Effects of foreign direct investment in African agriculture
Abstract
Purpose
The purpose of this paper is to review the key issues surrounding foreign direct investment (FDI) in agriculture, and examine the potential impacts of FDI in African agriculture.
Design/methodology/approach
The dynamic Global Trade Analysis Project model (GDyn) is used to analyse the potential impacts of improvements in land productivity and FDI in Africa.
Findings
The results illustrate that combined efforts to improve land productivity and growth in FDI could potentially increase Africa’s share in global agricultural output and exports, particularly with respect to oil seeds, sugar, and cotton.
Originality/value
The authors employ a global economy-wide modelling framework to simulate the effects of growth in FDI in African agriculture.
Keywords
Acknowledgements
JEL Classification — F1, F2, Q1, C68
The authors acknowledge support from the University of Adelaide, based on a Rural Industry Research and Development Corporation funded project. The authors wish to thank two anonymous reviewers for their valuable comments and suggestions. Kym Anderson and Ernesto Valenzuela provided useful comments on earlier drafts of this paper.
Citation
Gunasekera, D., Cai, Y. and Newth, D. (2015), "Effects of foreign direct investment in African agriculture", China Agricultural Economic Review, Vol. 7 No. 2, pp. 167-184. https://doi.org/10.1108/CAER-08-2014-0080
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited