Relation between Large-Scale Land Acquisitions and Rural Households

Giulia Barbanente investigates the impact of large-scale foreign land acquisitions (LSLAs) on rural households in Ethiopia and Tanzania. Given the scale of LSLAs happening in developing countries, there is urgent need to objectively assess whether risks for smallholders are balanced by positive economic outcomes. The author considers four key pathways of influence of LSLAs on rural households: access to land, returns to land, returns to labor and price of agricultural goods. The four pathways are tested on the background of Ethiopia's and Tanzania's land tenure systems, which are strikingly different. The evidence shows several elements of similarity in the reported effect of LSLAs on the defined indicators of households' welfare in the two countries.