The Impact of Large-Scale Agricultural Investments on Welfare and Livelihoods of Local Communities: A Meta-Analysis
Lingerh Sewnet Akalu, Huashu Wang, Solomon Zena Walelign, Workineh Asmare Kassie
Large-scale land investments are often pursued as pro-poor investments by governments in developing countries. However, empirical literature on the impact of these investments on welfare and livelihoods of local communities has reported mixed results. We undertook a meta-analysis based on estimates of 37 primary studies to understand the overall impact of these investments on welfare and livelihoods of local communities. On average, we find that expansion of large-scale land investments leads to a favorable impact on welfare and livelihoods of local communities (with an average standardized mean effect size of 0.043). Asset building, increasing income and enhancing food security are the pathways that make these investments beneficial to welfare and livelihoods of local communities. However, the sub-group analysis show that the average impact is heterogenous across host countries of these investments. For most of the countries the positive significant impact is robust. We discussed the source of these heterogeneity, the impact pathways and publication bias in the primary studies. Overall, the results of our meta-analysis are in support of government policies and programs that promote large-scale land investments within the broader policy debate about large scale-land investments. However, the smaller mean effect size and the heterogeneous effects across host countries indicates that much remains to be done in the implementation of regulatory and guiding frameworks of large-scale land investments promulgated with an aim to respect tenure rights, livelihoods and resources so that these investments benefit the local community.
Event: World Bank Land Conference 2024 - Washington
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