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Effects of Large-Scale Agricultural Land Investment on Local Communities Livelihoods: Evidence from Bambasi Woreda, Western Ethiopia

Received: 9 April 2024     Accepted: 24 April 2024     Published: 10 May 2024
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Abstract

Most of the African countries including Ethiopia are often known by problem of large scale agricultural land investment effects on the local community where land is being transferred to investment. Even though several efforts made so far to solve the overall effects of large scale agricultural land investment situation, the challenge is still widespread problem in Ethiopia. Hence the study project's purpose was to find out how large agricultural investments in Bambasi Woreda, Western Ethiopia impact the livelihoods of the surrounding populations and examine the local communities' participation in the large scale agricultural investment. In order to attain these objectives, data were collected from 330 randomly selected households in four purposively selected kebeles of the district for both control groups and treatment groups. The sample size was chosen using a multistage stratified random sampling technique. Both qualitative and quantitative data gathering techniques and instruments were employed in the study. Besides, the instruments utilized to collect the data were observations, focus groups, interviews, household surveys, and document reviews. Data was analyzed using both descriptive statistics and econometric methods. The study shows that out of the total sampled respondents 30 of the treatment group and 13 percent of control group reveal that the project provided opportunity in terms of employment opportunity, technology transfer, utilization of agricultural inputs, changing the working culture of the community and productivity. The chie square value shows there is statistical significance among treated and control group on opportunity investment provided for the household and community. A binary logit regression model was used to describe how large-scale agriculture land investment affected the local community's standard of living. The findings indicated that only six variables were found to be significant out of the characteristics that were expected to influence local community employment in large-scale agricultural land investment projects. These includes household's educational accomplishment, size of HH, occupation of HH, Loss of useful land due to investment Project and technology transfer significantly and positively affected the employment opportunity in large scale agricultural investment projects, whereas the distance of a household's home from an investment project has a negative impact. Large-scale agricultural investments have a detrimental influence on household wealth accumulation and income, according to the estimation results of the average treatment effects on the treated. The management and implementation of land transfer for large-scale agricultural investment projects is inadequate, lack of openness, absence of community consultation, natural forest degradation, socio-economic and ecological effects must be carefully considered before transferring the land for large-scale agricultural investment.

Published in American Journal of Environmental and Resource Economics (Volume 9, Issue 2)
DOI 10.11648/j.ajere.20240902.11
Page(s) 20-38
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Effects, Large Scale Agricultural Land Investment, Control Group, Treatment Group and Livelihoods

References
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[2] D. Teklemariam, H. Azadi, J. Nyssen, M. Haile, and F. Witlox, “How sustainable is transnational farmland acquisition in Ethiopia? Lessons learned from the Benishangul-Gumuz Region,” Sustain., vol. 8, no. 3, pp. 1–27, 2016,
[3] S. Kolavalli, R. Birner, and K. Flaherty, “The Comprehensive Africa Agriculture Program as a Collective Institution,” SSRN Electron. J., no. December, 2013,
[4] W. M. Azeb W. Degife, “Socio-economic and Environmental Impacts of Large-Scale Agricultural Investment in Gambella Region, Ethiopia,” J. US-China Public Adm., vol. 14, no. 4, pp. 183–197, 2017,
[5] D. K. Ketema, B. Emanna, and G. Tesfay, “Impact of land acquisition for large-scale agricultural investments on vulnerability of displaced households to climate change shocks in Ethiopia,” Ecosyst. People, vol. 18, no. 1, pp. 643–660, 2022,
[6] A. K. Guyalo, E. A. Alemu, and D. T. Degaga, “Impact of large-scale agricultural investments on the food security status of local community in Gambella region, Ethiopia,” Agric. Food Secur., vol. 11, no. 1, pp. 1–28, 2022,
[7] FAO, “AQUASTAT Country Profile – Ethiopia. Food and Agriculture Organization of the United Nations (FAO). Rome, Italy,” FAO, AQUSAT reports, pp. 11–12, 2016.
[8] MoARD, “Federal Democratic Republic of Ethiopia Ministry of Agriculture and Rural Development,” Minist. Agric. Rural Dev. Ethiop. Agric. Sect. Policy Invest. Framew., vol. 2010, no. June, pp. 2009–2012, 2010.
[9] World Bank, “UNLOCKING AFRICA ’ S AGRICULTURAL Unlocking Africa ’ s Agricultural Potential,” 2013.
[10] T. Moreda, “Large-scale land acquisitions, state authority and indigenous local communities: insights from Ethiopia,” Third World Q., vol. 38, no. 3, pp. 698–716, 2017,
[11] G. Alemu, “Rural Land Policy, Rural Transformation and Recent Trends in Large-Scale Rural Acquisitions in Ethiopia,” p. 28, 2011.
[12] R. Dessalegn, “Land to investors: Large-Scale Land Transfers in Ethiopia,” L. Gov. equitable Sustain. Dev., pp. 0–36, 2011.
[13] M. S. Bekele, “Economic and Agricultural Transformation through Large-scale Farming Impacts of large-scale farming on local economic development,” no. October 2016, pp. 1–288, 2016.
[14] G. A. Alamineh and K. S. Anteneh, “DEVELOPMENTAL PARADOX IN ETHIOPIA: LARGE SCALE AGRICULTURE AND ITS IMPACT,” J. Wind Eng. Ind. Aerodyn., vol. 26, no. 1, pp. 1–4, 2019.
[15] G. D. Isreal, “Using Published Tables Using Formulas To Calculate A Sample Size Using A Census For Small Populations”.
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    Gasisa, S. Z., Yeneneh, M. F., Benti, T. R. (2024). Effects of Large-Scale Agricultural Land Investment on Local Communities Livelihoods: Evidence from Bambasi Woreda, Western Ethiopia. American Journal of Environmental and Resource Economics, 9(2), 20-38. https://doi.org/10.11648/j.ajere.20240902.11

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    ACS Style

    Gasisa, S. Z.; Yeneneh, M. F.; Benti, T. R. Effects of Large-Scale Agricultural Land Investment on Local Communities Livelihoods: Evidence from Bambasi Woreda, Western Ethiopia. Am. J. Environ. Resour. Econ. 2024, 9(2), 20-38. doi: 10.11648/j.ajere.20240902.11

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    AMA Style

    Gasisa SZ, Yeneneh MF, Benti TR. Effects of Large-Scale Agricultural Land Investment on Local Communities Livelihoods: Evidence from Bambasi Woreda, Western Ethiopia. Am J Environ Resour Econ. 2024;9(2):20-38. doi: 10.11648/j.ajere.20240902.11

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  • @article{10.11648/j.ajere.20240902.11,
      author = {Shafe Zelalem Gasisa and Mihret Fentahun Yeneneh and Teha Romanu Benti},
      title = {Effects of Large-Scale Agricultural Land Investment on Local Communities Livelihoods: Evidence from Bambasi Woreda, Western Ethiopia
    },
      journal = {American Journal of Environmental and Resource Economics},
      volume = {9},
      number = {2},
      pages = {20-38},
      doi = {10.11648/j.ajere.20240902.11},
      url = {https://doi.org/10.11648/j.ajere.20240902.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajere.20240902.11},
      abstract = {Most of the African countries including Ethiopia are often known by problem of large scale agricultural land investment effects on the local community where land is being transferred to investment. Even though several efforts made so far to solve the overall effects of large scale agricultural land investment situation, the challenge is still widespread problem in Ethiopia. Hence the study project's purpose was to find out how large agricultural investments in Bambasi Woreda, Western Ethiopia impact the livelihoods of the surrounding populations and examine the local communities' participation in the large scale agricultural investment. In order to attain these objectives, data were collected from 330 randomly selected households in four purposively selected kebeles of the district for both control groups and treatment groups. The sample size was chosen using a multistage stratified random sampling technique. Both qualitative and quantitative data gathering techniques and instruments were employed in the study. Besides, the instruments utilized to collect the data were observations, focus groups, interviews, household surveys, and document reviews. Data was analyzed using both descriptive statistics and econometric methods. The study shows that out of the total sampled respondents 30 of the treatment group and 13 percent of control group reveal that the project provided opportunity in terms of employment opportunity, technology transfer, utilization of agricultural inputs, changing the working culture of the community and productivity. The chie square value shows there is statistical significance among treated and control group on opportunity investment provided for the household and community. A binary logit regression model was used to describe how large-scale agriculture land investment affected the local community's standard of living. The findings indicated that only six variables were found to be significant out of the characteristics that were expected to influence local community employment in large-scale agricultural land investment projects. These includes household's educational accomplishment, size of HH, occupation of HH, Loss of useful land due to investment Project and technology transfer significantly and positively affected the employment opportunity in large scale agricultural investment projects, whereas the distance of a household's home from an investment project has a negative impact. Large-scale agricultural investments have a detrimental influence on household wealth accumulation and income, according to the estimation results of the average treatment effects on the treated. The management and implementation of land transfer for large-scale agricultural investment projects is inadequate, lack of openness, absence of community consultation, natural forest degradation, socio-economic and ecological effects must be carefully considered before transferring the land for large-scale agricultural investment.
    },
     year = {2024}
    }
    

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  • TY  - JOUR
    T1  - Effects of Large-Scale Agricultural Land Investment on Local Communities Livelihoods: Evidence from Bambasi Woreda, Western Ethiopia
    
    AU  - Shafe Zelalem Gasisa
    AU  - Mihret Fentahun Yeneneh
    AU  - Teha Romanu Benti
    Y1  - 2024/05/10
    PY  - 2024
    N1  - https://doi.org/10.11648/j.ajere.20240902.11
    DO  - 10.11648/j.ajere.20240902.11
    T2  - American Journal of Environmental and Resource Economics
    JF  - American Journal of Environmental and Resource Economics
    JO  - American Journal of Environmental and Resource Economics
    SP  - 20
    EP  - 38
    PB  - Science Publishing Group
    SN  - 2578-787X
    UR  - https://doi.org/10.11648/j.ajere.20240902.11
    AB  - Most of the African countries including Ethiopia are often known by problem of large scale agricultural land investment effects on the local community where land is being transferred to investment. Even though several efforts made so far to solve the overall effects of large scale agricultural land investment situation, the challenge is still widespread problem in Ethiopia. Hence the study project's purpose was to find out how large agricultural investments in Bambasi Woreda, Western Ethiopia impact the livelihoods of the surrounding populations and examine the local communities' participation in the large scale agricultural investment. In order to attain these objectives, data were collected from 330 randomly selected households in four purposively selected kebeles of the district for both control groups and treatment groups. The sample size was chosen using a multistage stratified random sampling technique. Both qualitative and quantitative data gathering techniques and instruments were employed in the study. Besides, the instruments utilized to collect the data were observations, focus groups, interviews, household surveys, and document reviews. Data was analyzed using both descriptive statistics and econometric methods. The study shows that out of the total sampled respondents 30 of the treatment group and 13 percent of control group reveal that the project provided opportunity in terms of employment opportunity, technology transfer, utilization of agricultural inputs, changing the working culture of the community and productivity. The chie square value shows there is statistical significance among treated and control group on opportunity investment provided for the household and community. A binary logit regression model was used to describe how large-scale agriculture land investment affected the local community's standard of living. The findings indicated that only six variables were found to be significant out of the characteristics that were expected to influence local community employment in large-scale agricultural land investment projects. These includes household's educational accomplishment, size of HH, occupation of HH, Loss of useful land due to investment Project and technology transfer significantly and positively affected the employment opportunity in large scale agricultural investment projects, whereas the distance of a household's home from an investment project has a negative impact. Large-scale agricultural investments have a detrimental influence on household wealth accumulation and income, according to the estimation results of the average treatment effects on the treated. The management and implementation of land transfer for large-scale agricultural investment projects is inadequate, lack of openness, absence of community consultation, natural forest degradation, socio-economic and ecological effects must be carefully considered before transferring the land for large-scale agricultural investment.
    
    VL  - 9
    IS  - 2
    ER  - 

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