The impact of FDI in land in agriculture in developing countries on host country food security

Elsevier,  Journal of World Business - Volume 53, Issue 1, January 2018, Pages 75-84
Authors: 
Grazia D. Santangelo

Abstract

We investigate the influence of FDI in land in agriculture in developing countries, a phenomenon also known as land grabbing, on host country food security, and suggest a differential impact depending on the investor’s country of origin. FDI in land by developed-country investors positively influence food security by expanding land used for crop production because of home institutional pressure for human rights respect and responsible farmland conduct, in addition to positive spillovers. Instead, FDI in land by developing-country investors negatively influence food security by decreasing cropland due to home institutional pressure to align to national interests and government policy objectives, in addition to negative spillovers.

Keyword

Food security; FDI in land; land grabbing; Agriculture; Country of origin; Home institutional pressure; Spillovers; Host developing countries