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...

Full description

Bibliographic Details
Main Authors: Arezki, Rabah, Deininger, Klaus, Selod, Harris
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
OIL
TAX
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
id 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