Trans-Border Land Acquisitions: A New Guise of Outsourcing and Host Country Effects

Gouranga Das
2012 Social Science Research Network  
The rush for land acquisition-primarily driven by food shortages, food price volatility, and the run for agrofuel-has drawn considerable attention, as documented by reports published in late 2009, 2010, and 2011. Terminological differences aside, it is-quite distinct from material or service outsourcing-a kind of off-shoring farm production across borders to relatively land-abundant nations and exporting it back to mitigate the adverse effects of food insecurity. While the academic literature
more » ... ademic literature is not capacious, this paper, the first of its kind, attempts to study its (potential) effects in the context of a small open economy subject to exogenous shocks. The presence of a sector subject to land acquisition is central to the analysis. In particular, the paper notes that: (i) an increase in world prices of agro-business sector causes skewed effects (shrinkage) in manufacturing or innovative sectors, and subsistence sector (via forward and backward linkages), causing price change vulnerability; (ii) with attractive premiums offered by host country, land acquisition will undermine the avowed objective of mitigating food .../.
doi:10.2139/ssrn.3169111 fatcat:fwn72wqa5nbi3fr67x6jwqfxo4