Impacts of Large-scale Land Investments on Income, Prices, and Employment: Empirical Analyses in Ethiopia

We review the trend and types of large-scale land transaction in Ethiopia since 1992 and assess the impacts of one such investment using four scenarios: (i) a baseline scenario; (ii) the forest loss resulting from the land transfer; (iii) the operation of the investment at full scale; and (iv) an alternative scenario of a smaller investment paired with a more inclusive rural development policy. Results showed that forest resources are important for the rural poor, but that losses can be offset by gains from employment generation and business opportunities. The alternative scenario indicated opportunities for better social and environmental sustainability.