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The impact of foreign large-scale land acquisitions on smallholder productivity: Evidence from Zambia

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  • Sipangule, Kacana
  • Lay, Jann

Abstract

In light of the surge of foreign large-scale land acquisitions (LSLA) in developing countries, concerns have been raised that large-scale agricultural projects could negatively affect smallholder livelihoods. There is, however, very little evidence beyond case studies that support these claims. Drawing on nationally representative household datasets from 2000 and 2010, as well as an inventory of foreign LSLA from Zambia, this study investigates the impacts of foreign LSLA on the productivity, fertilizer use, and wage-employment opportunities of smallholders. Using a difference-in-difference approach, we find that smallholders located in districts with foreign LSLA are not worse off than smallholders in districts without foreign LSLA. Instead, we find consistent evidence of a convergence in the productivity levels of smallholders in districts with and without foreign LSLA. Our results allow for the careful conclusion that LSLA, despite being of considerable magnitude in Zambia, have not had any disruptive effects on the smallholder economy at the district level.

Suggested Citation

  • Sipangule, Kacana & Lay, Jann, 2015. "The impact of foreign large-scale land acquisitions on smallholder productivity: Evidence from Zambia," AGRODEP working papers 11, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:agrowp:11
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    Cited by:

    1. Deininger, Klaus & Xia, Fang, 2016. "Quantifying Spillover Effects from Large Land-based Investment: The Case of Mozambique," World Development, Elsevier, vol. 87(C), pages 227-241.
    2. Paul C. Samboko & Mulako Kabisa & Giles Henley, 2019. "Constraints to biofuel feedstock production expansion in Zambia," Development Southern Africa, Taylor & Francis Journals, vol. 36(2), pages 198-212, March.
    3. Giles Henley, 2017. "Review of social issues for large-scale land investment in Zambia," WIDER Working Paper Series 042, World Institute for Development Economic Research (UNU-WIDER).
    4. Paul C. Samboko & Mulako Kabisa & Giles Henley, 2019. "Constraints to biofuel feedstock production expansion in Zambia," Development Southern Africa, Taylor & Francis Journals, vol. 36(2), pages 198-212, March.
    5. Ahlerup, Pelle & Tengstam, Sven, 2015. "Do the land-poor gain from agricultural investments? Empirical evidence from Zambia using panel data," Working Papers in Economics 624, University of Gothenburg, Department of Economics.
    6. Deininger, Klaus & Xia, Fang, 2018. "Assessing the long-term performance of large-scale land transfers: Challenges and opportunities in Malawi’s estate sector," World Development, Elsevier, vol. 104(C), pages 281-296.
    7. Khadjavi, Menusch & Sipangule, Kacana & Thiele, Rainer, 2016. "Social capital and large-scale agricultural investments: An experimental investigation in Zambia," Kiel Working Papers 2056, Kiel Institute for the World Economy (IfW Kiel).
    8. Chamberlin, Jordan & Jayne, T. S., 2017. "Farmland Concentration And Rural Income Growth: Evidence From Tanzania," Feed the Future Innovation Lab for Food Security Policy Research Papers 265608, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    9. Atsushi Iimi, 2020. "Performance-Based Road Contracts in Zambia," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(1), pages 107-129, August.
    10. Kacana Sipangule, 2017. "Agribusinesses, smallholder tenure security, and plot-level investments: Evidence from rural Tanzania," WIDER Working Paper Series 106, World Institute for Development Economic Research (UNU-WIDER).
    11. Bezabih, Mintewab & Teklewold, Hailemariam & Zewdie, Samuel A., 2024. "The influence of large scale land acquisition on smallholder farming productivity - the case of Zambia," World Development Perspectives, Elsevier, vol. 33(C).
    12. Giles Henley, 2017. "Review of social issues for large-scale land investment in Zambia," WIDER Working Paper Series wp-2017-42, World Institute for Development Economic Research (UNU-WIDER).

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