Impact Of Large Scale Agricultural Investments Towards Local Development In Gambella Ethiopia

Large scale agricultural investments (LASI) have grabbed the local as well as international investors’rnattention following the 2007/08 world food crisis. LSAI’s are believed to bring local developmentrnopportunities for the rural community in developing countries. Governments of developing countriesrnincluding Ethiopia have been trying to convince local and international investors to engage in the sectorrnhoping to alleviate their local development issues thereby acquiring foreign currency. The justificationrngiven by the GoE to the leasing of large tracts of arable lands both to domestic and foreign investors is thatrnit is the key for triggering modernization in the agricultural sector and part of country development strategyrnto ensure food security. Therefore the study is conducted to investigate the impact of large scale agriculturalrninvestments towards local development in Gambella, Ethiopia. Primary data collected from householdrnsurvey and secondary data from government offices were used. The analysis was done descriptively as wellrnas econometrically using STATA 13 and SPSS 23 software. The econometric analysis of the study isrnconducted using PSM (Propensity Score Matching). The findings of the study, showed that large scalernagricultural investments have a positive and significant impact towards local development expressed inrnterms of employment, technology transfer and infrastructure development. This implies, if properlyrnadministered, LSAI’s could bring local development to the local community.rnKey words: - Large Scale Agricultural Investments; Local Development; Employment;rnTechnology Transfer; Infrastructure Development

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