Why foreign agricultural investment fails? Five lessons from Ethiopia
<p dir="ltr">In the past two decades, foreign direct investment (FDI) in emerging economies has witnessed substantial growth in the agricultural sector. Globally, more than a quarter of these investments have failed. Beyond case studies, the factors that contribute to these failures...
محفوظ في:
| المؤلف الرئيسي: | |
|---|---|
| مؤلفون آخرون: | , , |
| منشور في: |
2023
|
| الموضوعات: | |
| الوسوم: |
إضافة وسم
لا توجد وسوم, كن أول من يضع وسما على هذه التسجيلة!
|
| _version_ | 1864513562340229120 |
|---|---|
| author | Logan Cochrane (7822049) |
| author2 | Eric P. H. Li (16946613) Melisew Dejene (16946616) M. Mustahid Husain (16946619) |
| author2_role | author author author |
| author_facet | Logan Cochrane (7822049) Eric P. H. Li (16946613) Melisew Dejene (16946616) M. Mustahid Husain (16946619) |
| author_role | author |
| dc.creator.none.fl_str_mv | Logan Cochrane (7822049) Eric P. H. Li (16946613) Melisew Dejene (16946616) M. Mustahid Husain (16946619) |
| dc.date.none.fl_str_mv | 2023-08-17T00:00:00Z |
| dc.identifier.none.fl_str_mv | 10.1002/jid.3827 |
| dc.relation.none.fl_str_mv | https://figshare.com/articles/journal_contribution/Why_foreign_agricultural_investment_fails_Five_lessons_from_Ethiopia/24099594 |
| dc.rights.none.fl_str_mv | CC BY 4.0 info:eu-repo/semantics/openAccess |
| dc.subject.none.fl_str_mv | Agricultural, veterinary and food sciences Agriculture, land and farm management Human society Development studies Political science Africa agriculture emerging economies Ethiopia foreign direct investment large-scale land acquisitions CPP |
| dc.title.none.fl_str_mv | Why foreign agricultural investment fails? Five lessons from Ethiopia |
| dc.type.none.fl_str_mv | Text Journal contribution info:eu-repo/semantics/publishedVersion text contribution to journal |
| description | <p dir="ltr">In the past two decades, foreign direct investment (FDI) in emerging economies has witnessed substantial growth in the agricultural sector. Globally, more than a quarter of these investments have failed. Beyond case studies, the factors that contribute to these failures have been subject to limited research. To address this research gap, this article draws on a unique data set of 106 investments in Ethiopia, from which failures were identified and detailed case studies analysed to identify the causes of failure. Drawing on the literature on institutional voids, our analysis shows that the high rates of failure in the agricultural sector are often caused by insufficient planning at the proposal stage, assumptions about the availability of expertise, socio‐political and environmental risks, insufficient financing and/or a changing investment landscape and underestimation and/or misunderstanding regarding the limits of extractive approaches. These lessons suggest that while FDI in the agricultural sector has potential, the working approaches require significant transformation. We offer a set of strategic recommendations to mitigate the risk of investment failure in agricultural investment.</p><h2>Other Information</h2><p dir="ltr">Published in: Journal of International Development<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1002/jid.3827" target="_blank">https://dx.doi.org/10.1002/jid.3827</a></p> |
| eu_rights_str_mv | openAccess |
| id | Manara2_c9393c6e2dbb66162b5e32755cc86510 |
| identifier_str_mv | 10.1002/jid.3827 |
| network_acronym_str | Manara2 |
| network_name_str | Manara2 |
| oai_identifier_str | oai:figshare.com:article/24099594 |
| publishDate | 2023 |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| rights_invalid_str_mv | CC BY 4.0 |
| spelling | Why foreign agricultural investment fails? Five lessons from EthiopiaLogan Cochrane (7822049)Eric P. H. Li (16946613)Melisew Dejene (16946616)M. Mustahid Husain (16946619)Agricultural, veterinary and food sciencesAgriculture, land and farm managementHuman societyDevelopment studiesPolitical scienceAfricaagricultureemerging economiesEthiopiaforeign direct investmentlarge-scale land acquisitionsCPP<p dir="ltr">In the past two decades, foreign direct investment (FDI) in emerging economies has witnessed substantial growth in the agricultural sector. Globally, more than a quarter of these investments have failed. Beyond case studies, the factors that contribute to these failures have been subject to limited research. To address this research gap, this article draws on a unique data set of 106 investments in Ethiopia, from which failures were identified and detailed case studies analysed to identify the causes of failure. Drawing on the literature on institutional voids, our analysis shows that the high rates of failure in the agricultural sector are often caused by insufficient planning at the proposal stage, assumptions about the availability of expertise, socio‐political and environmental risks, insufficient financing and/or a changing investment landscape and underestimation and/or misunderstanding regarding the limits of extractive approaches. These lessons suggest that while FDI in the agricultural sector has potential, the working approaches require significant transformation. We offer a set of strategic recommendations to mitigate the risk of investment failure in agricultural investment.</p><h2>Other Information</h2><p dir="ltr">Published in: Journal of International Development<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1002/jid.3827" target="_blank">https://dx.doi.org/10.1002/jid.3827</a></p>2023-08-17T00:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1002/jid.3827https://figshare.com/articles/journal_contribution/Why_foreign_agricultural_investment_fails_Five_lessons_from_Ethiopia/24099594CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/240995942023-08-17T00:00:00Z |
| spellingShingle | Why foreign agricultural investment fails? Five lessons from Ethiopia Logan Cochrane (7822049) Agricultural, veterinary and food sciences Agriculture, land and farm management Human society Development studies Political science Africa agriculture emerging economies Ethiopia foreign direct investment large-scale land acquisitions CPP |
| status_str | publishedVersion |
| title | Why foreign agricultural investment fails? Five lessons from Ethiopia |
| title_full | Why foreign agricultural investment fails? Five lessons from Ethiopia |
| title_fullStr | Why foreign agricultural investment fails? Five lessons from Ethiopia |
| title_full_unstemmed | Why foreign agricultural investment fails? Five lessons from Ethiopia |
| title_short | Why foreign agricultural investment fails? Five lessons from Ethiopia |
| title_sort | Why foreign agricultural investment fails? Five lessons from Ethiopia |
| topic | Agricultural, veterinary and food sciences Agriculture, land and farm management Human society Development studies Political science Africa agriculture emerging economies Ethiopia foreign direct investment large-scale land acquisitions CPP |