Securing Land, Securing Investment: A Conceptual Framework for Equitable Land Governance in Foreign Direct Investments

Investments are the engine of economic growth, and among multiple types of investments, foreign direct investment (FDI) is one of the most significant contributors. FDI plays a crucial role in attracting investors who eventually contribute to the economy. However, studies have indicated that, in many parts of the world, such as Ghana and other parts of Africa, land- grabbing activities by foreign investors have caused the locals and their families to involuntarily relocate to other settlements due to poverty. The concept of displacement and loss of property brings to the fore the matter of landowners’ property and rights, which eventually disrupts Sustainable Development Goal 1 (SDG 1), which aims to end poverty in all forms everywhere. Therefore, this article attempts to propose a conceptual framework for land policy that can distribute land equitably among foreign direct investors and local communities. Using John Dunning’s OLI paradigm and the Von Thünen model to develop the framework, it was found that location advantage, ownership advantage, and internalization advantage influence both foreign investors and locals.

property rights, land grabbing, land policy, John Dunning’s OLI paradigm, Von Thünen model

1. Adeel-Farooq, R., Halliru, M., & Lawal, H. M. (2021). Environmental consequences of foreign land acquisitions in developing countries. Environmental Science and Policy, 120, 45–55. [Google Scholar] [Crossref]

2. Amanor, K. S. (2012). Global land grabs, agribusiness and the commodification of land. Journal of Peasant Studies, 39(3–4), 389–414. [Google Scholar] [Crossref]

3. Baird, I. G. (2011). Turning land into capital, turning people into labour: Primitive accumulation and agrarian change in Laos. New Proposals: Journal of Marxism and Interdisciplinary Inquiry, 5(1), 10–26. [Google Scholar] [Crossref]

4. Borras, S. M., & Franco, J. C. (2012). Global land grabbing and trajectories of agrarian change. Journal of Agrarian Change, 12(1), 34–59. [Google Scholar] [Crossref]

5. Cotula L. (2013). The Great African Land Grab? Agricultural Investments and the Global Food System. Zed Books. [Google Scholar] [Crossref]

6. Cotula, L., Oya, C., Codjoe, E., & Asciutti, F. (2019). Testing claims about large-scale land acquisitions in Africa: Findings from a multi-country study. Journal of Development Studies, 55(3), 447–468. [Google Scholar] [Crossref]

7. Danny Marks. (2015). Climate change and land grabbing: Cases from Southeast Asia. Land Use Policy, 47, 451– 460. [Google Scholar] [Crossref]

8. Deininger, K., Selod, H., & Burns, A. (2011). The Land Governance Assessment Framework: Identifying and Monitoring Good Practice in the Land Sector. World Bank. [Google Scholar] [Crossref]

9. Dunning, J. H. (2001). The eclectic (OLI) paradigm of international production: Past, present and future. International Journal of the Economics of Business, 8(2), 173–190. [Google Scholar] [Crossref]

10. Dunning, J. H. (2001). The eclectic (OLI) paradigm of international production: Past, present and future. International Journal of the Economics of Business, 8(2), 173–190. [Google Scholar] [Crossref]

11. Ernest, T. (2010). Large-scale land investments and global governance. Food Policy, 35, 545–553. [Google Scholar] [Crossref]

12. German, L., Schoneveld, G., & Mwangi, E. (2011). Contemporary processes of large-scale land acquisition by investors: Case studies from Sub-Saharan Africa. CIFOR Occasional Paper. [Google Scholar] [Crossref]

13. Gilbert, J. (2017). The human rights of indigenous peoples in the context of large-scale land acquisitions. International Human Rights Law Review, 6(1), 1–46. [Google Scholar] [Crossref]

14. Hossain, M. S., Roy, R., & Datta, A. (2020). Environmental degradation triggered by foreign direct investment: Evidence from developing Asia. Environmental Economics and Policy Studies, 22(4), 553–572. [Google Scholar] [Crossref]

15. Hossain, M. S., Roy, R., & Datta, A. (2020). Environmental degradation driven by FDI inflows: Evidence from developing Asia. Environmental Economics and Policy Studies, 22(4), 553–572. [Google Scholar] [Crossref]

16. Imai, S., Hoshino, S., & Miyauchi, T. (2023). Spatial determinants of land-use change in emerging economies. Land Use Policy, 125, 106523. [Google Scholar] [Crossref]

17. International Land Coalition. (2011). Tirana Declaration: Securing Land Access for the Poor in Times of Intensified Natural Resources Competition. ILC. [Google Scholar] [Crossref]

18. Liang, X., Liu, L., & Zhang, H. (2022). Land-use transitions and economic development in coastal Vietnam. Land Use Policy, 114, 105954. [Google Scholar] [Crossref]

19. Makoni, P. (2015). Ownership advantages and FDI location decisions. Journal of International Business Studies, 46(2), 100–118. [Google Scholar] [Crossref]

20. Morency-Lavoie, A. (2015). Revisiting Von Thünen’s model: Land rent, transportation costs and modern landuse dynamics. Ecological Economics, 111, 55–63. [Google Scholar] [Crossref]

21. Ndi, G. (2017). Land grabbing, governance and human rights: A legal analysis of large-scale land acquisitions in Cameroon. African Journal of International and Comparative Law, 25(3), 410–436. [Google Scholar] [Crossref]

22. Nolte, K., Chamberlain, W., & Giger, M. (2016). International Land Deals for Agriculture: Fresh Insights from the Land Matrix Database. Land Matrix. [Google Scholar] [Crossref]

23. Nolte, K., Chamberlain, W., & Giger, M. (2016). International Land Deals for Agriculture: Fresh Insights from the Land Matrix Database. Land Matrix. [Google Scholar] [Crossref]

24. Osano, H. M., & Koine, P. W. (2016). Role of foreign direct investment in economic development: A review. International Journal of Economics and Finance, 8(3), 122–132. [Google Scholar] [Crossref]

25. Osano, H. M., & Koine, P. W. (2016). Role of foreign direct investment in economic development. International Journal of Economics and Finance, 8(3), 122–132. [Google Scholar] [Crossref]

26. Rafiee, V., & Stenberg, E. (2018). Land grabbing, plantation agriculture, and rural displacement in Ghana. Journal of Land and Rural Studies, 6(1), 1–15. [Google Scholar] [Crossref]

27. Rahman, M., Rodríguez, C., & Figueiredo, R. (2018). Internalisation advantages and international expansion strategies. International Business Review, 27(5), 1123–1133. [Google Scholar] [Crossref]

28. Schoneveld, G. C. (2020). Sustainable land-use governance: Balancing development and environmental outcomes. In Routledge Handbook of Sustainable Business (pp. 240–255). Routledge. [Google Scholar] [Crossref]

29. Schoneveld, G. C. (2020). Sustainable land-use governance: Balancing development and environmental outcomes. In Routledge Handbook of Sustainable Business (pp. 240–255). Routledge. [Google Scholar] [Crossref]

30. Sharmiladevi, P. (2017). Managerial capabilities as ownership advantages in FDI. International Journal of Management Research, 5(2), 112–124. [Google Scholar] [Crossref]

31. Singh, S., & Singh, R. (2020). Environmental degradation: Causes, consequences, and management. Journal of Environmental Management, 255, 109877. [Google Scholar] [Crossref]

32. Sun, Y., & Yin, H. (2024). Land ownership reforms and rural poverty reduction: Evidence from developing regions. World Development, 167, 106298. [Google Scholar] [Crossref]

33. Torres-Rojo, J. M., Moreno-Sánchez, R., & Mendoza-Briseño, M. (2005). Sustainable community forestry and livelihood improvement in Mexico. Forest Policy and Economics, 7(3), 321–333. [Google Scholar] [Crossref]

34. UNCTAD. (2023). World Investment Report 2023: Investing in Sustainable Energy for All. United Nations Conference on Trade and Development. [Google Scholar] [Crossref]

35. United Nations. (2015). Transforming Our World: The 2030 Agenda for Sustainable Development. United Nations. [Google Scholar] [Crossref]

36. Vincent Rafiee & Emma Stenberg. (2018). Large-scale land acquisitions and rural livelihoods in Ghana. Journal of Rural Studies, 65, 35–47. [Google Scholar] [Crossref]

37. Von Thünen, J. H. (1966). Isolated State. (C. M. Wartenberg, Trans.). Pergamon Press. (Original work published 1826). [Google Scholar] [Crossref]

38. Wilson, J., & Baack, D. (2012). Attractiveness of locations for FDI: A review of location advantages. Journal of International Business Research, 11(1), 9–24 [Google Scholar] [Crossref]

• Assessment of the Role of Artificial Intelligence in Repositioning TVET for Economic Development in Nigeria
• Teachers’ Use of Assure Model Instructional Design on Learners’ Problem Solving Efficacy in Secondary Schools in Bungoma County, Kenya
• “E-Booksan Ang Kaalaman”: Development, Validation, and Utilization of Electronic Book in Academic Performance of Grade 9 Students in Social Studies
• Analyzing EFL University Students’ Academic Speaking Skills Through Self-Recorded Video Presentation
• Major Findings of The Study on Total Quality Management in Teachers’ Education Institutions (TEIs) In Assam – An Evaluative Study