8 - Youth Employment and Large-scale Agricultural Land Investments in Africa: Mixed-Method Insights from Nigeria
Africa Development,
Vol. 46 No. 4 (2021): Africa Development
Abstract
This study examines the linkage between youth employment and large-scale agricultural land
investment (LALI) in Africa with a focus on Nigeria. There is no consistent direction regarding the
effects of LALIs on employment in the literature. While some studies found a positive effect,
others opine that LALIs could have a deteriorating effect. This study contributes to the discourse
by carrying out a comparative analysis of youth (un)employment in communities with and without LALIs. A mixed methods analysis is engaged in the study. The quantitative data is estimated using the difference-in-difference and propensity score matching techniques, while the qualitative aspect is carried out using key informant interviews and focus group discussion. The quantitative result shows that the presence of LALIs in the communities leads to a 1.24 percentage reduction in the amount of wage earned by the youth, but was only significant at 10 per cent. On the employment of youth conditioned upon the presence of LALIs in a community, the study finds a reduction in the number of hours worked by six hours, which was also only significant at 10 per cent. From the qualitative analysis, the study finds varied wage levels across the sample. These findings raise concerns regarding the type of employment provided by LALIs. Hence, to curb youth unemployment and create decent jobs, LALI recipient countries could promote bette bargaining power for the host communities to negotiate better employment.
Keywords
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- AfDB (African Development Bank), 2014, Gender, Poverty and Environmental Indicators of African Countries. Tunisia: Economic and Social Statistics Division/Statistics Department. http://www.afdb.org/fileadmin/uploads/afdb/ Documents/Publications/Gender Poverty_and_Environmental_Indicators_ on_African_Countries_2014.pdf (accessed 12 September 2018).
- AfDB (African Development Bank), 2018, ‘African economic outlook: Tanzania’. http://www.africaneconomicoutlook.org/fileadmin/uploads/aeo/PDF/Tanzania%20 Full%20PDF%20Country%20Note.pdf (accessed 11 March 2018).
- African Business, 2017, ‘“Youth unemployment is Africa’s greatest challenge” says Tony Elumelu’, https://africanbusinessmagazine.com/interviews/youth-unemployment-africas-greatest-challenge-says-tony-elumelu/ (accessed 21 December 2018).
- African Union, 2006, African Youth Charter. http://africa-youth.org/sites/default/ files/african_youth_charter.pdf (accessed 12 September 2014).
- Ahlerup, P. and Tengstam, S., 2015, ‘Do the land-poor gain from agricultural investments? Empirical evidence from Zambia using panel data’, Paper presented at the NCDE 2015 Seminar, Department of Economics, University of Gothenburg.
- Aigbokhan, B. and Ola, K., 2015, ‘Foreign land acquisitions, households’ livelihood with some evidences on Nigeria’, in E. Osabuohien, ed., Handbook of Research on In-Country Determinants and Implications of Foreign Land Acquisitions, Hershey, PA: Business Science Reference, pp. 287–305.
- Ali, D.A., Deininger, K. and Harris, A., 2015, ‘Does large farm establishment create benefits for neighboring smallholders? Evidence from Ethiopia’, Land Economics, Vol. 95, No. 1, pp.71–90.
- Anseeuw, W., Boche, M., Breu, T., Ginger, M., Lay, J., Messerli, P. and Nolte, K., 2012, Transnational Land Deals for Agriculture in the Global South: Analytical Report Based on the Land Matrix Database, Bern/Montpellier/Hamburg: CDE/ CIRAD/GIGA.
- Anyanwu, J.C., 2014, ‘Does intra-African trade reduce youth unemployment in Africa?’, African Development Review, Vol. 26, No. 2, pp. 286–309.
- Ariyo, J.A. and Mortimore, M., 2012, ‘Youth farming and Nigeria’s development dilemma: the Shonga experiment’, IDS Bulletin, Vol. 43, No. 6, pp. 58–66.
- Asiedu, E., 2004, ‘The determinants of employment of affiliates of U.S. multinational enterprises in Africa’, Development Policy Review, Vol. 22, No. 4, pp. 371–9.
- Asiedu, E., Jin, Y., and Kanyama, I., 2011, ‘The impact of HIV/AIDS on foreign direct investment in developing countries’, University of Kansas, mimeo. http://www.business.uwa.edu.au/ data/assets/pdf_file/0004/1655446/JIN- ADEW2011.pdf (accessed 12 September 2014).
- Barbanente, G. and Aisbett, E., 2016, ‘Large-scale land acquisitions and rural development: empirical evidence from Ethiopia’, Paper presented at the 2016 World Bank Conference on Land and Poverty, Washington DC, 14–18 March.
- Bellows, J., and Miguel, E., 2009, ‘War and local collective action in Sierra Leone’, Journal of Public Economics, Vol. 93, No. 11–12, pp. 1144–57.
- Bluwstein, J., Lund, J.F., Askew, K., Stein, H., Noe, C., Odgaard, R. and Engström, L., 2018, ‘Between dependence and deprivation: the interlocking nature of land alienation in Tanzania’, Journal of Agrarian Change, Vol. 18, No. 4, pp. 806–30. Brown, L.R., 2013, ‘Food, fuel, and the global land grab’, Futurist, Vol. 47, No. 1. CIA (Central Intelligence Agency), 2018, The World Factbook: Tanzania. https://www.cia.gov/library/publications/resources/the-world-factbook/geos/tz.html (accessed 21 June 2018).
- Cohen, J.S. and Weitzman, M.L., 1975, ‘A Marxian model of enclosures’, Journal of Development Economics, Vol. 1, No. 4, pp. 287–336.
- Cotula, L., Vermeulen, S., Leonard, R. and Keeley, J., 2009, Land Grab or Development Opportunity? Agricultural Investment and International Land Deals in Africa, London/Rome: IIED/FAO/IFAD.
- Deininger, K., Byerlee, D., Lindsay, J., Norton, A., Selod, H. and Stickler, M., 2011, Rising Global Interest in Farmland, Washington DC: The World Bank.
- Engström, L., and Hajdu, F. 2018. Conjuring ‘Win-World’–Resilient Development Narratives in a Large-Scale Agro-Investment in Tanzania. The Journal of Development Studies, DOI:
- https://doi.org/10.1080/00220388.2018.1438599. FAO (Food and Agriculture Organisation), 2014, Youth and Agriculture: Key Challenges and Concrete Solutions, FAO/CTA/IFAD. https://www.ifad.org/documents/38714170/39135645/Youth+and+agriculture_Key+challenges+and+concrete+solutions/e803da0e-edc8-461b-961a- 233a2dc61458 (accessed 12 September 2020).
- FIAN (Food First and Information and Action Network), 2010, Land Grabbing in Kenya and Mozambique: A Report on Two Research Missions – And a Human Rights Analysis of Land Grabbing in Kenya and Mozambique, Heidelberg: FIAN International.
- https://www.fian.org/en/news/article/land-grabbing-in-kenya- and-mozambique-269 (accessed 12 September 2020).
- Friis, C. and Reenberg, A., 2010, ‘Land grab in Africa: emerging land system drivers in a teleconnected world’, GLP Report No. 1, GLP-IPO, Copenhagen.
- Haberl, H., Erb, K-H., Krausmann, F., Berecz, S., Ludwiczek, N., Martínez-Alier, J., Musel, A. and Schaffartzik, A., 2009, ‘Using embodied HANPP to analyse teleconnections in the global land system: conceptual considerations’, Journal of Geography, Vol. 109, No. 2, pp. 119–30.
- Herrmann, R., 2017, ‘Large-scale agricultural investments and smallholder welfare: a comparison of wage labour and outgrower channels in Tanzania’, World Development, Vol. 90, pp. 294–310.
- Herrmann, R., Jumbe, C., Bruentrup, M. and Osabuohien, E., 2018, ‘Competition between biofuel feedstock and food production: empirical evidence from sugarcane outgrower settings in Malawi’, Biomass and Bioenergy, Vol. 114, July, pp. 100–11.
- Hilson, G. and Osei, L., 2014, ‘Tackling youth unemployment in sub-Saharan Africa: is there a role for artisanal and small-scale mining?’ Futures, Vol. 62, pp. 83–94.
References
AfDB (African Development Bank), 2014, Gender, Poverty and Environmental Indicators of African Countries. Tunisia: Economic and Social Statistics Division/Statistics Department. http://www.afdb.org/fileadmin/uploads/afdb/ Documents/Publications/Gender Poverty_and_Environmental_Indicators_ on_African_Countries_2014.pdf (accessed 12 September 2018).
AfDB (African Development Bank), 2018, ‘African economic outlook: Tanzania’. http://www.africaneconomicoutlook.org/fileadmin/uploads/aeo/PDF/Tanzania%20 Full%20PDF%20Country%20Note.pdf (accessed 11 March 2018).
African Business, 2017, ‘“Youth unemployment is Africa’s greatest challenge” says Tony Elumelu’, https://africanbusinessmagazine.com/interviews/youth-unemployment-africas-greatest-challenge-says-tony-elumelu/ (accessed 21 December 2018).
African Union, 2006, African Youth Charter. http://africa-youth.org/sites/default/ files/african_youth_charter.pdf (accessed 12 September 2014).
Ahlerup, P. and Tengstam, S., 2015, ‘Do the land-poor gain from agricultural investments? Empirical evidence from Zambia using panel data’, Paper presented at the NCDE 2015 Seminar, Department of Economics, University of Gothenburg.
Aigbokhan, B. and Ola, K., 2015, ‘Foreign land acquisitions, households’ livelihood with some evidences on Nigeria’, in E. Osabuohien, ed., Handbook of Research on In-Country Determinants and Implications of Foreign Land Acquisitions, Hershey, PA: Business Science Reference, pp. 287–305.
Ali, D.A., Deininger, K. and Harris, A., 2015, ‘Does large farm establishment create benefits for neighboring smallholders? Evidence from Ethiopia’, Land Economics, Vol. 95, No. 1, pp.71–90.
Anseeuw, W., Boche, M., Breu, T., Ginger, M., Lay, J., Messerli, P. and Nolte, K., 2012, Transnational Land Deals for Agriculture in the Global South: Analytical Report Based on the Land Matrix Database, Bern/Montpellier/Hamburg: CDE/ CIRAD/GIGA.
Anyanwu, J.C., 2014, ‘Does intra-African trade reduce youth unemployment in Africa?’, African Development Review, Vol. 26, No. 2, pp. 286–309.
Ariyo, J.A. and Mortimore, M., 2012, ‘Youth farming and Nigeria’s development dilemma: the Shonga experiment’, IDS Bulletin, Vol. 43, No. 6, pp. 58–66.
Asiedu, E., 2004, ‘The determinants of employment of affiliates of U.S. multinational enterprises in Africa’, Development Policy Review, Vol. 22, No. 4, pp. 371–9.
Asiedu, E., Jin, Y., and Kanyama, I., 2011, ‘The impact of HIV/AIDS on foreign direct investment in developing countries’, University of Kansas, mimeo. http://www.business.uwa.edu.au/ data/assets/pdf_file/0004/1655446/JIN- ADEW2011.pdf (accessed 12 September 2014).
Barbanente, G. and Aisbett, E., 2016, ‘Large-scale land acquisitions and rural development: empirical evidence from Ethiopia’, Paper presented at the 2016 World Bank Conference on Land and Poverty, Washington DC, 14–18 March.
Bellows, J., and Miguel, E., 2009, ‘War and local collective action in Sierra Leone’, Journal of Public Economics, Vol. 93, No. 11–12, pp. 1144–57.
Bluwstein, J., Lund, J.F., Askew, K., Stein, H., Noe, C., Odgaard, R. and Engström, L., 2018, ‘Between dependence and deprivation: the interlocking nature of land alienation in Tanzania’, Journal of Agrarian Change, Vol. 18, No. 4, pp. 806–30. Brown, L.R., 2013, ‘Food, fuel, and the global land grab’, Futurist, Vol. 47, No. 1. CIA (Central Intelligence Agency), 2018, The World Factbook: Tanzania. https://www.cia.gov/library/publications/resources/the-world-factbook/geos/tz.html (accessed 21 June 2018).
Cohen, J.S. and Weitzman, M.L., 1975, ‘A Marxian model of enclosures’, Journal of Development Economics, Vol. 1, No. 4, pp. 287–336.
Cotula, L., Vermeulen, S., Leonard, R. and Keeley, J., 2009, Land Grab or Development Opportunity? Agricultural Investment and International Land Deals in Africa, London/Rome: IIED/FAO/IFAD.
Deininger, K., Byerlee, D., Lindsay, J., Norton, A., Selod, H. and Stickler, M., 2011, Rising Global Interest in Farmland, Washington DC: The World Bank.
Engström, L., and Hajdu, F. 2018. Conjuring ‘Win-World’–Resilient Development Narratives in a Large-Scale Agro-Investment in Tanzania. The Journal of Development Studies, DOI:
https://doi.org/10.1080/00220388.2018.1438599. FAO (Food and Agriculture Organisation), 2014, Youth and Agriculture: Key Challenges and Concrete Solutions, FAO/CTA/IFAD. https://www.ifad.org/documents/38714170/39135645/Youth+and+agriculture_Key+challenges+and+concrete+solutions/e803da0e-edc8-461b-961a- 233a2dc61458 (accessed 12 September 2020).
FIAN (Food First and Information and Action Network), 2010, Land Grabbing in Kenya and Mozambique: A Report on Two Research Missions – And a Human Rights Analysis of Land Grabbing in Kenya and Mozambique, Heidelberg: FIAN International.
https://www.fian.org/en/news/article/land-grabbing-in-kenya- and-mozambique-269 (accessed 12 September 2020).
Friis, C. and Reenberg, A., 2010, ‘Land grab in Africa: emerging land system drivers in a teleconnected world’, GLP Report No. 1, GLP-IPO, Copenhagen.
Haberl, H., Erb, K-H., Krausmann, F., Berecz, S., Ludwiczek, N., Martínez-Alier, J., Musel, A. and Schaffartzik, A., 2009, ‘Using embodied HANPP to analyse teleconnections in the global land system: conceptual considerations’, Journal of Geography, Vol. 109, No. 2, pp. 119–30.
Herrmann, R., 2017, ‘Large-scale agricultural investments and smallholder welfare: a comparison of wage labour and outgrower channels in Tanzania’, World Development, Vol. 90, pp. 294–310.
Herrmann, R., Jumbe, C., Bruentrup, M. and Osabuohien, E., 2018, ‘Competition between biofuel feedstock and food production: empirical evidence from sugarcane outgrower settings in Malawi’, Biomass and Bioenergy, Vol. 114, July, pp. 100–11.
Hilson, G. and Osei, L., 2014, ‘Tackling youth unemployment in sub-Saharan Africa: is there a role for artisanal and small-scale mining?’ Futures, Vol. 62, pp. 83–94.