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Rural welfare implications of large-scale land acquisitions in Africa: A theoretical framework

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  • Kleemann, Linda
  • Thiele, Rainer
Abstract
We study the local welfare effects of large-scale agricultural land acquisitions in Sub-Saharan Africa using a theoretical model that captures the major channels through which land deals might affect rural African populations. We distinguish two scenarios. In the first scenario, the investor plants capital-intensive staple food crops. Displaced farmers compete for a very limited number of jobs on the investment farm and spillovers to the remaining local farmers are rare. In the second scenario, where the investor plants cash crops, potential spillovers through contract farming are larger and production is more labor-intensive and hence provides better employment prospects.

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  • Kleemann, Linda & Thiele, Rainer, 2015. "Rural welfare implications of large-scale land acquisitions in Africa: A theoretical framework," Economic Modelling, Elsevier, vol. 51(C), pages 269-279.
    • Handle: RePEc:eee:ecmode:v:51:y:2015:i:c:p:269-279
    DOI: 10.1016/j.econmod.2015.08.016
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    1. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," The World Bank Economic Review, World Bank, vol. 29(2), pages 207-233.
    2. Ward Anseeuw & Mathieu Boche & Thomas Breu & Markus Giger & Jann Lay & Peter Messerli & Kerstin Nolte, 2012. "Transnational land deals for agriculture in the global south," Post-Print hal-02875924, HAL.
    3. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
    4. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low‐income countries1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
    5. Rabah Arezki & Klaus Deininger & Harris Selod, 2015. "What Drives the Global "Land Rush"?," World Bank Economic Review, World Bank Group, vol. 29(2), pages 207-233.
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    Cited by:

    1. Wegayehu Fitawek & Sheryl L. Hendriks, 2021. "Evaluating the Impact of Large-Scale Agricultural Investments on Household Food Security Using an Endogenous Switching Regression Model," Land, MDPI, vol. 10(3), pages 1-19, March.
    2. Castet, Antoine, 2024. "The impact of large-scale land acquisitions on child food insecurity in Africa," World Development, Elsevier, vol. 179(C).
    3. De Juan, Alexander & Hoffmann, Lisa & Lay, Jann, 2022. "Large-scale agricultural investments, employment opportunities and communal conflict," OSF Preprints j5vmh, Center for Open Science.
    4. Abdul-Hanan Abdallah & Michael Ayamga & Joseph A. Awuni, 2023. "Impact of land grabbing on food security: evidence from Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6071-6094, July.
    5. Scoppola, M. & Raimondi, V., 2018. "Foreign Land Acquisitions and Environmental Regulations: does the Pollution-Haven Hypothesis hold?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277098, International Association of Agricultural Economists.
    6. Giger, Markus & Mutea, Emily & Kiteme, Boniface & Eckert, Sandra & Anseeuw, Ward & Zaehringer, Julie G., 2020. "Large agricultural investments in Kenya’s Nanyuki Area: Inventory and analysis of business models," Land Use Policy, Elsevier, vol. 99(C).
    7. Khadjavi, Menusch & Sipangule, Kacana & Thiele, Rainer, 2016. "Social capital and large-scale agricultural investments: An experimental investigation in Zambia," Kiel Working Papers 2056, Kiel Institute for the World Economy (IfW Kiel).
    8. Ströh de Martínez, Christiane & Feddersen, Marietta & Speicher, Anna, 2016. "Food security in sub-Saharan Africa: a fresh look on agricultural mechanisation. How adapted financial solutions can make a difference," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 91, number 91, July.
    9. Emerta A. Aragie, 2024. "The Impact of Large-scale Agricultural Investments in Low-income Economies," Journal of Development Policy and Practice, , vol. 9(2), pages 199-218, July.
    10. Nolte, Kerstin & Ostermeier, Martin, 2017. "Labour Market Effects of Large-Scale Agricultural Investment: Conceptual Considerations and Estimated Employment Effects," World Development, Elsevier, vol. 98(C), pages 430-446.
    11. Simona Roxana Patarlageanu & Carmen Valentina Radulescu & Mihai Dinu & Marius Constantin, 2020. "The Impact of Heavy Work Investment on the Economy and the Individual," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(Special 1), pages 1085-1085, November.
    12. Raimondi, Valentina & Scoppola, Margherita, 2022. "The impact of foreign land acquisitions on Africa virtual water exports," Ecological Economics, Elsevier, vol. 193(C).
    13. Rahmat Aris Pratomo & D. Ary A. Samsura & Erwin van der Krabben, 2020. "Transformation of Local People’s Property Rights Induced by New Town Development (Case Studies in Peri-Urban Areas in Indonesia)," Land, MDPI, vol. 9(7), pages 1-24, July.
    14. Anti, Sebastian, 2021. "Land grabs and labor in Cambodia," Journal of Development Economics, Elsevier, vol. 149(C).

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    More about this item

    Keywords

    Large-scale land acquisitions; Local populations; Welfare effects; Displacement; Food prices;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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