Impact of Large Scale Agricultural Investments towards Local Development in Gambella, Ethiopia
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Date
2019
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Addis Ababa University
Abstract
Large scale agricultural investments (LASI) have grabbed the local as well as international investors’
attention following the 2007/08 world food crisis. LSAI’s are believed to bring local development
opportunities for the rural community in developing countries. Governments of developing countries
including Ethiopia have been trying to convince local and international investors to engage in the sector
hoping to alleviate their local development issues thereby acquiring foreign currency. The justification
given by the GoE to the leasing of large tracts of arable lands both to domestic and foreign investors is that
it is the key for triggering modernization in the agricultural sector and part of country development strategy
to ensure food security. Therefore the study is conducted to investigate the impact of large scale agricultural
investments towards local development in Gambella, Ethiopia. Primary data collected from household
survey and secondary data from government offices were used. The analysis was done descriptively as well
as econometrically using STATA 13 and SPSS 23 software. The econometric analysis of the study is
conducted using PSM (Propensity Score Matching). The findings of the study, showed that large scale
agricultural investments have a positive and significant impact towards local development expressed in
terms of employment, technology transfer and infrastructure development. This implies, if properly
administered, LSAI’s could bring local development to the local community.
Key words: - Large Scale Agricultural Investments; Local Development; Employment;
Technology Transfer; Infrastructure Development
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Keywords
Large Scale Agricultural Investments; Local Development; Employment; Technology Transfer; Infrastructure Development