Impacts of Large-Scale Land Investments on Income, Prices, and Employment: Empirical Analyses in Ethiopia

16 Pages Posted: 9 Apr 2015

See all articles by Philipp Baumgartner

Philipp Baumgartner

University of Bonn - Center for Development Research (ZEF)

Joachim von Braun

University of Bonn - Department of Economic and Technological Change

Degnet Abebaw

Ethiopian Economics Association/Ethiopian Economic Policy Research Institute

Marc Mueller

Ethiopian Economics Association/Ethiopian Economic Policy Research Institute - Ethiopian Economic Policy Research Institute (EEA)

Date Written: March 26, 2015

Abstract

We review the trend and types of large-scale land transaction in Ethiopia since 1992 and assess the impacts of one such investment using four scenarios: (i) a baseline scenario; (ii) the forest loss resulting from the land transfer; (iii) the operation of the investment at full scale; and (iv) an alternative scenario of a smaller investment paired with a more inclusive rural development policy. Results showed that forest resources are important for the rural poor, but that losses can be offset by gains from employment generation and business opportunities. The alternative scenario indicated opportunities for better social and environmental sustainability.

Keywords: rural development; agricultural labor markets; land rights; land markets; Ethiopia; Africa

JEL Classification: Q12, Q15, J43, C61

Suggested Citation

Baumgartner, Philipp and von Braun, Joachim and Abebaw, Degnet and Mueller, Marc, Impacts of Large-Scale Land Investments on Income, Prices, and Employment: Empirical Analyses in Ethiopia (March 26, 2015). World Development, Vol. 72, 2015. Available at SSRN: https://ssrn.com/abstract=2591592

Philipp Baumgartner (Contact Author)

University of Bonn - Center for Development Research (ZEF) ( email )

Walter-Flex-Str. 3
Bonn, NRW 53113
Germany
0228731876 (Phone)

HOME PAGE: http://www.zef.de

Joachim Von Braun

University of Bonn - Department of Economic and Technological Change ( email )

Walter-Flex-Str. 3
Bonn, 53113
Germany

Degnet Abebaw

Ethiopian Economics Association/Ethiopian Economic Policy Research Institute ( email )

Addis Ababa, 34282
Ethiopia

Marc Mueller

Ethiopian Economics Association/Ethiopian Economic Policy Research Institute - Ethiopian Economic Policy Research Institute (EEA) ( email )

Yeka Sub - City, Kebele 19
Adjacent to St. Michael Church
Addis Ababa
Ethiopia

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