Do land transfers to international investors contribute to employment generation and local food security? Evidence from Oromia Region, Ethiopia

Publication Type

Journal contribution (peer reviewed)

Authors

Alamirew, B., Grethe, H., Siddig, K. H. A., Wossen, T.

Year of publication

2015

Published in

International Journal of Social Economics

Band/Volume

42/12

DOI

10.1108/IJSE-02-2014-0037

Page (from - to)

1121-1138

Keywords

Nachhaltigkeit

Abstract

Purpose–Like many countries in the developing world, Ethiopia has leased out a huge amount of land to foreign investors. However, empirical evidence on the contribution of international investments to employment generation and food security is limited. The purpose of this paper is to examine the contribution of large-scale farms to local-level food security in Bako Tibe District,Oromia Region.

Design/methodology/approach–Primary data were collected from 200 randomly selectedhouseholds from two purposefully selected villages in the district. Secondary data were collected from government offices and the literature. Propensity score matching was used to match households based on observable characteristics. Using the World Food Programme (WFP) approach, the food consumption score (FCS) of households was calculated. Finally, the Average Treatment effect for the Treated was determined.

Findings–Findings indicate that foreign land deals increase the odds of households falling intofood insecurity and that the employment opportunities are both temporal and marginal. Furthermore,these land deals result in a decline of households’ FCS and thus have a negative effect on households’ food security.

Research limitations/implications–The result is based on a case study which is not generalizableto the whole of Ethiopia.

Practical implications–The result implies that future endeavours should resort to substantialchanges in the principles of investment as well as the design and enforcement of contracts on landtransfers so that international investors can commit to objectives beyond private profit.

Originality/value–It examines the effect of large-scale land transfers commonly termed as landgrabbing on local food security. The paper makes an important contribution to the current policydebates regarding land grabbing in Ethiopia as research about the contribution of land deals to thefood security is limited.