Quantifying Spillover Effects from Large Land-based Investment : The Case of Mozambique

Almost a decade after a spike in land demand following the 2007–08 commodity boom, evidence on impacts of this phenomenon remains limited and mostly case study based. We show that information on location and start data of large farms, combined with existing smallholder farm surveys, allows to comple...

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Main Authors:	Deininger, Klaus, Xia, Fang
Format:	Journal Article
Language:	en_US
Published:	Elsevier 2016
Subjects:	large farms spillover effects crop yields farm investment commodities
Online Access:	http://hdl.handle.net/10986/24709

id	okr-10986-24709
recordtype	oai_dc
spelling	okr-10986-247092021-05-25T09:01:30Z Quantifying Spillover Effects from Large Land-based Investment : The Case of Mozambique Deininger, Klaus Xia, Fang large farms spillover effects crop yields farm investment commodities Almost a decade after a spike in land demand following the 2007–08 commodity boom, evidence on impacts of this phenomenon remains limited and mostly case study based. We show that information on location and start data of large farms, combined with existing smallholder farm surveys, allows to complement this with a difference-in-difference approach to systematically assess spillovers from large farm establishment. Illustrative application to Mozambique suggests positive short-term effects from newly established large farms on adoption of agricultural practices and input use by small farms less than 50 km from newly established large operations. Robustness checks for crop farms only also suggest job creation in the proximity of newly established crop, but not livestock farms. Yet, large farm establishment decreased perceived well-being within a 25-km band and, in the time horizon considered here, did not lead to better access to output markets, cultivation of larger areas or, once other factors are controlled for, higher yields. This allows us to reject the notion of negative spillovers from large farm establishment but casts doubt on the wisdom of large unconditional subsidies to attract investors. In addition to drawing policy conclusions for Mozambique, we highlight the methodology’s wider applicability and scope for expansion. 2016-07-18T20:41:47Z 2016-07-18T20:41:47Z 2016-07-04 Journal Article World Development http://hdl.handle.net/10986/24709 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research Africa Sub-Saharan Africa Mozambique
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	large farms spillover effects crop yields farm investment commodities
spellingShingle	large farms spillover effects crop yields farm investment commodities Deininger, Klaus Xia, Fang Quantifying Spillover Effects from Large Land-based Investment : The Case of Mozambique
geographic_facet	Africa Sub-Saharan Africa Mozambique
description	Almost a decade after a spike in land demand following the 2007–08 commodity boom, evidence on impacts of this phenomenon remains limited and mostly case study based. We show that information on location and start data of large farms, combined with existing smallholder farm surveys, allows to complement this with a difference-in-difference approach to systematically assess spillovers from large farm establishment. Illustrative application to Mozambique suggests positive short-term effects from newly established large farms on adoption of agricultural practices and input use by small farms less than 50 km from newly established large operations. Robustness checks for crop farms only also suggest job creation in the proximity of newly established crop, but not livestock farms. Yet, large farm establishment decreased perceived well-being within a 25-km band and, in the time horizon considered here, did not lead to better access to output markets, cultivation of larger areas or, once other factors are controlled for, higher yields. This allows us to reject the notion of negative spillovers from large farm establishment but casts doubt on the wisdom of large unconditional subsidies to attract investors. In addition to drawing policy conclusions for Mozambique, we highlight the methodology’s wider applicability and scope for expansion.
format	Journal Article
author	Deininger, Klaus Xia, Fang
author_facet	Deininger, Klaus Xia, Fang
author_sort	Deininger, Klaus
title	Quantifying Spillover Effects from Large Land-based Investment : The Case of Mozambique
title_short	Quantifying Spillover Effects from Large Land-based Investment : The Case of Mozambique
title_full	Quantifying Spillover Effects from Large Land-based Investment : The Case of Mozambique
title_fullStr	Quantifying Spillover Effects from Large Land-based Investment : The Case of Mozambique
title_full_unstemmed	Quantifying Spillover Effects from Large Land-based Investment : The Case of Mozambique
title_sort	quantifying spillover effects from large land-based investment : the case of mozambique
publisher	Elsevier
publishDate	2016
url	http://hdl.handle.net/10986/24709
_version_	1764457625272975360

Quantifying Spillover Effects from Large Land-based Investment : The Case of Mozambique

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