush". Large land
deals can provide opportunities for better access to
capital, transfer of technology, and advances in
productivity and employment generation. But they carry risks
of dispossession and loss of livelihoods, corruption,
deterioration in local food security, environmental damage,
and long-term social polarization that led some countries to
recently pass legislation restricting foreign land
acquisition. To stimulate evidence-based debate, this paper
explores determinants of foreign land acquisition for
large-scale agriculture. It quantifies demand for land
deals, showing it focused on Africa where land expansion is
about 20 times the level it was in the past. The analysis
uses data on bilateral investment relationships, together
with newly constructed indicators of agro-ecological
suitability in non-protected and forested areas with low
population density as well as land rights security. It
estimates gravity models that can help identify determinants
of foreign land acquisition dedicated to large-scale
agriculture. The 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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Arezki, Rabah Deininger, Klaus Selod, Harris |
| author_facet |
Arezki, Rabah Deininger, Klaus Selod, Harris |
| author_sort |
Arezki, Rabah |
| title |
What Drives the Global “Land Rush”? |
| title_short |
What Drives the Global “Land Rush”? |
| title_full |
What Drives the Global “Land Rush”? |
| title_fullStr |
What Drives the Global “Land Rush”? |
| title_full_unstemmed |
What Drives the Global “Land Rush”? |
| title_sort |
what drives the global “land rush”? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111031110520 http://hdl.handle.net/10986/3630 |
| _version_ |
1764387518158995456 |
| spelling |
okr-10986-36302021-04-23T14:02:11Z What Drives the Global “Land Rush”? Arezki, Rabah Deininger, Klaus Selod, Harris ACCESS TO CAPITAL ACCOUNTABILITY ACCOUNTING AGRICULTURAL COMMODITY AGRICULTURAL ECONOMICS AGRICULTURAL LAND AGRICULTURAL LAND USE AGRICULTURAL LANDS AGRICULTURAL PRODUCTION AGRICULTURAL SECTOR AGRICULTURE ARABLE LAND ARBITRATION AUCTIONS BANK POLICY BANKS BIODIVERSITY BUSINESS CLIMATE BUSINESS CYCLE CAPITAL FLOW CAPITAL FLOWS CAPITAL MARKETS CENTER FOR INTERNATIONAL FORESTRY RESEARCH COMMODITIES COMMODITY COMMODITY PRICE COMMODITY PRICES CONTRACT ENFORCEMENT CULTIVABLE LAND CULTIVATED AREA CULTIVATED LAND CULTIVATION DEBT DEFAULT RISK DEFORESTATION DEMOCRACY DEVELOPING COUNTRIES DIRECT FOREIGN INVESTMENT DROUGHTS ECONOMIC DEVELOPMENT ECONOMIC PERFORMANCE EMERGING ECONOMIES EMPLOYMENT ENVIRONMENTAL BENEFITS ENVIRONMENTAL DAMAGE ENVIRONMENTAL PROTECTION ENVIRONMENTAL RISKS EQUATOR PRINCIPLES EQUITY FUNDS EQUITY MARKETS EXPORT COMPETITIVENESS EXPORTER EXPORTERS EXPROPRIATION EXTERNALITIES FACE VALUE FAIR PRICE FARM SIZE FARMLAND FINANCE CORPORATION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SUPPORT FOOD PRICE FOOD PRODUCTION FOREIGN DIRECT INVESTMENT FOREIGN FIRM FOREIGN INVESTMENT FOREIGN INVESTMENT FLOWS FOREIGN INVESTMENTS FOREST FOREST LAND FOREST PLANTATIONS FOREST RESOURCES FOREST SECTOR FORESTRY FORESTRY INDUSTRY FORESTRY LAW FORESTS GEOGRAPHIC DISTRIBUTION GLOBAL CAPITAL GLOBAL CAPITAL FLOWS GLOBALIZATION GOOD GOVERNANCE GOVERNANCE INDEX GOVERNANCE INDICATOR GOVERNANCE INDICATORS GOVERNMENT REVENUES HOST COUNTRIES HOST COUNTRY HUMAN DEVELOPMENT INCOME INFLOWS OF CAPITAL INFORMATION TECHNOLOGY INSTITUTIONAL ENVIRONMENT INSTITUTIONAL INVESTORS INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL LAW INTERNATIONAL TRADE INVENTORIES INVESTING INVESTMENT CLIMATE INVESTMENT DECISIONS INVESTMENT OPPORTUNITIES INVESTMENT PROJECTS INVESTOR INTEREST INVESTOR PROTECTION JOB CREATION LAND ACQUISITION LAND CLEARING LAND MARKETS LAND OWNERS LAND OWNERSHIP LAND POLICIES LAND POLICY LAND QUALITY LAND REFORM LAND RIGHTS LAND TENURE LAND TENURE SECURITY LAND TENURE SYSTEMS LAND TRANSFERS LAND USE LAND USERS LAND VALUES LEGISLATION LIABILITY LIBERALIZATION LIQUIDATION LONG-TERM INVESTMENT MARGINAL LANDS MARKET DISTORTIONS MARKET PRICES MONETARY FUND NATIONAL INVESTMENTS NATURAL RESOURCES OIL OPPORTUNITY COST OUTPUT POLICY RESPONSE POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO PORTFOLIO INVESTMENT POVERTY ALLEVIATION PRIVATE EQUITY PRODUCTIVITY PROPERTY RIGHTS PROTECTION OF INVESTORS PUBLIC INVESTMENT PUBLIC LAND PUBLIC SPENDING PUSH FACTORS RATES OF RETURN RED TAPE REGULATORY ENVIRONMENT RENEGOTIATION RETURNS RULE OF LAW SHAREHOLDERS SOCIAL DEVELOPMENT SOILS SOVEREIGN RISK SUSTAINABLE INVESTMENT TAX TAX BREAKS TRADE FLOWS TRANSACTION TRANSACTION COST TRANSPARENCY TRANSPORT TRUST FUND VOLATILITY WAGES WORLD ECONOMY ZONING The 2007-2008 upsurge in agricultural commodity prices gave rise to widespread concern about investors causing a "global land rush". Large land deals can provide opportunities for better access to capital, transfer of technology, and advances in productivity and employment generation. But they carry risks of dispossession and loss of livelihoods, corruption, deterioration in local food security, environmental damage, and long-term social polarization that led some countries to recently pass legislation restricting foreign land acquisition. To stimulate evidence-based debate, this paper explores determinants of foreign land acquisition for large-scale agriculture. It quantifies demand for land deals, showing it focused on Africa where land expansion is about 20 times the level it was in the past. The analysis uses data on bilateral investment relationships, together with newly constructed indicators of agro-ecological suitability in non-protected and forested areas with low population density as well as land rights security. It estimates gravity models that can help identify determinants of foreign land acquisition dedicated to large-scale agriculture. The 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. 2012-03-19T18:05:52Z 2012-03-19T18:05:52Z 2011-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111031110520 http://hdl.handle.net/10986/3630 English Policy Research working paper ; no. WPS 5864 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |