Work

Determinants of foreign land acquisitions in low- and middle-income countries

Year: 2017

Type: article

Abstract: This article analyses the determinants of growing demand for agricultural land in developing countries. We propose some determinants that are specific to foreign acquisitions of agricultural land as a subset of agricultural foreign direct investment (FDI) and empirically examine the corresponding locational choice. Using a gravity model and a data set on land acquisitions worldwide, we find that the determinants partly overlap with those for other forms of FDI but are specific in certain regards. Rich investors target (poorer) economies with abundant land and water resources, and the effects of the quality of institutions are ambiguous.

Source: Journal of Economic Geography

DOI: 10.1093/jeg/lbx011

Authors: Jann Lay, Kerstin Nolte

Institutions: German Institute for Global and Area Studies, University of Göttingen

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Zero hunger

Open Access status: hybrid

Estimated APC paid: $4,638