Foreign Direct Investment in African Land and the Impact on Host Country Food Security – Are there differences in the relation between FDI and host country food security depending on investors country of origin?

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2022-07-11

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en

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This research studies the relation between FDI in land and host country food security in Africa. The research suggests a country specific relationship between FDI in land and host country food security. Henceforth this study examines land investments originating from five major investor home countries in African land; including for land deals from China, India, The Gulf states, EU member states and the United States. This study applies a multivariate regression analysis using Land Matrix data on large scale land deals in 22 African countries over the period 2000-2018. The findings show how the relation between FDI and host county food security differs for the different investor home countries. Gulf country investments in African land are negatively related to host country food security, for Chinese investments a positive effect was found. Additionally, the research finds a significant and positive effect for host country food exports and food production. This thesis adds to the food security literature by establishing the investor country specific relation between FDI in land and African food security. Furthermore, it provides the reader with an overview of home country specific drivers of Foreign Direct Investments in African land.

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Faculteit der Managementwetenschappen